Directorate General of Vigilance, CBIC 28.06.

2022

DIRECTORATE GENERAL OF VIGILANCE

CENTRAL BOARD OF INDIRECT TAXES &
CUSTOMS

STANDARD OPERATING PROCEDURE FOR THEMATIC

AUDIT OF GST REFUNDS
I. Objective:

As part of SAADHIT for second quarter of 2022-23, all zonal units of DGoV will undertake
thematic audit of GST refunds. The objective of conducting this audit will be to ascertain
existing procedures and practices of sanctioning GST refunds in various field formations,
with a view to identify lapses and suggest systemic improvement. The thematic audit will be
done from a preventive vigilance perspective so as to mitigate the existing loopholes which
might be getting exploited by unscrupulous entities.

PART A
Overview of Existing Framework for Sanction of Refunds:

1. Refund in GST

Whenever tax, interest, or any other amount is paid to the Government more than the liability
incurred or accrued, then the situation of refund of such amount in excess of liability arises.
In terms of the explanation to Section 54 of the CGST Act, “refund” includes a refund of tax
paid on zero-rated supplies of goods or services or both or on inputs or input services used in
making such zero-rated supplies, or refund of tax on the supply of goods regarded as deemed
exports, or refund of the unutilized input tax credit.

2. Statutory provisions relating to refunds in GST

Sections 54 to 56 under Chapter XI of the CGST Act, 2017 deal with refunds under GST.
The procedure for claiming refunds is contained in Chapter X of the CGST Rules, 2017 under
Rules 89 to 97A.

3. Refunds allowed under GST

Refunds under GST are broadly categorized as follows:

(I) Refund of tax paid on supplies of goods or services or both

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a. Refund of tax paid on export of good with payment of tax

b. Refund of tax paid on export of services with payment of tax
c. Refund of tax paid on supplies made to SEZ Unit/SEZ Developer with payment of tax
d. Refund to the supplier of tax paid on deemed export supplies.
e. Refund to the recipient of tax paid on deemed export supplies.

(II) Refund of unutilized ITC

a. Refund of unutilized input tax credit (ITC) on account of exports without payment of tax.
b. Refund of unutilized ITC on account of supplies made to SEZ Unit/SEZ Developer
without payment of tax.
c. Refund of unutilized ITC on account of accumulation due to an inverted tax structure.

(III) Refund of balance in electronic cash ledger

(IV) Refund of advance tax deposited by Casual Taxpayer or Non-Resident Taxpayer

(V) Refund of tax paid on supplies received by Embassies, Consulates, Agencies of

UNO.

(VI) Others

a. Refund of excess payment of tax.

b. Refund of tax paid on an intra-State supply which is subsequently held to be inter-State
supply and vice versa.
c. Refund on account of assessment/provisional assessment/appeal/any other order.
d. Refund on account of “any other” ground or reason.

4. Time limit to claim a refund in GST

The time limit for claiming a refund is two years from the relevant date. However, in terms
of the Explanation to Section 54, the ‘relevant date’ or the reference date may be different
for different situations.

5. Processing of Refunds:

i. The refund mechanism under GST is now fully automated, including the refund of
IGST paid on the export of goods, which is processed by the Customs officers. With
effect from 26‐9‐2019, the claim in respect of the various types of refund is now to be
filed online on the GST Portal in Form GST RFD 01 and is processed electronically.
ii. A refund application filed after correction of deficiency is treated as a fresh refund
application, and such a rectified refund application, submitted after correction of

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deficiencies, will also have to be submitted within 2 years of the relevant date as
defined in the explanation after sub-section (14) of section 54 of the CGST Act.

iii. The case of a refund of the IGST paid on exports of goods is dealt with under Rule 96
of the CGST Rules, 2017 and there is no specific form that needs to be filled out for
claiming refund of IGST paid on export of goods the shipping bill filed by an exporter
of goods shall be deemed to be an application for refund of IGST paid on the goods
exported out of India.

iv. The CBIC vide Circular No. 125/44/2019 – GST dated 18th November, 2019 issued
guidelines and modalities to be followed while processing the online Refund
applications. Certain clarifications and amendments to the said circular were issued
vide Circulars No.135/05/2020 – GST dt. 31st March, 2020, No. 139/09/2020-GST
dt. 10th June, 2020, No. 147/03/2021-GST dt. 12th March, 2021. As per these
circulars the documents/records to be submitted online by the tax payers while
claiming refund under various categories was also prescribed.

v. The CBIC vide instructions issued in file No.CBEC-20/16/35/2019-GST dated

14.06.2022 sets out the procedure relating to sanction, post-audit and review of refund
claims.

vi. The steps involved in the online processing of the refund application:

a) Applicant files the refund application on the GST Portal in Form GST RFD‐01.
b) Acknowledgement in Form GST RFD‐02 will be issued by the Refund Processing
Officer, within 15 days from the date of filing of the refund application, if the refund
application is found to be complete in all aspects
c) In case, any deficiencies are noticed in refund application, the Deficiency Memo will
be issued in Form GST RFD‐03.
d) Tax Official may issue Provisional Refund Order in Form GST RFD‐04 within 7 days
from the date of acknowledgment up to 90% of the refund claimed amount, if the
applicant is eligible to get a provisional refund.
e) Refund Processing Officer will issue a Refund Sanction/ Rejection Order in Form
GST RFD‐06.
f) Payment Order needs to be issued in Form GST RFD‐05 after issuance of Form GST
RFD‐04 or Form GST RFD‐06 in case of sanction of refund.
g) The sanctioned refund amount may be withheld by the Refund Processing Officer by
issuing Form GST RFD‐07 (Part B). In such cases, Tax Official will not issue Form
GST RFD-05, till the withholding order is in operation.
h) Order for re-credit of the amount to Electronic Cash or Credit ledger on rejection of
refund claim (Form GST PMT‐03) to be issued in case the tax amount is debited from
the ledgers and is rejected.

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6. Refund not allowed to be granted in certain situations

(i) Withholding of Refund under Section 54 (3)

(a)No refund of unutilized input tax credit shall be allowed in cases where the
goods exported out of India are subjected to export duty;
(b)No refund of input tax credit shall be allowed, if the supplier of goods or
services or both avails of drawback in respect of central tax or claims refund of
the integrated tax paid on such supplies.

(ii) Withholding of Refund under Section 54(10)

(a) Defaulted in furnishing any return;

(b) Defaulted in payment of any tax, interest or penalty:-The Proper Officer is
authorized to deduct from the refund due, any tax, interest, penalty, fee or any
other amount which the taxable person is liable to pay but which remains unpaid
under this Act or under the existing law.

(iii) Withholding of Refund under Section 54(11)

Where an order giving rise to a refund is the subject matter of an appeal or further
proceedings or where any other proceedings under this Act is pending and the
Commissioner is of the opinion that grant of such refund is likely to adversely
affect the revenue in the said appeal or other proceedings on account of
malfeasance or fraud committed, he may, after giving the taxable person an
opportunity of being heard, withhold the refund till such time as he may
determine.

(iv) Withholding of Refund Casual Taxable Person or Non-Resident Taxable

Person – Section 54 (13)

The amount of advance tax deposited by a casual taxable person or a non-resident

taxable person under sub-section (2) of section 27, shall not be refunded unless
such person has, in respect of the entire period for which the certificate of
registration granted to him had remained in force, furnished all the returns
required under section 39.

(v) Non Payment of Refund – Section 54 (14)

No refund under sub-section (5) or sub-section (6) shall be paid to an applicant, if

the amount is less than one thousand rupees. Sub-sections 5 and 6 are about
application of refund claiming refund amount less than one thousand rupees. It is
clarified vide circular 125/44/2019 that the limit of rupees one thousand shall be
applied for each tax head separately and not cumulatively.

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Diagrammatic Representation of Refund Process in CGST

Application for refund

(Form RFD-01)
Resubmit the application
after rectifying the defect.
New ARN is generated.

Yes Application No
Issue Acknowledgement within 15 Issue Deficiency Memo within 15
complete in
days of application (Form RFD-02) days of application (Form RFD-03)
all respect

Zero rated supply Others

Verify whether No
Issue provisional refund within 7 whole or part
Issue sanction order
days of acknowledgement (RFD-04) amount is
amount (Form RFD-06)
inadmissible or past
dues to be adjusted

Issue Notice for inadmissible Issue notice for adjustment of

amount (RFD-08) dues (Form RFD-07)

Receipt of reply to SCN from the taxpayer

within 15 days (Form RFD-09)

Issue sanction order after reducing the Payment advice for crediting of
inadmissible and adjusted amount (Form refund amount in the bank
RFD- ) account (RFD-05)

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PART-B

Guidelines for Conducting Thematic Audit of GST Refunds

1. Selection of Commissionerate/s for Thematic Audit

The thematic audit is to be conducted for the period FY 2021-22. For this purpose,
following 2 reports for all Commissionerates may be sought from all CC Zones under
the jurisdiction of DGoV Zonal Unit.

i. MPR pertaining to Refunds for the period April 2021 to March 2022
ii. Form-wise Report for all category of Refunds generated through the ACES-
GST system for Refund module

These two reports will give the details of Refund applications received and sanctioned
by each Commissionerate during the period April 2021 to March 2022. Based on data
collected and other risk parameters, like alerts by DGARM, SGST Authorities and
other enforcement agencies, a Commissionerate/s may be selected for conducting the
thematic audit.
Timeline: The selection of Commissionerate/s may be done by 20.07.2022.

2. Desk Review (Before Audit)

Before proceeding to conduct thematic audit, the Vigilance officers shall seek
complete details of the GST refunds processed during FY 2021-22 by the selected
Commissionerate/s lfor desk review. The following MIS reports may be sought from
the CC office for the selected Commissionerate/s for conducting Desk Review:

a. Refund register: This report gives a 360 degree view of a Refund claim/Application
Reference Number (ARN). The said report can be generated through Refunds module
on the ACES-GST system for the selected Commissionerate/s by the CC office. The
Refund Register is a “as on date” modality. Therefore, refund register may be sought
for the period April 2021- March 2022 . This can be easily provided by downloading
the same in Excel format and applying relevant filters pertaining to the period
selected. This report would give ARN wise entire details of all refund applications
filed within the selected formation. Analysis of this report might also generate red
flags related to abnormal processing of refunds ( for ex sanction in relatively very
short time).

b. The Form-wise Report: This report shall display form wise (RFD-01,02,03,…..)
number of refund applications processed/being processed. The said report can be
generated through Refunds module on the ACES-GST system for the selected

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Commissionerate/s by CC office. This report would give auditors a birds eye view
of receipts, processing and disposal of refunds during the selected period. Any red
flags noticed may be selected for deeper scrutiny.

c. Refund Payment Disposal Report: This report in ‘Summary’ format for the
selected period may be sought from CC office for all the Divisions of the selected
Commissionerate/s. While generating report “ALL” filter for the mode of disposal
and Refund type should be used.

Guiding Note: All the above mentioned reports are accessible at the level of CCO
and may be sought from there. For convenience and ease of study, all reports may be
sought in Excel format and studied for any apparent red flags.

The above reports shall give an idea to the vigilance audit officers to identify the type
of refunds that are being processed in a particular formation, delays made in
processing, general trends etc. The audit officers shall observe whether the refunds are
being processed in First-in First-out method, whether timelines are being adhered to,
whether there is any trend regarding a particular category of refunds etc.

Selection of files for detailed verification:

Analysis of data shall be done during Desk Review and certain ARNs may be
identified on a random basis for detailed examination during Audit. A list of
files/ARN to be taken up for detailed verification during thematic audit may be
prepared (from the Refund Register) keeping in mind the total number of files in a
particular formation. The indicative sample may be created such that certain refund
claims under each category are selected based on certain risk parameters like:-
(i) Refund amount claimed (for ex. above 50 lakhs).
(ii) First time refund claimants.
(iii) New registrants.
(iv) Frequent refund claimants whose refund claims have been processes within
short period (like 7 days).
(v) GSTIN not registered in Central Excise/Service Tax era and filing refunds of
significant amount for ex. Rs 50 Lakhs or more.
(vi) Days taken for processing or grant of refunds (say less than 7 days).
(vii) Nature of commodity/services
(viii) Alerts by DGARM, SGST Authorities and other enforcement agencies etc.

Note: The above parameters are only indicative and not exhaustive. Besides, if
refunds under above mentioned categories are not available then suitable ARNs may be
selected based on other relevant risk parameters.

Timeline: The desk review may be completed within 10 days from the selection of
Commissionerate/s.

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3. Checklist for conducting Thematic Audit of GST Refunds (During

audit)

During detailed verification of sample files selected during Desk review, available records
and documents shall be examined to ascertain whether Refund Claim has been processed as
per existing legal provisions. The refund claim shall be examined in terms of CBIC Circular
No. 125/44/2019 – GST dated 18.11.2019, further amended vide Circulars No.135/05/2020
– GST dt. 31.03.2020, No. 139/09/2020-GST dt. 10.06.2020, and No. 147/03/2021-GST dt.
12.03. 2021 and Instruction no. 03/2022 GST dt 14.06.2022 to the extent applicable.

To guide the officers during thematic audit, a checklist has been prepared covering major
aspects of sanctioning of refunds. This is a guiding tool and other aspects may also be
covered as per requirement. The detailed verification of randomly selected files during desk
review may comprise of the following checks (indicative only):

S.No CRITERIA RELEVANT Yes/No Observations

PROVISIONS
1 a. Whether all the relevant documents mentioned Para 4(a) of Master
in Annexure-A of the Circular are uploaded by Circular
the Taxpayer and the same are cross-checked No.125/44/2019-GST
during verification of the refund claim. dated 18.11.2019
b. Whether any other documents other than the
prescribed one have been submitted by the &
refund claimant to check the genuineness of
refund claim. Rule 89 (2) of CGST
c. If yes, why and whether these documents have Rules, 2017
been called for or checked in other refund
claims of similar refund claimants
2 Whether the Acknowledgement / Deficiency Para 4(c) & 9 of
Memo issued against the ARN within 15 days of Board’s Master
receipt of the refund claim? Circular
No.125/44/2019-GST
dated 18.11.2019
3 a. Whether any refund claims have been Para 4(d) of Board’s
transmitted to wrong jurisdiction officer? Master Circular No
b. If so, are they correctly re-assigned to the 125/44/2019-GST
jurisdictional office within 3 working days? dated 18.11.2019
4 Whether the amount, where required, has been Para 4(b) of Board’s
debited from the electronic credit/cash ledger Master Circular No
125/44/2019- GST
dated 18.11.2019 and
Rule 89(3) of CGST
Rules, 2017.
5 Whether all the required GST Returns have been Para 6 of Board’s
furnished on or before filing of refund claim Master Circular No
125/44/2019- GST
dated 18.11.2019 and

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Section 54(10) of
CGST Act, 2017
6 Whether the applicant has submitted requisite Para 7 of Board’s
Undertakings along with refund claim Master Circular No
125/44/2019- GST
dated 18.11.2019
7 Whether multiple deficiency memos issued for the Para 11 of Board’s
same refund application? If so, the reasons for the Master Circular No.
same. 125/44/2019-GST
dated 18.11.2019
8 Whether the refund claims have been filed within Para 12 of Board’s
2 years from the relevant date? If so, whether the Master Circular No.
same has been verified? 125/44/2019-GST
dated 18.11.2019 and
Section 54(12) of
CGST Act’2017.
9 Whether provisions of unjust enrichment are Section 54(4) and
applicable or not. If unjust enrichment is 54(8) of the CGST
applicable in the refund, whether the applicant has Act, 2017
furnished due documents/ certificates?
10 Whether provisional refund of 90 % of the claim Para 14 of Board’s
has been issued within 7 days from the date of Master Circular No.
issuance of acknowledgement, if not, then the 125/44/2019-GST
reason for delay may be checked. If so, whether dated 18.11.2019
the Final Order is issued?
11 Whether any irregular provisional refund has been Section 54(6) of
sanctioned in case of refund of categories other CGST Act, 2017
than on account of zero-rated supplies?
12 When the Final amount to be sanctioned is less Para 15 of Board’s
than the amount claimed and the Provisional Master Circular No.
refund is already sanctioned, whether SCN under 125/44/2019-GST
Form RFD-08 under Section 54 read with section dated 18.11.2019 and
73/74 issued? Section 54 of CGST
Act’ 2017
13 In case some SCN has been issued, whether any Rule 92 (3) of CGST
reply to the SCN filed (RFD-09) and whether the Rules, 2017
SCN has been decided and whether Principle of Para 2.1.1 of
Natural Justice has been followed. Instructions 03/2022
dt 14.06.2022
14 Whether any adjustment or withholding of refund, Para 17 of Board’s
as provided under sub-sections (10) and (11) of Master Circular No.
section 54 of the CGST Act, has been done in r/o 125/44/2019-GST
of the amount of refund which has been dated 18.11.2019
provisionally sanctioned. If yes, then reason
thereof.
15 a. Whether any partial or complete adjustment of Para 35 of Board’s
sanctioned amount of refund against any Master Circular No.
outstanding demand has been made? 125/44/2019-GST
b. If so, whether the outstanding dues are dated 18.11.2019 and
properly verified before issuance of such an Section 54 of CGST
adjustment order? Act’2017 [r/w sub
c. Whether there is any functionality on the section 6(b), 7(a),
ACES-GST system to identify the same? 8(a), 9(a) of Sec.142

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of CGST Act.]
16 Whether the RFD-05 (Payment Order) issued Section 54(7) of
within 60 days. CGST Act, 2017
17 Whether any refund claim of less than Rs 1000/- Section 54(14) of
has been sanctioned? CGST Act, 2017
18 a. Whether any Refund claims are sanctioned Section 54(7) of
beyond 60 days of the receipt of the CGST Act, 2017
application? If so, reasons for non-adherence
to prescribed time limit may also be
ascertained.
b. Whether the interest has been sanctioned on
such late issuance of refund claim?
Specific checks in case of Refund of ITC on account of Export of goods/services
19 In case of refund on account of export of goods, Para 18 of Board’s
whether the details of shipping bill/bill of exports, Master Circular No.
wherever applicable, have been verified from the 125/44/2019-GST
ICEGATE portal? dated 18.11.2019
20 In case of refund on account of export of Services, Para 48 of Board’s
whether the BRC has been verified? Master Circular
No.125/44/2019-GST
dated 18.11.2019 &
Rule 89(2) of CGST
Rules’ 2017
21 Whether HSN code of goods exported and inward Para 6 of Circular
supplies has been checked and analysed? No. 135/05/2020-
GST dated
31.03.2020
22 In case of refund of unutilized ITC, Para 36 of Board’s
a. Whether the required Form GSTR-2A for the Master Circular No.
relevant period, uploaded in portal, has been 125/44/2019-GST
verified. dated 18.11.2019 ,
b. Whether details of all invoices uploaded in Circular No.
portal, as Annexure-B, have been verified. 135/05/2020-GST
c. In case those invoices which are not populated dated 31.03.2020,
in GSTR-2A, have also been verified Circular No.
d. How GSTR- 2A submitted by the taxpayer is 139/09/2020-GST
checked for the correctness or the accuracy dated 10.06.2020,
i.e., whether it is cross checked with GSTR-2B and Para 2.1(B)(g) of
or not or with the GSTR-2A generated from Board’s Instructions
AIO? no. 03/2022-GST
dated 14.06.2022.
23 In case of refund of unutilized ITC, whether the Para 37 of Board’s
refundable amount has been debited from Master Circular No.
electronic credit ledger of the applicable in order 125/44/2019-GST
as given under Para 37 of said Circular. dated 18.11.2019 and
Rule 89(3) of CGST
Rules, 2017
24 Whether Table-9 of GSTR 1 for relevant tax Preventive
period and subsequent periods have been checked checkpoint
for amendments to outward supply?
25 Whether verification of outward liability in GSTR Section 54 (10) of the
3B and GSTR 1 have been made to check CGST Act, 2017
outstanding dues?

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26 In cases of refunds of unutilized ITC, whether the Section 54 of the

refundable amount has been calculated correctly CGST Act read with
by the officer? Rule 89(4) of the
CGST Rules.
27 Whether refund has been restricted to the ITC as Para 5 of Circular
per those invoices, details of which are uploaded No. 135/05/2020-
by the supplier in FORM GSTR-1 and are GST dated
reflected in FORM GSTR-2A of the applicant. 31.03.2020 and dated
14.06.2022
28 Whether refund has been restricted to the ITC as Circular dated
per those invoices, details of which are uploaded 14.06.2022
by the supplier in FORM GSTR-1 and are
reflected in FORM GSTR-2A of the applicant in
terms of Circular No. 135/05/2020-GST dated
31.03.2020.
29 Where the export of goods or services is done Rule 96A of CGST
without payment of IGST, whether the Tax Payer Rules 2017 read with
has furnished a bond or LUT and whether the para 44 of Master
same has been properly mentioned in the claim? Circular No.
125/44/2019-GST
dated 18.11.2019
30 In case of any amount erroneously refunded or in Para 15, 16 & 20, 21
case of rejection of any refund claim of unutilized of Board’s Master
/accumulated ITC due to ineligibility of the ITC: Circular No.
i) Whether the said amount has been entered by 125/44/2019-GST
the officer in the electronic liability register of the dated 18.11.2019
applicant through issuance of FORM GST DRC-
07.
ii) Whether any amount, in case of refund of
unutilized/accumulated ITC, rejected by the officer
is re-credited to the Taxpayer by issuing Form
PMT-03? If so, whether an undertaking is obtained
from the Tax- Payer stating that no appeal will be
filed against such transaction
Specific checks in case of Refund on account of Deemed Exports
31 a. In cases of refund of the tax paid on deemed Para 41 of Board’s
exports, whether the necessary documents as Master Circular No.
specified under notification No. 49/2017-CT 125/44/2019-GST
dated 18.10.2017 including an undertaking to dated 18.11.2019.
be given by the supplier to the effect that the
recipient shall not claim the refund and shall
not claim any ITC on such supplies have been
verified ?
b. In case the refund is filed by the recipient,
whether an undertaking to be furnished by him
stating that refund has been claimed only for
those invoices which have been detailed in
statement 5B and he has not availed ITC on
such invoices, have been verified?
Specific checks in case of Refund of ITC on account of Inverted Duty Structure
32 Whether in case of claim of unutilized ITC in case Section 16 and
of export of goods and in case of Inverted duty Section 17 of CGST
Act, 2017

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structure, whether eligibility of ITC is being

checked as per section 16 and section 17 of CGST
Act, 2017. (For e.g., in case of export of goods,
refund of unutilized ITC of only inputs and input
services is allowed and not of capital goods) and in
case of inverted duty structure, refund of
unutilized ITC of only inputs is allowed and not of
capital goods and input services.
33 In case of refund on account of 'Inverted Duty Section 54 of the
Structure', whether the refundable amount has CGST Act read with
been calculated correctly by the officer? Rule 89(5) of the
CGST Rules.
34 In case of refund on account of 'Inverted Duty Section 54(3) r/w
Structure', whether the input services and capital Section 59 (c) of the
goods are included in the calculation of Net ITC or CGST Act. Para 53
not? of Board’s Master
Circular No.
125/44/2019-GST
dated 18.11.2019
35 In case of any amount erroneously refunded or in Para 15, 16 & 20, 21
case of rejection of any refund claim of unutilized of Board’s Master
/accumulated ITC due to ineligibility of the ITC: Circular No.
i) Whether the said amount has been entered by 125/44/2019-GST
the officer in the electronic liability register of the dated 18.11.2019
applicant through issuance of FORM GST DRC-
07.
ii) Whether any amount, in case of refund of
unutilized/accumulated ITC, rejected by the officer
is re-credited to the Taxpayer by issuing Form
PMT-03? If so, whether an undertaking is obtained
from the Tax- Payer stating that no appeal will be
filed against such transaction
36 Whether refund has been restricted to the ITC as Para 5 of Circular
per those invoices, details of which are uploaded No. 135/05/2020-
by the supplier in FORM GSTR-1 and are GST dated
reflected in FORM GSTR-2A of the applicant . 31.03.2020 and dated
14.06.2022
Specific checks in case of Refund filed by Merchant Exporter
37 Whether conditions as specified under Notification Rule 89 (4B) of
40/2017- Central Tax (rate) have been fulfilled in CGST Rules ,2017
case of a Merchant Exporter filing for refund? r/w paras 57 and 59
of Master Circular
No. 125/44/2019-
GST dated
18.11.2019
General / Procedural and Preventive Checks
38 Whether the refund sanction/rejection orders Para 2.1.1 of Board’s
issued in RFD-06 are speaking orders and whether Instructions
the facts, quantification and reasons for no.03/2022-GST
sanction/rejection are discussed, which is required dated 14.06.2022
for review to examine legality and propriety of the
refund sanction/rejection orders.

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39 Whether post audit of refund orders is being done? Para 2.2.3 and 2.2.4
of Board’s
Instructions no.
03/2022-GST dated
14.06.2022.
40 Whether any appeal has been filed by the Section 107 of CGST
Department in case of refund order passed? If yes, Act, 2017
the said may be examined
41 Whether the review of refund orders is being Para 2.2.2 of Board’s
conducted in time bound manner as per the extant Instructions no.
provisions? 03/2022-GST dated
14.06.2022.
42 Whether any post audit cell has been created ? Para 2.2.4 of Board’s
Instructions no.
03/2022-GST dated
14.06.2022.
43 Whether any procedure for post audit in offline Para 2.2.5 of Board’s
mode been put in place? Instructions no.
03/2022-GST dated
14.06.2022.
44 For new registrants claiming refund, the following CBIC’s Notification
points may be checked: 62/2020 dated
a. Whether refund has been claimed within a very 21.08.2020 (Aadhaar
short period of registration? verification or
Physical verification
b. Whether any Physical verification or other of premises
extra verifications/additional documents (like mandatory for GST
bank statement, etc.) has been ordered and registration from)
conducted by the Division staff for any of the
refund applicants at any period of time.
45 Whether the refund claim has been processed as Preventive
per the category applied as mentioned in GST Checkpoint
RFD-01 i.e., whether it has been processed in the
same refund category as per refund application.
46 Whether it has been checked that refund claim for Preventive
the same period has not been filed in the same Checkpoint
category including any claim filed under 'Any
Other' Category.
47 a. Whether DGARM reports and alerts issued Preventive
by enforcement agencies/branches and SGST Checkpoint
authorities are taken into consideration while
issuing refund?
b. Is there any guideline/system/practice in place
for the same?
c. Whether any data has been maintained in the
Commissionerate/ Divisions with respect to the
fake ITC suppliers and recipients.
d. Whether any alerts about the taxpayers are
being circulated to the Divisions by
CCO/Commissionerate
48 Whether the bank account details mentioned in Preventive
the refund claim is same as that mentioned in Checkpoint
registration?
49 a. Whether any observation/para relating to Preventive

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 Directorate General of Vigilance, CBIC 28.06.2022

refund has been raised during any audit or Checkpoint

inspection carried out by various formations?
b. If yes, has corrective action been taken?
50 a. To check whether there is any case of any Preventive
inordinate urgency in passing of the refunds Checkpoint
applications.
b. Whether any refunds have been passed at very
late hours, (if any found) the reasons may be
ascertained and noted.
51 Whether anything unusual in application history Preventive
of Risky refund claimants has been observed? Checkpoint
52 Whether Division/Range jurisdiction of the refund Preventive
claimant has been changed by the ACL Admin? If Checkpoint
so, whether reasons for the same have been
recorded in writing.

4. Recommendation for Systemic Improvements:

Based on the thematic audit of existing procedures and practices related to refund in various
field formations within a zone, systemic improvements may be suggested by the Zonal Units
to DGoV. Best practices being followed by any field formation may also be highlighted for
standardization across all formations.

5. Report Timelines:

All Zonal Units after conclusion of thematic audit shall submit their report with
findings/observations to DGoV Hqrs within 15 days of the conclusion of Audit.

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