OVERVIEW OF TYPES OR KIND OF GST REFUND

OVERVIEW OF TYPES OR KIND OF GST REFUND

TYPES OF GST REFUND

1. Refund of unutilized input decrease(ITC) on account of exports without payment of tax

A. The amount of refund shall be the smallest amount of:

• • Zero Rated Turnover/Adjusted Total Turnover * Net of ITC
  • Balance-standing in the Electronic Credit Ledger at the time of refund filing.
  • Balance in Electronic Credit Ledger at the topof period that refund is filed

B. The relevant date within the case of products shall be:

• • Where it is exported by sea or air, the date on which the ship or aircraft leaves India
  • Where-it is exported by land, the date on which such goods passes frontier
  • Where it is exported through Post, the date on which the despatch of productsby Post Office

C. The relevant date within the case of services shall be the date of:

• • • Receipt of convertible exchange or Indian rupees wherever permitted by the RBI, where services are completed before receipt of payment
    • Issue of invoice, where payment had been received before issue of invoice

D. In case of export of products, the shipping bill details as uploaded within there fund application in statement 3 shall be checked by the officer with ICEGATE. within the case of services BRC/ FIRC details shall be uploaded as an indication of receipt of payment

E. ITC paid on Capital Goods shall not be included in Net ITC for the aimof computing refund

F. Receipt of convertible exchange, or Indian rupees wherever permitted by RBI could be a precondition just in case of refund against export of services only and not within the case of products

G. The refund can not be denied whether or not LUT has not been furnished by the applicant on a timely basis and such delay are often condoned by the officer. Also if the applicant fails to export the products within a period of three months from the date of invoice, the jurisdictional commissioner may consider granting extension of your time limit for export

H. If there’s difference within the value of invoice and shipping bill, then lower of the 2 should be considered for the aim of refund

I. A taxpayer who has received goods at GST 0.05% and 0.10% under Notification 40/2017 and 41/2017 – Central rateand Integrated charge per unit respectively can export the products only against LUT then file refund under this category

2. Refund of tax paid in respect of export of services

1. Unlike the case of export of productswith tax (refer last paragraph of points to be considered for goods), refund within the case of export of services with payment of tax has to be filed separately
2. Details of the invoices and corresponding BRC/ FIRC shall be uploaded in statement 2
3. The relevant date remains the identicalas mentioned in above point

3. Refund in respect of unutilized ITC in relation to supplies made to SEZ Unit/SEZ Developer without payment of tax

A. The amount of refund shall be the smallest amount of:

• • Zero Rated Turnover/Adjusted Total Turnover * Net of ITC
  • Balance standing in the Electronic Credit Ledger at the time of refund filing.
  • the Balance standing in the Electronic Credit Ledger at the topof period that refund is filed

B. Refund shall be filed once the availabilityis admitted fully in SEZ for authorised operations as endorsed by the desired officer of the zone

C. The details of supply to SEZ shall be uploaded in statement 5

4. Refund of tax paid in respect of supplies made to SEZ Unit/SEZ Developer with payment of tax

A. Refund shall be filed once the provisionis admitted fully in SEZ for authorised operations as endorsed by the required officer of the zone

B. The details of supply to SEZ shall be uploaded in statement 4

5. Refund of unutilized ITC on account of accumulation thanks toinverted tax structure

A. The amount of refund shall be the smallest amountof:

• • • tax payable on such inverted rated supply
    • Balance standing in the Electronic Credit Ledger at the time of refund filing
    • the Balance standing in the Electronic Credit Ledger at the topof period that refund is filed

B. The supplier supplying goods to exporter at GST 0.05% and 0.10% as detailed above shall even beeligible to file refund during this category

C. ITC paid on Capital Goods and Input Services shall not be included in Net ITC for the aimof computing refund

E. If rate of tax has been reduced from upper rate to lower rate on any goods, the identicalshall not be eligible for refund during this case

F. The relevant date is that theday of the month of furnishing of the return under Section 39 for the amount during which such claim for refund arises

G. Details of inward and outward supplies together withcorresponding tax values shall be uploaded in statement 1A

6. Refund to supplier of tax paid in respect of deemed export supplies

A. For the aimof filing refund, duly signed copy of invoice by the recipient EOU or acknowledgement by jurisdictional tax officer about receipt of said deemed export supplies by the authorisation holder shall be needed

B. An undertaking that the recipient shall not claim ITC nor refund of tax charged in respect of such supplies

C. Details of outward supplies shall be uploaded in statement 5B

D. The relevant date is that thedate on which the return regarding such deemed exports is furnished.

7. Refund to recipient of tax paid in respect of the deemed export supplies

A. The amount of refund shall be the smallest amountof:

• • Net Input ITC of Deemed Exports
  • Balance standing in the Electronic Credit Ledger at the time of refund filing
  • the Balance standing in the Electronic Credit Ledger at the topof period that refund is filed

B. A declaration that supplier has not availed refund with relation tosaid supplies

C. The details of inward supplies shall be uploaded in statement 5B

8. Refund of excess balance as available in the Electronic Cash Ledger

• Balance lying in Electronic Cash ledger, which mightair account of excess challan payment or thanks to excess TDS deduction is claimed as refund under this category

9. Refund of excess payment of tax

Supporting documents to determine excessive payment of tax shall be uploaded with the refund application

10. Refund of tax paid on intra-State supply which is subsequently held to be inter-State supply and the other way around

The details of supplies wherein the Place of Supply has changed shall be uploaded within there fund application in statement 6 stating the initial Place of Supply considered together with tax paid and therefore the re-assessed Place of Supply with taxes

11. Refund in respect of assessment/provisional assessment/appeal/any other order

• Reference number and replica of the assessment / appeal / any order together with proof of payment of pre-deposit that refund is being claimed shall be uploaded
• Refund based on of any other ground or reason
• Any other refund case which isn’t included in any of the cases may be claimed during this category mentioning the specification and amount of refund at the portal

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