GST REFUND

GST REFUND


Introduction

GST Refund includes refund of tax paid on zero-rated supplies of goods or services or input or input services used in making such zero-rated supplies or refund of tax on the supply of goods regarded as deemed exports or refund of unutilized input tax credit as provided under section 54(3).

Refund can be claimed in the following cases.

  • Export of goods or services or both on the payment of GST.
  • Supplies to SEZs units and developers.
  • Deemed Exports.
  • Refund of taxes on purchase made by UN or embassies etc.
  • Refund arising on account of judgment, decree, order or direction of the Appellate Authority, Appellate Tribunal or any court.
  • Refund of accumulated Input Tax Credit on account. of inverted duty structure
  • Finalization of provisional assessment.
  • Excess payment due to mistake.
  • Advance Tax paid by a Casual Taxable Person or Non-resident Taxable Person.

Eligibility

A registered person may claim refund of any unutilized input tax credit at the end of any tax period.


Procedure for GST Refund

File an application in the Form GST RFD 01 on the online portal along with the requisite documents.

An acknowledgement number would be shared with applicant via sms or email, once the application is filed electronically in GST RFD 02.

After processing of the documents without any error, the GST refund will be sanctioned within 07 days from the date of acknowledgement.

Further, order of refund will be passed in GST RFD 06 and the payment will be issued in GST RFD 05 post which it will be automatically credited.


GST Refund in case of Zero Rated Supply

Provisional 90% of the refund shall be paid by the Proper Officer within 7 days of application, if he considers that prima facie refund is due to the applicant. The remaining 10% can be refunded later after due verification of documents furnished by the applicant.


The above procedure is subject to the following conditions

  • The person claiming refund has, during any period of five 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 Rs 2.5 crores.
  • No proceedings of any appeal, review or revision are pending on any of the issues which form the basis of the refund and if pending, the same has not been stayed by the appropriate authority or court