GST Refund Claim

GST refunds apply to taxpayers who make additional GST payments in the form of taxes, interest, fines, fees, and more. For refund procedures, taxpayers must use the GST RFD-01 form as needed. To submit a FORM GST RFD-01, an individual can enrol in the GST Common Portal, GST Facilitation Center, or Registered Organization. 

Claiming GST Refund

According to Section 54 of the GST Act, taxpayers may need to apply for a GST refund in the following situations: 

Taxes paid on the supply of zero-rated goods or services 

Export of goods or services 

Delivery to SEZ units and SEZ developers 

Refund of taxes on the supply of goods considered to be exports

Tax refunds for purchases from UN, embassies, etc. 

Refunds in accordance with the decisions, judgments, orders, or instructions of the Appeals Commission, the Court of Appeals, or other courts 

Refund of input tax deduction due to inverted duty structure

Finalization of provisional assessment

Refund of pre-deposit

Overpayment due to error 

GST refunds to foreign tourists who paid for goods in India and shipped abroad upon departure from India 

Refund of taxes paid on advances against for which goods or services were not provided Refunds based on the issuance of vouchers.

Refunds for CGST and SGST are paid by treating the supply as domestic supply and then holding it as interstate supply, or vice versa.

GST Refund Process 

GST law has standard procedures for processing  GST refund claims across India. Taxpayers must submit all GST refund applications in the standard form online on the Common GST  Portal. The person must also file a monthly tax return to claim the refunded credit balance. When submitting a refund request, confirmation of receipt of the refund request will be provided within 14 days of receipt of the refund request.

After receiving a refund request, the agent concerned must notify the status of the claim within 14 days. If there are any omissions in the application, the GST refund application will be returned to the applicant along with the list of omissions and the applicant can re-fill the application. If there are no errors or omissions, a claim for a GST refund, if included in the order, must be made within  60 days of receipt of the request. Agents are also not allowed to issue shortfall notes after the 14-day period they are required to process a GST refund claim.

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Interest Payable

If the taxpayer exceeds the above deadline or mandatory deadline, he/she will be obliged to pay interest and refund after 60 days of the payment date. At its meetings on May 18 and 19, 2017, the  GST Council recommended interest rates of 6% and 9%, respectively. In any case, if the taxpayer makes a prepayment of the refund request before the appealing authority,  interest will be accrued from the date of the payment. 

Procedure for Filing Refund Request

Taxpayers may request a refund of taxes, interest, fines, fees, or other amounts paid by taxpayers by submitting an application electronically on FORM GST RFD01 through the GST Common Portal or the GST Facilitation Center. increase. However, if the refund is related to the balance of the electronic ledger, the taxpayer will use it to request a GST refund when filing the relevant tax period declaration in FORM GSTR3, FORM GSTR4, or FORM GSTR7. 

Documents Required

GST Refund Claim

Statement of Relevant Invoices

To apply for a GST refund, the applicant must hold and submit the appropriate documents. The invoice statement related to the invoice must be submitted with all GST refund requests. According to  GST rules, taxpayers must keep invoices submitted by taxpayers for at least 7 years. 

For Export of Services 

For refunds of exports of services, taxpayers are required to present the receipt of the relevant bank certifying the receipt of payment in foreign currency. 

For Delivery to SEZ Units

If the supplier is requesting a GST refund from an SEZ unit, the data subject must provide confirmation from the appropriate officer to prove receipt of such goods/services related to the SEZ. This procedure also requires a declaration from the SEZ entity that the tax credit paid by the supplier will not be charged. However, if the parties apply only for a refund of the accumulated input tax credit,  a statement with an invoice must be attached to the application. 

Refund on Account of Judgement

In the case of a  GST refund request under an order or judgment of the appellate authority or court, the reference number of the order that gives rise to the refund must be submitted with the GST refund request. 

Claiming Refund for Unjust Enrichment

If the bar of unjust enrichment is exceeded and a refund of less than 2 lakhs is requested, the taxpayer must file a self-assessment stating that the accrued tax will not be passed on to another person. 

Chartered Accountant Certificate

A certificate from a chartered accountant or cost calculator must be provided for claims over Rs 2lakhs However,  if the GST claim is a tax-exempt supply, an accumulated input tax credit claim, or an incorrect tax (integrated tax and state tax instead of central tax and vice versa), or if the supply is not made, or a refund voucher been issued.