Taxpayers who have paid additional GST payments, such as taxes, interest, fines, and fees, may access these items. Refund requests must be made using the GST RFD-01 form by taxpayers. To submit FORM GST RFD-01, individuals must first register with the GST Common Portal, a GST Facilitation Center, or a Registered Organization.
Claiming GST Refund
Taxpayers may need to submit an application for a GST refund under the following circumstances, per Section 54 of the GST Act:
- 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
In India, the GST statute lays forth standardised processes for handling petitions for GST refunds. All requests for GST refunds must be submitted electronically using the necessary form through the Common GST Portal. To get the reimbursed credit amount, the individual must also submit a monthly tax return. Within 14 days of receiving the request, proof of receipt for reimbursement requests will be issued.
After receiving a reimbursement request, the agent has fourteen (14) days to inform the claimant in writing of the claim’s status. The application will be returned to the applicant with a list of any information that is missing if there is any, so they can complete it again. A claim for a GST refund, if included in the order, must be made within 60 days of receiving the request, assuming there are no mistakes or omissions. Shortfall notes cannot be issued by agents after the 14-day window for submitting a GST refund claim has passed.
If the taxpayer misses the aforesaid deadline or the mandatory deadline, he or she will be required to pay interest and get a refund after 60 days. The GST Council suggested interest rates of 6% and 9%, respectively, at its sessions on May 18 and 19, 2017. In any instance, if the taxpayer pays for the refund request in advance of the appeal authority, interest will be charged from the date of payment.
Procedure for Filing Refund Request
Taxpayers may submit an electronic application on Form GST RFD01 via the GST Common Portal or the GST Facilitation Center to request a refund of taxes, interest, fines, fees, or other amounts paid. When submitting the applicable tax period declaration in FORM GSTR3, FORM GSTR4, or FORM GSTR7, the taxpayer will use it to request a GST refund if the refund is linked to the electronic ledger balance.
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
The data subject must present certification from the competent officer to show receipt of such goods or services associated with the SEZ if the supplier is asking an SEZ unit for a GST refund. Additionally, the SEZ business must certify that the tax credit paid by the supplier will not be assessed in order for this process to proceed. However, a statement and invoice must be included with the application if the parties are just asking for a return of the accrued input tax credit.
Refund on Account of Judgement
The reference number of the order that gives rise to the refund must be included with the GST refund request in cases where the refund is being requested in accordance with an order or judgement of the appellate authority or court.
Claiming Refund for Unjust Enrichment
The taxpayer must submit a self-assessment declaring that the incurred tax will not be transferred to another person if the threshold of unjust enrichment is crossed and a refund of less than Rs. 2 lakh is requested.
Chartered Accountant Certificate
A certificate from a chartered accountant or cost estimator is required for claims over Rs. 2 lakhs. On the other hand, if the supply is not made, a refund voucher has been issued, the GST claim is a tax-exempt supply, an accumulated input tax credit claim, or an erroneous tax claim, all of these circumstances will apply (integrated tax and state tax instead of central tax and vice versa).