CBIC issues important Instructions regarding the Provisional sanction of refund claims on the basis of identification and evaluation of risk by the system
Subject: Provisional sanction of refund claims on the basis of identification and evaluation of risk by the system – reg.
The 56th meeting of the Goods and Services Tax Council held on 3rd September 2025, recommended amendment in rule 91(2) of CGST Rules, 2017 to provide for sanction of 90% of refund claimed on provisional basis by the proper officer on the basis of identification and evaluation of risk by the system. In addition, a proviso has been inserted in rule 91(2) to provide that, on case-by-case basis, where the proper officer is of the opinion that in a particular case, provisional refund should not be granted, he can, for reasons to be recorded in writing, instead of grant of refund on provisional basis, proceed with detailed examination of the application. Further, vide notification No. 14/2025-Central Tax dated 17.09.2025, category of registered persons has been notified under section 54(6) of the CGST Act, 2017, who shall not be allowed refund on provisional basis for zero rated supplies.
2. In order to ensure uniformity in the implementation of the provisions of the Act across field formations and to streamline the process of GST refunds, the Board, hereby issues the following instructions with respect to processing of refund claims, filed with the proper officer, on account of zero rated supply of goods or services or both……