<p><span>The Government of India has issued clarifications on various refund-related issues under the GST regime. The key highlights from Circular No. 94/13/2019-GST are as follows:</span></p><ol start="1"><li><span><strong>Reversal of Accumulated Input Tax Credit (ITC)</strong>:</span><ul><li><span>Registered persons who have reversed accumulated ITC required to be lapsed can claim refunds under the category "any other" in FORM GST RFD-01A. Proper officers will calculate the admissible refund amount as per rule 89(5) of CGST Rules, 2017, and request taxpayers to debit the amount from their electronic credit ledger through FORM GST DRC-03 before issuing refund orders.</span></li></ul></li><li><span><strong>Interest on Late Reversals</strong>:</span><ul><li><span>If registered persons reverse ITC through FORM GSTR-3B or FORM GST DRC-03 after the due date, they are liable to pay interest under Section 50(1) of the CGST Act. Refunds for unutilized ITC due to an inverted tax structure will be granted only after interest is paid and the credit is reversed.</span></li></ul></li><li><span><strong>Merchant Exporter Refunds</strong>:</span><ul><li><span>Merchant exporters claiming refunds of unutilized ITC on zero-rated supplies without payment of tax must apply under the category "any other" and submit all required supporting documents.</span></li></ul></li><li><span><strong>Handling Deficiency Memos</strong>:</span><ul><li><span>When a deficiency memo is issued, claimants must resubmit the refund application manually in FORM GST RFD-01A after correcting deficiencies using the same ARN.</span></li></ul></li></ol>