What is the procedure for claiming refund? How is the refund application disposed off?
What is the procedure for claiming refund? How is the refund application disposed off?
Ans.
Procedure for Claiming Refund of Tax
An application for refund of tax has to be supported by prescribed documents evidencing facts that the refund is due to the applicant.
Requirement of documents for filing claim for refund of tax
The application shall be accompanied by any of the following of documentary evidences:
(1) Declaration to the effect that the Special Economic Zone unit or the Special Economic Zone developer has not availed the input tax credit of the tax paid by the supplier of goods or services or both.
(ii) A statement containing the number and date of invoices regarding receipt of services in a case where the refund is on account of supply of services made to a SEZ unit or a SEZ developer.
(iii) A statement containing the number and date of invoices goods admitted in case of supply of goods made to a SEZ unit or a SEZ developer.
(iv) A statement containing the number and date of shipping bills or bills of export and the number and the date of the relevant export invoices, in a case where the refund is on account of export of goods.
(v) A statement containing the number and date of invoices and the relevant Bank Realisation Certificates or Foreign Inward Remittance Certificates, as the case may be, in a case where the refund is on account of the export of services.
(vi) Reference number of the order and a copy of the order passed by the proper officer or an appellate authority or Appellate Tribunal or court.
(vii) Reference number of the final assessment order and a copy of the said order in a case where the refund arises on account of the finalisation of provisional assessment.
(viii) Statement containing the number and the date of the invoices received and issued during a tax period in a case where the claim pertains to refund of any unutilised input tax credit.
(ix) Statement containing the number and date of invoices where the refund is on account of deemed exports.
(x) Statement showing the details of the amount of claim on account of excess payment of tax.
(xi) Statement showing the details of transactions considered as intra-State supply, but which is subsequently held to be inter-State supply.
(xii) Declaration to the effect that the incidence of tax, interest or any other amount claimed as refund has not been passed on to any other person, in case where the amount of refund claimed does not exceed Rs. 2,00,000.
An applicant other than persons specified (i.e., a specialised agency of the United Nations Organisation, etc.) shall file an application in Form GST RFD-01, electronically, through the Common Portal. Claim for refund relating to balance in the electronic Cash Ledger may be made through the return for the relevant tax period.
Refund of Tax [Sec. 54, CGST Act, 2017]
Refund of Tax to Taxpayer
(1) Under the GST, export and supply to SEZ developer/unit have been considered as zero-rated supplies. However, the inputs and input services shall be purchased only after payment of GST. Therefore, refund arises to the exporters/SEZ developers/units due to tax paid by them on inputs and input services exported as such or inputs or input services used in the goods and/or services exported out of India.
(2) Refund of tax on the supply of goods regarded as ‘Deemed Exports’.
(3) Refund of unutilised input tax credit, subject to certain conditions.
(4) Payment of pre-deposit amount as a condition for entertainment of appeal, which is ultimately allowed in the favour of the taxpayer thus, resulting in refund of the pre-deposit amount.
(5) Refund of tax paid on inward supplies to embassies, diplomats, etc.
(6) Payment of tax wrongly as IGST in lieu of (CGST + SGST) or vice-a-versa subject to prescribed conditions.
Refund of Unutilised Input Tax Credit
A taxable person may claim refund of unutilised input tax credit at the end of any tax period, where:
(1) Unutilised input tax credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output on supplies (other than nil-rated and fully exempt supplies) except supplies of goods or services or both as may be notified by the Government.
(2) Unutilised input tax credit pertains to zero-rated supplies made without payment of tax, i.e., export of goods and/or services without payment of tax, or supply of goods and/or services to a SEZ developer/ unit.
Refund of Tax Related to Export
Credit of input tax may be availed for making export zero-rated supplies, to with standing that such supply may be an exempt supply of non-creditable goods and/or services.
Two options are available to such persons:
(1) Export under Bond or Letter of Undertaking, subject to prescribed conditions, without payment of IGST and claim refund of unutilised ITC,
(2) Export, subject to prescribed conditions, on payment or IGST and claim refund of IGST paid on goods and/or services.
Refund of Tax Related to SEZ Developer/SEZ Unit
Credit of input tax may be availed for making zero-rated supplies, not withstanding that such supply may be an exempt supply of non creditable goods and/or services. Therefore, SEZ developer/unit shall be eligible, to claim a refund of IGST paid by the registered taxable person on such supply.
Refund of Tax to United Nations Organisation, Embassies, Diplomats [Sec. 55, CGST Act]
The Central/State Government may, by notification, specify:
Any specialized agency of the United Nations Organisation or any Multilateral Financial Institutions and Organisations notified under the United Nations (Privileges and Immunities) Act, 1947, Consulate, or Embassy of foreign countries, and who shall, subject to such conditions and restrictions as may be prescribed, be entitled to claim a refund of taxes paid on the notified supplies of goods or services received by them.
Described situations of refund under GST are only indicative and not exhaustive.
