When can provisional refund be granted under GST law. Also explain the procedure for grant of provisional refund.

Answer 2A(iv) Provisional refund of 90% of the amount claimed in case of zero-rated supply of goods or services or both [Section 54(6)]: The proper officer may, in the case of any claim for refund on account of zero-rated supply of goods or services or both made by registered persons, other than such category of registered persons as may be notified by the Government on the recommendations of the Council. refund on a provisional basis, 90% of the total amount so claimed. in such manner and subject to such conditions, limitations and safeguards as may be prescribed, and thereafter make an order under Section 54(5) for final settlement of the refund claim after due verification of documents furnished by the applicant. The remaining 10% can be refunded later after due verification of documents furnished by the applicant. Grant of provisional refund [Rule 91]: Conditions for grant of Provisional Refund [Rule 91(1)]: The provisional refund in accordance with the provisions of Section 54(6) shall be granted subject to the condition that the person claiming refund has during any period of 5 years immediately preceding the tax period to which the claim for refund relates, not been prosecuted for any offence under the Act or under an existing law where the amount of tax evaded exceeds 2.5 crore. Sanction of Provisional Refund [Rule 91(2)]: The proper officer, after scrutiny of the claim and the evidence submitted in support thereof and on being prima facie satisfied that the amount claimed as refund under Rule 91(1) is due to the applicant in accordance with the provisions of Section 54(6), shall make an order in FORM GST RFD-04, sanctioning the amount of refund due to the said applicant on a provisional basis within a period not exceeding 7 days from the date of the acknowledgement under Rule 90(1)/(2). However, the order issued in FORM GST RFD-04 shall not be required to be revalidated by the proper officer. E-payment of provisional refund [Rule 91(3)]: The proper officer shall issue a payment order in FORM GST RFD-05 for the amount sanctioned under Rule 91(2) and the same shall be electronically credited to any of the bank accounts of the applicant mentioned in his registration particulars and as specified in the application for refund on the basis of a consolidated payment advice. However, the payment order in FORM GST RFD-05 shall be required to be revalidated where the refund has not been disbursed within the same financial year in which the said payment order was issued. Disbursement of refund [Rule 91(4)]: The Central Government shall disburse the refund based on the consolidated payment advice issued as above.