Section 48 of the Revised Model GST Law provides for refund of un-utilized input tax credit to exporter of goods/ services.
Under original Model GST Law, 80% upfront refund within sixty days sanctioning clause was inserted i.e. on provisional basis subject to documents verification. This limit has been revised to 90% in the new draft.
It means that if an exporter files refund of say INR 100, tax authorities would provisionally pay INR 90 within 60 days of application. However, the verification of all the requisite documents would happen and then remaining amount will be refunded.
After verification, in case it is found that eligible refund is less than provisionally sanctioned i.e. 90, then the excess refund will be recovered from the tax payer.