Refund of GST-Section 54
1.Refund Under GST (Section 54 of GST Act):
Refund application under GST to be filled before the expiry of 2 years from the relevant date.
Relevant dates means:-
| In case of Goods export | Exported through by Sea or air:- Ship or Aircraft Leaves India Export through by Land:- Pass the Frontier Export through Post:- Dispatch the goods by Post office concerned to a place outside India |
| Deemed export of Goods | Date on which return relating to such deemed export is furnished |
| Export of Services to outside India | Date of :- Receipt of the payment in convertible foreign exchange, where supply of services had been completed prior to the receipt of such payment. Or Issue of invoice, where payment for the services had been received in advance prior to the date of issue of the invoice. |
| Tax refundable due to the judgement, decree, order or direction of Appellate Authority, Appellate Tribunal or any court | Date of communication of such Judgement, decree, order or direction |
| Unutilised Input tax credit (ITC) | End of the financial year in which such claim for refund arise. |
| Tax is paid under provisionally under this Act or rules | Date of adjustment of tax after the final assessment thereof. |
| In the case of a person, other than the supplier | The date of receipt of goods or services or both by such person |
| In any other case | The date of payment of tax |
- 2. In case of specialized agency of UNO or Multilateral Financial Institution and organisation notified under united nation act, Consulate or Embassy of foreign Country or any other class of person as notified may made an application before the expiry of Six month from the last day of the quarter in which such supply was received.
- Refund of unutilised ITC can be claim only for the following situations:-
. Zero rated supply without payment of tax.
. Where rate of inputs is being higher than rate of tax output supplies.
- Application shall be comprising the following points:-
. The incidence of tax and interest had not been passed to another person.
. Such other documents as may prescribed.
. After satisfaction of the proper officer, whole or part of the amount so claimed for refund shall be credited to the Consumer Welfare Fund.
. In case of Zero rated supply the proper officer refund on provisionally basis 90% of the total amount so claimed for refund and balance amount to be paid on final settlement.
. The proper officer shall issue an order for refund within sixty days from the date of receipt an application.
- The refundable amount shall be paid to the applicant directly instead of being credited to the Consumer Welfare Fund:-
(a) Zero rated supply.
(b) Tax rate of input being higher than the tax rate of outward supply.
(c) Refund of tax in pursuance of section 77 of GST Act.
(d) Refund of tax paid on a supply which is not provided either wholly or partially and for which no invoice has been issued or where refund voucher has been issued.
(f) If tax and interest or any other amount paid by the applicant and if he had not passed the incidence of such tax and interest to any other person.
(e) Specific notified person.
- Refund shall be given by the proper officer:-
. After adjustment of the tax, interest, penalty, fees or any other amount which is liable to pay under this Act or under existing law.
. After furnishing the return and paid the tax, interest, penalty, fees or any other amount.
7.Where an order for refund is subject matter of an appeal or proceeding is pending and Commissioner is of the opinion that grant of such refund adversely affect the revenue in the said appeal then he may withhold the refund till such time as may be prescribed.
- If an appeal or proceeding in favour of the taxable person then that taxable person is entitled to take the interest at such a rate not exceeding six percent.
- The amount of advance tax which is deposited shall not be refunded to the Non-Resident taxable person or Casual taxable person until he furnished all the returns.
- If an amount of refund is less than of Rs.1000 then no refund shall be given to the taxable person.