As per instruction No. 03/2022-GST, POST AUDIT of GST refund will be conducted as per the specified instructions/procedure issued by the GST Policy Wing of CBIC.

The specific instruction for POST Audit of GST Refund has been issued by the Board because a lot of different practices is following by the field formation/officers regarding sanctions, review and post-audit of Refund Claims. In few Cases, Speaking Order is issued by few Commissionerates but majorly skipped that detailed speaking orders. Similarly, in case of review and post audit, different practices are being followed by the field formations. Therefore, its decided to issue specific instruction in regards to Sanction, Review and Post Audit.

As per Circular 17/17/2017-GST dated 15/11/2017, NO pre audit of Refund order is requiredto be carried out. But as per section 107 (2) of CGST 2017, Commissioner may review any decision or order, including and order of refund, with respect to its legality or propriety. Furtehr, He may also direct any officer subordinate to him to file an appeal against the said decision or order within 6 months of the date of communication of the said decision or order.

Detailed guidlines for processing of refund claims in GST have been issued by the board vide circular no. 17/17/2017, 15/11/2017and 18/11/2019 to ensure uniformity. Still different procedures are followed by the field formation/officers. In order to ensure uniformity in issuance of Detailed Speaking Order, proper point to point instructions has been issued in this instruction order. Therefore the following details should be cover in detailed speaking order in Form RFD 06 by the concerned issuing officer:

Post-Audit and Review

Post Audit of Refund claims would be conducted for claims amounting to Rs 1 Lacs or more by the Post Audit Cell. Its also included that the same crieteria (amounting of Rs 1 lacs or more) will be applicable till further instructions. Therefore, the crieteria of selectio of Post-Audit may be change in near future.

Post Audit would be concluded within 3 months from the date of RFD 06 and the findings of post audit should be communicated to the review team for further action in theses 3 Months time period.

The review team would complete its review at least 30 days prior to the Appeal filing time limit u/s 107(02) i.e. within 6 Months from the Date of Refund Order.

As the functionality for conducting post audit online is not developed on ACES GST Portal, post audit of refund orders may be conducted in offline mode.

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