GST refund

When the GST amount is paid more than the GST liability a situation arises of claiming of GST refund. The method of claiming a refund is to make a uniform to avoid confusion.

When the refund can be claimed

There are following Stéroïdes oraux cases where a refund can be claimed are as under:

  • Deemed Export
  • Refund of Unutilized Input Tax Credit
  • Refund from Generation / Production of tax-free supplies/Manufacturing. 
  • Excess payment made due to mistake 
  • Provisional Assessment
  • Refund for Tax payment on transactions by UN bodies, forces canteens, etc.
  • Refund of pre-deposit in case of Appeal.
  • Excess balance in ECL
  • Export with payment of IGST.
  • Supplies made to the SEZ unit.
  • Any other refunds

Calculation of GST refund

For example.

Mr. X GST liability for September is Rs 10000. But due to mistake, Mr. X made a GST payment of Rs 100000

Now Mr. X has made an excess payment of Rs 90000 which can be claimed as a refund by him.

Time limit for claiming the refund is 2 years from the date of payment.

Claim of GST refund

The application for a refund, in Form RFD 01, has to be made within 2 years from the relevant date.

Certification of the form by a Chartered Accountant is also required.

An acknowledgment, in Form RFD-02, will be auto-generated and sent across through an email and an SMS. If any deficiencies found in the refund application, then Form RFD-03 shall be sent to the taxpayer.

The person filing a refund claim is a United Nations’ body, Consulate, or a foreign embassy, then the application to be filed within 90 days from the end of the quarter for which the goods or services were procured. The application should be made in Form RFD-10.

Scrutiny of the refund application

It will take around 30 days to process a refund application. Where the claim of refund exceeds a specified amount, then the same shall be subjected to an audit process. Certified may be required by a Chartered Accountant for the above declaration.

 Refund Order

When the payer claims a refund, then the associate authorized officer will issue a tentative refund order in type RFD-04 of the associate quantity of 90%of the refund claim.

 Such a tentative refund is created once the taxpayer:

Application of refund shall be processed within 60 days from the application date. If the details are true and correct, the authorized officer will then issue a final order in Form RFD-05 within 60 days from the application date. 

Important formsfor refund claims:

  • RFD-07: SCN for the complete rejection of a refund application
  • RFD-08: Payment advice
  • RFD-09: delayed payments, this is an order for interest on late payments.

Time Limit for Granting Refund

The refund order will be sanctioned within 90 days from the date of receipt of the complete application.

If the amount of refund is not refunded within the said time from the date of receipt of an application then interest at such rate as may be specified issued by the CG or SG on the recommendation of the Council and shall be payable in respect of such refund from the date immediately after the expiry of the due date till the date of refund of such tax.

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