Tamil Nadu Government issued instructions on the Standard Operating Procedure for Faceless Refunds

The Tamil Nadu government has issued an instruction on the Faceless Refund Standard Operating Procedure.

During a discussion with the Joint Commissioners (Territorial) on the introduction of faceless refund, they raised various concerns that had arisen since the circular released in the reference cited on the method for faceless refund, which will be implemented on October 4, 2027.

The following instructions are offered as an update to the method for faceless refund in order to address those concerns and to conduct the faceless refund in a smooth and hassle-free manner. “Even in the case of acceptance of rejection by the taxpayer, PO-1 shall recommend for personal hearing,” according to Scenario-3 in paragraph 4.2 of the relevant circular.

“When the taxpayer accepts the rejection of a refund amount claimed in writing to the PO-1, it tantamounts to adhering to the principle of having heard the taxpayer because the taxpayer had already been put on notice by the PO-1 for a refund amount rejection with reasons, and his acceptance of such rejection was given in writing.” PO-1 will give orders in certain situations and will not delegate responsibilities to PO-2. With effect from October 27, 2021, this has been put into production. Furthermore, the PO-1 is in charge of issuing refunds in cases where the refund is totally authorised, partially allowed and accepted by the taxpayer, or fully disallowed but accepted by the taxpayer, and thus the transfer of responsibility to PO-2 is decided by the PO-1 depending on the facts of the case.”

The timetable for issuing refunds for zero-rated supplies and refunds for non-zero-rated supplies is enclosed to ensure strict adherence to the overall time restriction of 60 days from the date of receipt of the refund application, as stipulated in section 54(7) of the TNGST Act, 2017.

The circular stated, “The JCs territorial are required to issue sufficient directions to their proper officer to properly implement the faceless refund pilot module without any prejudice to the taxpayer.”

To Read The Circular Download PDF Given Below: