REFUND CLAIM
UNDER EXPORT
If any additional GST has been paid or if there is an unused input tax credit, a person can claim a refund under Section 54 of the Additional GST paid by submitting an application online on the same. To ensure that the excess GST paid does not get blocked. Laws have been framed for quick release of GST refund.
Who can claim GST Refund?
GST refund claim can be filed in the following cases: -
1. Payment of additional GST due to mistake.
2. Exports of goods or services
3. Supplies to SEZ units and developers
4. Deemed exports
5. Pre-deposit refund
6. Refund of accumulated Input Tax Credit on account of inverted duty structure
7. Refund taxes purchased by UN or embassies.
8. Final form of provisional assessment
9. Refunds arising out of the judgment, judgment, order or direction of the Appellate Authority, the Appellate Tribunal or any other court.
10. Refund to international tourists of GST paid on goods in India and carried abroad at the time of their departure from India.
11. Refund on account of issuance of refund vouchers for taxes paid on advances against which, goods or services have not been supplied.
12. Refund of CGST & SGST paid by treating the supply as intra-state supply which is subsequently held as Inter-state supply and vice-versa.
How to claim GST Refund?
An application for GST refund will be filed online in Form GST RFD01 and will be filed within a maximum of 2 years from the date of application.
Once an application is submitted, it will be forwarded to the GST Officer, who will scrutinize the application for its completeness within 15 days of submission of the application and if the application is found to be complete in all respects, an acknowledgment will be made available to the applicant on the GST RFFD02 form through the GST website, i.e. gst.gov.in. Issued GST RFD02 clearly states the date the claim was filed for a refund and the time limit for the refund will be calculated from this date.
If any discrepancies are found in the GST refund application, the GST Officer will notify the applicant in Form GST RFD 03 through the GST website.
GST REFUND IN CASE OF EXPORT
90% refund of integrated GST paid on exports will be allowed within 7 days and the remaining 60 days.
GST refund is always available if the export of goods / services is done without submission of bond / LUT and IGST is paid on such exports.
If the export takes place after the submission of the Bond / LUT, no IGST is applicable. In such cases, refund of accumulated Input Tax Credit on expenses may arise.
The procedures and rules to be followed in respect of GST refund in respect of exports will remain the same as described above.
GST Refund in case of Exports without payment of IGST
Refund of input tax credit will be allowed in case of export of goods or services or on submission of bond / LUT without paying tax as per the following formula: -
Refund amount = (turnover of zero rated goods + turnover of zero rated supply of services) x net ITC / adjusted total turnover
Where,
1. “Refund amount” is the maximum allowable refund;
2. “Net ITC is the input tax credit received during the relevant period for inputs and input services;
3. “Zero rated services turnover” means the value of zero rated service for services rendered without paying tax under the bond or LUT
4. “Zero rated services turnover” means the value of zero rated distribution of services
5. “Adjusted Total Turnover” means turnover that excludes the value of excluded supplies other than supplies rated zero for the relevant period.
6. Relevant period means the period for which the application for refund has been submitted
GST Refund of Input Tax Credit
The GST refund of the input tax credit occurs in the following 3 cases: –
- The input tax credit is not used when the goods / services supplied are zero rated or exempt from GST.
- Where there is a higher tax rate on input goods / services and a lower tax rate on
GST Refund in case of Exports without payment of IGST
Refund of input tax credit will be allowed in case of export of goods or services or on submission of bond / LUT without paying tax as per the following formula: -
Refund amount = (turnover of zero rated goods + turnover of zero rated supply of services) x net ITC / adjusted total turnover
Where,
1. “Refund amount” is the maximum allowable refund;
2. “Net ITC is the input tax credit received during the relevant period for inputs and input services;
3. “Zero rated services turnover” means the value of zero rated service for services rendered without paying tax under the bond or LUT
4. “Zero rated services turnover” means the value of zero rated distribution of services
5. “Adjusted Total Turnover” means turnover that excludes the value of excluded supplies other than supplies rated zero for the relevant period.
6. Relevant period means the period for which the application for refund has been submitted
GST Refund of Input Tax Credit
The GST refund of the input tax credit occurs in the following 3 cases: –
- The input tax credit is not used when the goods / services supplied are zero rated or exempt from GST.
- Where there is a higher tax rate on input goods / services and a lower tax rate on output output goods / services.
- In case of partial reverse charge, the input tax credit cannot be fully utilized against the output tax.
In such cases the input tax credit refund will be allowed as per the following formula:-
Maximum Refund Amount = {(Turnover of inverted rate of supply of goods) x (Net ITC ÷Adjusted Total turnover} – Tax payable on such inverted rated supply of goods.
