GST Refund Claim cannot be Allowed If Not corroborated by Documentary Evidence: Jharkhand HC

Sep 12, 2022 | Blog, News, Refund Issues | 0 comments

Facts of the Case:

The petitioner, M/s CTC (India) Private Limited is a 100 percent export oriented unit, exporting its products to countries like USA, China, Germany and other countries. The petitioner filed an application for refund of accumulated CGST, SGST and IGST credit for the period of January, 2018 in the prescribed Form-GST-RFD-01A along with supporting documents.

Department Contentions:

The department observed that the petitioner while filing the GSTR-3B return of Input Tax Credit for the month of January, 2018; inadvertently, missed out to mention the zero rated supplies under the outward taxable supplies (zero rated) tab in the said return and instead mentioned the same to be “zero”. However, the said amount of zero rated supplies has been correctly shown in GSTR-1 return of outward supplies against export invoices.

Also, in the instant case such documentary or other evidence which was necessary to substantiate the claim of the assesse was not furnished before the Appellate Authority. In other words, the assesse could not provide any such corroborative evidence in the form of documents to substantiate its claim of zero rated supply so that its claim could be validated.

On the basis of the said mistakes, the refund claim was rejected by the department.

Related Topics : GST on online gaming industry, lottery and casinos

Petitioner Contentions:

The petitioner argued before the Court that the order rejecting refund was passed without considering the detailed reply by the petitioners and the department have failed to take into account the fact that the definition of adjusted total revenue as provided under Rule 89 (4) of the Central Goods and Services Tax Rules, 2017 specifically excludes the exempted supplies and the claim of the petitioner for refund falls under exempt supplies as per Section 2(47) of the Central Goods and Services Tax Act, 2017.


The law is very clear that merely claiming any refund on the basis of averments would not suffice unless and until the said claim of any assesse is corroborated by documentary evidence. In the instant case, the petitioner is making claim without furnishing any documentary evidence to support their contention.

Confirming the order denying refund, the Court held that “From the appellate order it also transpires that the Appellate Authority has duly considered the Circular No.37/11/2018-GST dated 15.3.2018 which is related to a refund claim on account of export of goods without payment of tax and held that the same is possible only on verification of invoices. At the cost of repetition, since the petitioner fails to substantiate its claim of refund by giving documentary evidence either before the assessment proceeding or before the appellate authority; his claim for refund has been rejected.

The refund order has been passed against the petitioner.

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