PPT ON REFUND UNDER GST.

1. REFUND UNDER GST
FOR AVANTIS REGTECH PVT LTD ,
BY ADNAN AHMAD,

2. PRESENTATION PLAN
 Introduction
 What is Tax Refund ?
 Who can claim Refund ?
 Types of Refund under GST
 Cases in which Refund be claimed
 By when should the Refund be claimed ? (relevant dates)
 Types of Forms relating to refund
 How must refund be claimed ?
 Other provisions.

3. INTRODUCTION
• Section 54 to 58 of CGST Act, deals with the provision of refund under
the GST regime.
• Rule 89 to 97 CGST Rules
specified refund formats.
(Similar provisions are applicable in UTGST)

4. What is Tax Refund ?
• Tax refund includes refund of tax on goods and/or services exported
out of India or on inputs or input services used in the goods and/or
services which are exported outside India, or refund of tax on the
supply of goods regarded as deemed exports, or refund of unutilized
input tax credit as provided under section 38(2).
• Refund under GST is a simplified, time bound and technology driven
procedure with minimum human interference between the tax payes
and tax authorities.

5. Who can claim Refund ?
• Any person-(person as defined in Sec 2 (84))
• Any UN Agencies, consulates, embassies etc.as notified under Sec 55
(on taxes paid for inward supplies received by them)

6. Types of Refund under GST
• There are 4 types of refunds available in GST:-
• 1. Unutilized ITC – [Section 54(3) of CGST Act, 2017 and Rule 1 of Refund
• Rules]
• 2. Balance in electronic cash ledger – [Section 54(1) of CGST Act, 2017 and
• Rule 1 of Refund Rules]
• 3. Advance tax deposited by CTP or NRTP – [Section 54(1) of CGST Act, 2017
• and Rule 1 of Refund Rules]
• 4. Refund by persons specified under Section 55 (Embassy, Agency of UNO,
• etc.) – [Section 54(2) of CGST Act, 2017 and Rule 7 of Refund Rules]

7. refund
Unutilized
ITC
Balance in
Electronic cash
Ledger
Advance Tax
deposited by
CTP or
NRTP.
Refund by persons
specified under sec
55
(embassy, UNO
etc)

8. Cases in which Refund be claimed .
• In the case where excess tax has been paid erroneously.
• The registered dealer has regarded taxability of a particular supply mistakenly
as inter-state supply (IGST) instead of intra-state (CGST/SGST) or vice versa.
• If a specialized agency of the United Nations Organisation has made a
purchase on which tax has been paid by them and claiming the refund for the
same.
• Tax paid on the purchase of goods which are meant for zero-rated supply
(exports/ supply to SEZ unit or SEZ developer).
• In the case when the registered person is selling goods at a lower tax rate and
has paid a higher tax rate on the purchases, he may claim a refund for the tax
that is being paid in excess. (Except cases where he is selling goods that are
nil-rated or fully exempt from GST)

9. • Exceptions
• no refund of unutilised input tax credit in a case where goods are
subjected to export duty.
• no refund of input tax credit shall be allowed, if the supplier avails a
drawback in respect of central tax or claims refund of the integrated tax
paid.

10. Refund of unutilized ITC
Eligible
Exports of good
and services
Supply to SEZ
unit.
Rate of tax on
input > Rate of
tax on output.
Not Eligible
If supplier avails
Duty Drawback
Goods exported
out of India were
subject to export
Duty.

11. By when should the Refund be
claimed ?
• TWO years from the relevant date.(sec 54(1),sec 54(2)).
• SIX MONTHS from the last day of the quarter in which supplies were received, in
case of UN Agencies etc. specified under sec 55

12. RELEVANT DATE (EXPLANATION 2 TO SEC 54)
• DATE OF SHIP OR AIRCRAFT LEAVING INDIA,DATE WHEN
GOODS PASS FRONTEIR , DATE OF DISPATCH BY POSTOFFICE.
EXPORT OF
GOODS
• DATE ON WHICH RETURN RELATING TO DEEMED EXPORTS IS
FILED.DEEMED EXPORT
• RECEIPT OF PAYMENT WHEN SUPPLY IS COMPLETED PRIOR TO
PAYMENT;ISSUE OF INVOICE WHERE ADVANCE PAYMENT WAS
RECEIVED.
EXPORTS OF
SERVICES
• DATE OF COMMUNICATION OF SUCH
ORDER,DECREE,JUDGEMENT OR DIRECTION.
REFUND DUE TO
JUDGEMENT

13. • THE END OF THE FINANCIAL YEAR IN
WHICH CLAIM FOR REFUND ARISES.
UN-UTILIZED
ITC
• DATE OF ADJUSTMENT OF TAX AFTER
FINAL ASSESSMENT.
PROVISIONAL
PAYMENT
• DATE OF THE RECEIPT OF GOODS OR
SERVICES BY SUCH PERSON.
PERSON OTHER
THAN SUPPLIER
• DATE OF PAYMENT OF TAX.
ANY OTHER
CASE

14. • Types of Forms relating to refund
SR
NO.
FORM NO. DESCRIPTION
1 GST RFD-01 Refund application
2 GST RFD-02 Acknowledgement at the common portal.
3 GST RFD-03 Communication of deficiencies
4 GST RFD-04 Provisional - Order sanctioning the amount of refund
5 GST RFD-05 Payment advice

15. SR. NO. FORM NO DESCRIPTION
6 GST RFD-06 Final order sanctioning the amount of refund
7 GST RFD-07 Order giving details of adjustment of outstanding demands with
refund amount
8 GST RFD-08 Issuance of notice if refund not admissible
9 GST RFD-09 Reply to notice
10 GST RFD-10 Refund application by embassies, etc.
11 GST RFD-11 Statement of inward supplies of goods/services by embassies, etc

16. • HOW MUST REFUND BE CLAIMED ?
• In the prescribed form and manner ( sec 54(1) with the proviso , sec 54 (2),sec
54(4);Rules 89,94 and 96) and along with prescribed documentary evidence to
establish that :
I. Refund is due
II. There has been no unjust enrichment

17. Claims for balance in electronic cash ledger may be made
through the return for relevant tax period GTR3,GSTR4 OR
GSTR7.
• For registered taxable persons
other than UN Agencies etc.RFD 1
• For UN agencies and other
entities as specified under sec
55
RFD 10

18. DOCUMENTARY EVIDENCE SEC 54(4);RULE 89(2)
• REF.NO. AND COPY OF SAID ORDER
REFUND DUE TO AN
ORDER
• BILLS OF EXPORT AND RELEVANT
EXPORT INVOICES
EXPORT OF GOODS
• STATEMENT WITH NUMBER AND DATE
OF INVOICES,WITH ENDORSEMENT
GOODS TO SEZ UNIT
OR DEVELOPER
• STATEMENT OF NO. AND DATES OF
INVOICES.
DEEMED EXPORTS

19. • STATEMENT OF NO. AND DATE OF INVOICESEXPORT OF SERVICES
• STATEMENT OF NO.AND DATE OF INVOICES AND DETAILS
OF PAYMENT WITH PROOF AND ENDORSEMENT AND
DECLARATION THAT RECEIPIENT HAS NOT USED THE ITC
SEVICES TO SEZ UNIT
OR DEVELOPER
• ANNEXURE 1 TO GST RFD 1
ITC DUE TO INVERTED
DUTY STRUCTURE
• REF NO. AND COPY OF FINAL ASSESSMENT ORDER.
FINALIZATION OF
PROVISIONAL ORDER

20. • Annexure 2 to RFD 1
issued by a chartered
accountant.
> 2 lakhs
• Self declaration that tax
incidence has not been
passed on
< 2 lakhs

21. • What happens after application is filed ?Rule 90
For refunds relating to balance in electronic cash ledger , the
acknowledgement in form GST RFD 2 is given electronically.
For other refunds, the claim is forwarded to the proper officer
who shall , within 15 days of filing of application , send an
acknowledgement in RFD 2 , if complete ; or a deficiency
memo as per GST RFD 3 if not.

22. • What must the officer do ?
• RULE 95 process flow in case of UN agencies etc.
• Rule 96 process flow for IGST paid exports of goods
• Rule 89 to 94 process flow in other cases

23. • Process flow for the officer
• ACKNOWLEDGEMENT OR DEFICIENCY MEMO.
• WITHIN 15 DAYS OF RECEIPT
• RFD 2 FOR ACCEPTANCE
• RED 3 FOR DEFICIENCY MEMO
RFD
2/3
• PROVISIONAL REFUND
• SANCTION PROVISIONAL REFUND OF 90% IF
APPLICABLE
• WITHIN 7 DAYS OF ISSUE OF ACKNOWLEDGEMENT
• RFD 4 FOR ORDER
• RFD 5 FOR PAYMENT ADVICE
RFD
4/5

24. • PROVISIONAL REFUND ? CONDITION FOR
SANCTIONING PROVISIONAL REFUND – RULE 91(1)
• The person has not been prosecuted under the Act or under an existing
law in the preceding 5 years , where tax evaded is greater than INR
250L

25. Process flow for the officer
• SANCTION ORDER
• IF THE OFFICER IS SATISFIED THAT REFUND IS
DUE AND PAYABLE – RFD 6
• IF SAID AMOUNT IS COMPLETELY ADJUSTED
TOWARDS OUTSTANDING AMOUNT - RFD7
RFD 6/7
• IF THE OFFICER FEELS THAT WHOLE OR PART
OF THE AMOUNT CLAIMED IS NOT
ADMISSIBLE OR NOT PAYABLE –RFD 8.
• REPLY TO BE FURNISHED IN RFD 9 IN 15 DAYS.
RFD 8/9

26. TIME LIMIT FOR OFFICERS-SEC 56 AND RULE 94
• TIME LIMIT FOR THE OFFICER FOR SANCTIONING OF REFUND IS
60 DAYS, POST WHICH INTEREST IN PAYABLE IN FORM GST RFD 5

27. • IGST REFUND FOR DUTY PAID GOODS UNDER
RULE 96
IN CASE OF IGST PAID EXPORTS
SHIPPING BILL IS DEEMED TO BE THE REFUND CLAIM,ONCE EGM (EXPORT
GENERAL MANIFEST) AND VALID GSTR -3 IS FILED.CUSTOM WILL PROCESS THE
CLAIM,SHIPPING BILL WISE AND CREDIT IGST ELECTRONICALLY
IF REFUND IS WITHHELD,
ORDER AS PER PART B OF GSTR RFD 7 IS PASSED IF YOU ARE LATER ENTITLED
TO THE WITHHELD AMOUNT,ORDER TO THAT EFFECT WILL BE PASSED IN GST
RFD 6

28. SEC 54(10),SEC 54 (11) AND SEC 54 (13)
• CAN YOU WITHHOLD REFUNDS ?
• YES,YOU CAN.IN THREE SITUATION:
1. IN CASE THE APPLICANT IS A DEFAULTER/NON FILER,YOU CAN WITHHOLD UNTIL
RETURN IS FURNISHED OR PAYMENT IS MADE.
2. YOU CAN ALSO DEDUCT ANY TAX ,INTERST,PENALTY,FEE ETC FROM THE REFUND.
3. COMMISSIONER CAN WITHHOLD IF THE ORDER GIVING RISE TO REFUND IS
SUBJECT TO APPEAL/OTHER PROCEEDINGS AND HE IS OF THE OPINION THAT
GRANT OF SUCH REFUND ,MAY ADVERSELY AFFECT REVENUE INTEREST
4. NO REFUND TO ADVANCE TAX TO CASUAL /NON RESIDENT TAX PAYER UNTILL HE
FURNISHES ALL HIS RETURN.

29. • PROCESS FLOW FOR SEC 55 APPLICANTS-RULE 95
• GSTR RFD 10APPLICATION FILED
WITH STATEMENT
• GSTR RFD 2ACKNOWLEDGEMENT
RECEIPT
• PRICE OF SUPPLY IN SINGLE
INVOICE > INR 5000
SANCTION OF REFUND

30. • OTHER PROVISIONS
• REFUND IN CERTAIN CASES
• ENTITIES SUCH AS UN AGENCIES ETC,ELIGIBLE FOR
REFUND MAY BE NOTIFIED BY THE GOVERNMENT ON
THE RECOMMENDATION OF THE COUNCIL
55
• INTEREST ON DELAYED REFUND
• THE SECTION PROVIDES FOR INTEREST @ 6% IN CASE OF
DELAY IN GRANTING REFUND BEYOND THE PRESCRIBED
TIME OF 60 DAYS.
56
• CONSUMER WELFARE FUND
• THIS FUND IS TO BE ESTABLISHED BY THE GOVT AND IN
CERTAIN SITUATION THE REFUND AMOUNT WILL BE
CREDITED TO THE FUND AND NOT THE APPLICANT.
57

31. • UTILIZATION OF FUND
• THE MONEY CREDITED TO THE FUND
SHALL BE USED FOR THE WELFARE OF
CONSUMERS,GOVT SHALL MAINTAIN
PROPER AND SPECIFY THE AUTHORITY
WHILL SHALL MAINTAIN,PROPER AND
SEPARATE ACCOUNTS AND OTHER
RELEVANT RECORDS IN RELATION TO
THE FUND
58

32. THANK YOU