Refund Under GST (Section 54 of GST Act):-
- Refund application has to be filled electronically in the FORM GST RFD-1 by using the common portal either directly or from facilitation centre, notified by the Board or Commissioner.
- Refund application under GST to be filled before the expiry of 2 years from the relevant date.
- As per section 49, the balance in electronic Credit ledger or electronic cash ledger after payment of tax, interest, penalty, fees or any other amount payable under this Act or rules made thereunder may be refunded in accordance with the provision of section 54.
- In case of specialised 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.
- Supplies made to the Embassies or UN bodies will be taxable, which later on can be claimed for refund.
- Where amount of refund is less than 2 Lakhs rupees then it is not necessary to furnish any documentary and other evidences by the applicant. In this situation he may file a self declaration inwhich he certifying that he is not passed the incidence of such tax and interest to any other person.
- Where amount of refund more than of Rs. 2 Lakhs then applicant is required to submit a certificate from Chartered Accountant or a Cost Accountant to effect that the incidence of tax and interest not passed to any other person.
- Provisional refund to the extent of 90% of the amount so claimed on account of Zero rated supplies has to be given within 7 days from the date of acknowledgement of complete application for refund.
- In case of export of services detail of BRC is required to be submitted along with the application for refund.
- A Registered taxable person has an option to export the goods/ services without payment of IGST under Letter of Undertaking (LUT) or Bond and claim for refund of ITC.
- A Registered taxable person has an option to export the goods/ services with payment of IGST and claim for refund of IGST paid.
- The proper office shall issue an refund order within 60 days from the receipt of an application. If refund not sanctioned within 60 days, interest at the rate notified will have to be paid to the applicant.
- If any refund arising out of existing law then this refund shall be given in cash as per existing law and will not be available as ITC.
- The claim of refund will be sanctioned in Form GST RFD-06 and payment advice will be issued in Form GST RFD-05. The refund amount directly credited to applicants given bank account.
- If any deficiency found in refund claim then Form GST RFD-03 will be issued to the applicant through the common portal electronically requiring him to file a refund application by rectification of such deficiencies.
- If proper officer satisfied that claim is not admissible then he shall issue a notice in Form GST RFD-08 to the applicant. Applicant give an reply within 15 days by filling Form GST RFD-09 then after considering proper office may reject or accept the refund.
- Rate of Interest if refund amount not given on time:-
- Refund arises due to an order passed by adjudicating authority or Appellate Authority or Appellate Tribunal or Court: – Rate of interest not exceeding 9%.
- In any other cases:- Rate of interest not exceeding 6%.
- Following types of Form used in GST Refund :-
|GST RFD-01||Refund Application Form|
|GST RFD-03||Notice of deficiency on Application for Refund|
|GST RFD-04||Provisional Refund Sanction order|
|GST RFD-05||Payment Advice|
|GST RFD-06||Refund sanction/Refund order|
|GST RFD-07||Order for complete adjustment of claimed Refund|
|GST RFD-08||SCN for rejection of refund application|
|GST RFD-09||Reply to SCN for rejection of refund application|
|GST RFD-10||Refund application form for Embassy/International organisation.|