Table of Contents
Time Schedule for Filling of GST Refund Application
Punctual refund procedures are important for the best tax management since they open the door to trade by releasing restricted money.
The claim for GST Refund process is now completely online and scheduled under the GST regime, throwing the previously time-consuming and tedious procedure in the far behind.
Means of GST Refund
‘GST Refund’ has not been particularly defined in GST law However for Objective of section 54, GST refund has been stated to mean as, “GST refund includes GST refund of tax paid on zero-rated supplies of services or goods or both or on input services or inputs used in making such zero-rated supplies, or refund of tax on supply of goods regarded as deemed exports, or GST refund of unutilised ITC as provided under Section 54(3)”.
Who can claim GST Refund?
We can claim GST Refund in the following situations:
- GST Refund of accumulated ITC
- Refund on account of issuance of refund vouchers for taxes paid on advances against which goods or services have not been supplied
- Finalization of provisional assessment under GST law
- Refund of pre-deposit GST tax
- Export of Goods or services
- Refunds to International tourists of GST paid on goods in India & carried abroad at the time of their departure from India.
- Supplies to Special economic zones units and developers
- Deemed Export supplies under the indirect tax law.
- Refund of GST Taxes on purchase made by embassies or United Nations etc
- GST Refund arising on account of judgment, decree, order or direction of the Appellate Authority, Appellate Tribunal or any court
- Refund of Central Goods and Services Tax & State Goods and Services Tax paid by treating the supply as intra-State supply which is subsequently held as inter-State supply and vice versa
- Excess payment due to mistake
Relevant Date for GST Refund for Filling of GST Refund Application
As per GST law it is important that every claim for Goods and services tax refund is submitted within 2 years from the Relevant Date. The ‘Relevant Date’ under different situation can be mentioned here under as:
|
GST Refund Nature |
Relevant Date for GST Refund |
|
For zero-rated supplies to SEZ unit/ developer |
Due date of furnishing of return under section 39 of the Central Goods and Services Tax ACT |
|
In case Services exported out of India- |
|
|
In case Goods are exported by Air or Sea |
Date on which such ship or aircraft leaves India |
|
In case Goods are dispatched by post |
The Date of dispatch of goods by post office concerned to a place outside India |
|
In case Goods are exported by land |
Date on which such goods pass the frontiers |
|
GST Tax is paid provisionally under the GST Act or GST applicable rules |
The Date of adjustment of the Goods and service tax after final assessment |
|
GST Tax becomes refundable as a result of judgment, order, decree or direction of Appellate Authority, Tribunal or any Court |
Date of communication of such judgment or direction or order decree |
|
In case of a person other than supplier |
Date of receipt of services or good or both by such person |
|
GST Refund of unutilized ITC |
End of FY in which such claim of refund arises |
|
In any other case |
Date of payment of Goods and service tax |
Online Procedure for Goods and Services Tax Refund
- Initially Submission of GST RFD 01 with basic documents as per the GST Rules in Prescribe Annexure to the GST form & relevant declarations,
- Next step, In the GST refund application should not have any issues or errors or mistake in GST RFD 01 application, GST Taxpayer shall receive an GST RFD 02 acknowledgement,
- In case of any errors or mistake or issues in the GST refund application, it should be informed in prescribe form or manner in GST RFD 03.
- In case GST Officer is satisfied that, Officer may pass an relevant GST order in specified GST RFD 04 sanctioning the GST refund due within specified seven days from acknowledgement date.
- GST Officer may issue GST refund order in specified form GST RFD 06 & issue a GST payment advise in prescribed form GST RFD 05 post which GST refund automatically gets credited to the GST taxpayer respective bank account of GST registered person.
- GST refund order should be made within Sixty days from receiving date of final GST refund application.
- If matter related to export supplies, the GST Act also provides for a provisional GST refund of 90 percentage of GST refund claim within Seven days of the acknowledgement date, however supplier was not prosecuted in the last five years immediately last GST refund period.
Interest receivable on Delayed Goods and services tax Refunds
- In case of Goods and services tax Refund Order passed by the GST Officer under sub section 5 of section 54 of the CGST Act, 2017, Govt shall pay an interest of Six Percentage from the date immediately after Sixty days expiry from date of receipt of application of GST refund. Acknowledgement date is not date of receipt of GST refund application, then such relevant period of Sixty days shall be count from application receipt date & not from acknowledgement date.
- In case of Goods and services tax refund come from an order made by the appellate authority, adjudicating authority or appellate tribunal, the Govt shall pay an interest of Nine percentage from the date immediately after expiry of Sixty days from application receipt date of GST refund submitted consequent upon the received of such GST order.
The GST law's provisions for GST refunds are intended to standardise and streamline the refund process. By providing held-back cash for working capital and business expansion, the assessee's operations would be facilitated by keeping a watch on transactions and applying for GST refunds on time.
GST New Update: The option to utilize amount in cash ledger of 1 GSTIN by another Goods and Services Tax Identification Number (entities having same permanent account number) by way of transfer through form PMT-09 has been made effective in the Goods and Services Tax portal.
Refund Process under GST- "Know Your Refund Status"
- The "Know Your Refund Status" feature has been moved from Pre-login Mode to Post-login Mode.
- GST After logging in to the online GST e-Filing portal, registered taxpayers can use this feature by going to Services -> Know Your Refund Status.
- The final four digits of the bank account where the return is credited and the refund date are now displayed.
