GST Refund is granted to exporter of Goods or Services whose GST Credit accumulates on account of export. GST Refund is also granted to entities who are engaged in in-advertant duty structure.
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GST being an Indirect tax, allows refund of GST as per the provisions of the Act. Every Business organisation must design and implement its financial books structure in such a way in order to extract optimum utilisation from the GST Refund scenarios as per the provisions of GST Act. We at ReturnFilings.com provide assistance to business organisation to plan their financial books in such a manner for optimum utilisation of GST by the means of minimum cash flow and GST refund mechanism. GST Act provides refund under following categories:
- Refund to all export of Goods and Services including goods and services supplied to SEZ units
- Refund of all input on goods and services undertaken by UIN holders or embassies
- Refund of accumulated input tax credit on account of inadvertent duty structure
- Refund to international tourists on GST paid on goods which are carried abroad at the time of their departure.
- Refund on account of pre-deposit or excess payment due to mistake or erroneously payment of GST in one head instead of another (i.e. CGST head / SGST head / IGST head)
- Refund on account of provisional assessment or any Judgement, Decree, Order or under the direction of Appellate Authority or Appellate Tribunal.
- Application for GST Refund can be filed online using Form GST RFD-01; this form must accompany the supporting in the form of attachment of files. In case invoices number are large, then sample invoices along-with detailed list of invoices can be attached. Post filing of GST RFD-01 this application is transferred to jurisdiction officer for further processing and “ARN” (Application Reference Number) shall be generated for further reference.
- Jurisdiction Officer can issue deficiency memo in Form GST RFD-03 specifying the correction required to be made. The applicant can re-file refund application within 15 days of issue of deficiency memo in GST RFD-03. Any ITC already debited from the Credit ledger on filing GST RFD-01 shall be re-credited on issuing deficiency memo in GST RFD-03. Refund application filed in response to deficiency memo shall be treated as fresh application and limitation period of 2 years shall be counted from the date of re-filing of fresh application in response to deficiency memo.
- After submitting refund application in GST RFD-01, Jurisdiction Officer shall scrutinize the application and if it is completed in all aspects will issue acknowledgement in GST RFD-02 within 15 days of submission of application. After issuing GST RFD-02 no deficiency memo can be issued on whatsoever grounds.
- Provisional Refund of 90% can be issued in case of zero rated supplies i.e. export supplies in Form GST RFD 04; however there is also option to skip GST RFD-04 and issue order for full refund under Form GST RFD-06.
- Once order under form GST RFD-04 or GST RFD-06 is issued then refund amount will be credit to the bank account of the applicant followed by payment order in GST RFD-05.
- In case the applicant is also having any outstanding dues, then the Jurisdiction Officer can make adjustment of outstanding from the refund of the applicant, the same order can be passed in GST RFD-07.
- In case the Jurisdiction Officer is of the vie that GST Refund is not admissible under any provisions of the GST Act, then an order can be passed in Form GST RFD-08 seeking reasons from the applicant, the applicant may provide its response in Form GST RFD-09.
- All the required GST Refund filing application and forms are filed on GST Portal.