One of the primary conditions which are put in front of all UIN entities to claim this refund is, that they need to file invoice level data in the GSTR 11 form on the common GST portal. However, some common discrepancies were noticed by GST authorities while processing these refund applications. In order to reduce these discrepancies, the CBIC issued certain advisory notifications regarding GST Refunds last month, one if which was for UIN entities – which we will discuss in this blog.
UIN Entities – Things to Note
As per the CGST rules, it is mandatory to report the “Place of Supply” for every invoice on which refund is applied for, in Form GSTR 11. However, many UIN entities, while filing their invoice data, were reporting their place of supply as the State where they are registered instead of the place of supply as reflected in the concerned invoice.
For e.g. it was observed that Embassies registered in New Delhi were consistently declaring their place of supply as “New Delhi”, even if the hotel service was consumed in West Bengal, whereas the place of supply should have rightfully been West Bengal.
Why this becomes very important is – under the GST law, the place of supply determines the chargeability of CGST / SGST or IGST on a particular invoice. Generally, if the location of the supplier and the place of supply are in the same State, then CGST + SGST is charged, and if the location of the supplier and the place of supply are in separate States, then IGST is charged.
In conclusion, it is advised, that while reporting the place of supply in Form GSTR 11 and charging of CGST / SGST or IGST on a particular invoice, the details need to be entered exactly as per the details mentioned in the invoice issued by the supplier of goods or services. Any wrong reporting of the invoice level data in the GST returns or in the invoice submitted, may lead to delay in processing or even rejection of GST refund claims for UIN entities.