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Key Points related to Refund under GST | Raag Consultants

Posted by raagseo on August 12th, 2020

  1. A registered person has to make an application for claiming the refund before the expiry of two years from the relevant date.
  2. If a person claiming refund any balance in electronic cash ledger, he can claim that amount through file GST return under section 39.
  3. A specialized agency of the UN Organisation or any Multilateral Financial Institutions and organization notified under the UN Act,1947, Consulate or Embassy are entitled to claim refund of tax paid on input goods and services. They may make the application for claiming the refund before the expiry of 6 Months from the last day of the quarter.
  4. Registered person other than person claiming the refund of integrated tax paid on goods exported out of india may file an application GST RFD 01 through common portal
  5. Registered person claiming the refund has to attach the supporting evidence in Annexure I in FORM GST RFD 01. The list of supporting evidences are mentioned in the rules.

In addition to the above, the registered person has to make a declaration that the refund claiming by them shall not be passed to other person.

If the refund amount claimed by the registered person exceeds Rs. Two Lakhs, then it is necessary for the person to attach the Certificate in Annexure II in FORM GST RFD 01 from CA or CWA, who will certify that person claiming the refund shall not pass it to other person. If refund amount is less than Rs. Two Lakhs then there is no need to certify it from CA or CWA.

where the amount of tax has been recovered from the recipient, it shall be deemed that the incidence of tax has been passed on to the ultimate consumer.

  1. A registered person is allowed to claim the refund of unutilized input tax credit where the credit has accumulated on account of the rate of tax on the inputs being higher than the rate of tax on output supplies, other than nil-rated or fully exempt supplies
  2. In case of claiming of refund of the balance in electronic cash ledger, an acknowledgement in FORM GST RFD 02 shall be made available on the portal and also indicating the date of filing of claiming the refund and the time specified shall be counted from such date of filing.

In case of claiming the refund other than claim for refund from the electronic cash ledger, an application has been forwarded to the proper officer who shall, within a period of 15 Days scrutinize the application for its completeness and then will issue an acknowledgement in FORM GST RFD 02, also indicating the date of filing of claiming the refund and the time specified shall be counted from such date of filing.

  1. If the proper officer noticed some deficiencies, then he shall communicate such deficiencies in FORM GST RFD 03, requiring from the registered person to file a fresh application after rectification of such deficiencies.
  2. After doing the proper verification and scrutiny, maybe the proper officer ought to pass an order in GST RFD 04 within a period not exceeding 7 days from the date of Acknowledgement.
  3. Proper officer will issue the payment advice in FORM GST RFD 05 and will credit the refund amount in any bank account which has been provided at the time of registration.
  4. After proper verification and satisfying all the points, proper officer will sanction the refund in FORM GST RFD 06 mentioning the refund amount, after adjusting all the outstanding demand(IF any).
  5. If the full amount has been adjusted against the outstanding demand if any, then it shall be informed under FORM GST Part A RFD 07.

    If the proper officer is of the opinion that the refund amount is liable to be withheld, it shall be informed by passing the order in Part B of FORM GST RFD 07 along with the reason.
  6. If the proper officer is satisfied that, refund claimed ny the registered person is not admissible or not acceptable then he may issue an notice in FORM GST RFD 08 requiring from the registered person to reply in FORM GST RFD 09 within 15 days from the date of notice.

    After verifying the reply, the proper officer will issue the order in FORM GST RFD 06.

    No application for refund shall be rejected without giving the applicant an opportunity of being heard.
  7. Where any amount claimed as refund is rejected, either fully or partly, the amount debited, to the extent of rejection, shall be re-credited to the electronic credit ledger by an order made in FORM GST PMT-03.
  8. If any tax is ordered to be refunded, then it shall be refunded to the registered person within 60 days from the date of receipt of application. If it is not refunded within specified time then interest not exceeding 6 % as may be specified has been paid along with refund amount from the date of receipt of application till the date of payment of refund.
  9. Specified person as mentioned in point no. 3, they may claim the refund of the taxes in FORM GST RFD 10 once in a quarter.
  10. In case of Refund of IGST paid on goods exported out of india, the shipping bill filed by the exporter shall be deemed to be an application for refund of IGST paid on such goods. Refund on such goods shall be processed only when

    Person in charge of the conveyance carrying the goods has filing the export manifest or export report which containing the number and date of shipping bills.

    The exporter has filed the valid GSTR 3 or GSTR 3B, as the case may be.

    The exporter has filed all the export invoices in GSTR 1, which is automatically has been forward to the custom department. The department will give confirmation that goods mentioned in the invoices are exported out of india. After receipt of the confirmation of filing the valid GSTR 3 or GSTR 3B, custom department shall process the claim of refund and directly credited into the bank account.
  11. If an exporter availing the option to export the goods out of india without payment of IGST, shall before the export file a bond or letter of undertaking in FORM GST RFD 11 binding himself to pay the tax along with the interest within a period of

    15 days after the expiry of 3 months(or such further period as may be allowed), from the date of invoice of export, if the goods has not been exported out of india.

    15 days after the expiry of 1 year(or such further period as may be allowed), from the date of invoice of export, if the payment of services has not been received by the exporter in convertible foreign exchange.

This content is written by Rahul Grover, who is a content writer of Raag Consultants.

Also See: Refund Provisions, Raag Consultants, Key Points, Gst Registration, Gst, Refund, India

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