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Refund under GST
- 1. Indiaβs top GST Compliance platform REFUND UNDER GST by
- 2. Refund under GST Any person claiming refund of any tax and interest, can make an application within 2 years. A registered person, claiming refund of any balance in the cash ledger or electronic credit ledger, can claim such refund in the Monthly Return. βRefundβ includes refund of tax paid on zero-rated supplies of goods or services or both or on inputs or input services used in making such zero-rated supplies, or refund of tax on the supply of goods regarded as deemed exports, or refund of unutilized ITC. No refund will be given if the amount is less than Rs.1000/-
- 3. Cases where refund is allowed Zero rated supplies made without payment of tax. Where refund is generated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies). Tax paid on a supply which is not provided, either wholly or partially, and for which invoice has not been issued, or where a refund voucher has been issued. The tax and interest, if any, or any other amount paid by the applicant, if he had not passed on the incidence of such tax and interest to any other person. Other conditions which the Government notifies.
- 4. Cases where refund is not allowed β’ In case of goods or services which are notified by council in this behalf. β’ Refund of unutilized input tax credit in where the goods exported out of India are subjected to export duty. β’ Refund of unutilized input tax credit if the supplier of goods or services or both avails of drawback in respect of central tax or claims refund of the integrated tax paid on such supplies. EXPLANATION: In relation to any goods manufactured in India and exported, means the rebate of duty, tax or cess chargeable on any imported inputs or on any domestic inputs or input services used in the manufacture of such goods.
- 5. 1. A statement in Annex 1 of FORM GST RFD-01 containing the no. and date of invoices received and issued in a case where the claim pertains to refund of any unutilized ITC where the credit has accumulated due to rate of tax on inputs being higher than the rate of tax on output supplies, 2. The reference number of the final assessment order and a copy of the said order in a case where the refund arises on account of finalization of provisional assessment; 3. A declaration to the effect that the incidence of tax, interest or any other amount claimed as refund has not been passed on to any other person, in a case where the amount of refund claimed does not exceed Rs. 2 lakh. 4. A Certificate in Annex 2 of FORM GST RFD-01 issued by a CA or a Cost Accountant which says that the incidence of tax, interest or any other amount claimed as refund has not been passed on to any other person, in a case where the amount of refund claimed exceeds Rs. 2 Lakh. Documents required for Refund Application : Normal Case
- 6. Documents required for Refund Application : Other Cases β’ In case of officer / court order β’ The reference number of the order and a copy of the order passed by the officer , court etc resulting in such refund β’ Reference number of the payment of the amount claimed as refund; β’ In case of Exports β’ A statement containing the number and date of shipping bills or bills of export and the number and date of relevant export invoices, in a case where the refund is on account of export of goods; β’ A statement containing the number and date of invoices and the relevant Bank Realization Certificates or Foreign Inward Remittance Certificates, in a case where the refund is on account of export of services. β’ A statement containing the number and date of invoices along with such other notified evidence, in a case where the refund is due to deemed exports; β’ In a case of supplies made to SEZ Unit/Developer: β’ A statement containing the number and date of invoices as required in a tax invoice along with the evidence. β’ A statement containing the number and date of invoices, the evidence and the details of payment, along with proof thereof, made by the recipient to the supplier for authorized operations as defined under the Special Economic Zone Act, 2005
- 7. When is the Refund actually Realised? Refund of tax paid on zero-rated supplies or on inputs or input services used in making such zero-rated supplies. Refund of tax paid on a supply which is not provided, either wholly or partially, and for which invoice has not been issued, or where a refund voucher has been issued. Refund of tax when a transaction is considered to be an intra-State supply, but which is later held to be an inter-State supply. The tax and interest, if any, or any other amount paid by the applicant, if he had not passed on the incidence of such tax and interest to any other person; or The tax or interest borne by notified class of applicants. The Refundable Amount instead of being credited to the Fund, be paid to the applicant, if such amount is relatable toβ
- 8. Refund in case of Zero-rated supply In case of zero-rated supply without payment of tax under bond or letter of undertaking under IGST Act, refund of input tax credit shall be granted as per the following formula: β’ Refund Amount:- ππ’ππππ£ππ ππ π§πππ β πππ‘ππ π π’ππππ¦ ππ πππππ + ππ’ππππ£ππ ππ π§πππ β πππ‘ππ π π’ππππ¦ ππ π πππ£ππππ Γ πππ‘ πΌππΆ π΄πππ’π π‘ππ πππ‘ππ ππ’ππππ£ππ
- 9. Calculation of Zero-Rated Supply of services β’ Zero-rated supply of services made without payment of tax under bond or letter of undertaking is calculated in the following manner: The payments received Where supply has been completed for which payment had been received in advance in any period prior to the relevant period Advances received for zero-rated supply of services for which the supply of services has not been completed
- 10. Refund of tax to UN Related persons Any UN related person eligible to claim refund of tax paid by him on his inward supplies must apply for refund in FORM GST RFD-10 once in every quarter, along with a statement of inward supplies in FORM GSTR-11, prepared on the basis of statement of outward supplies furnished by corresponding suppliers in FORM GSTR-1.
- 11. UN Related Persons β’ A specialized agency of the United Nations Organisation or β’ International Civil Aviation Organisation. β’ World Health Organisation (WHO) β’ International Labour Organisation (ILO) β’ Food and Agriculture Organisation of the United Nations. β’ United Nations Educational, Scientific and Cultural Organisation. β’ International Monetary Fund. β’ International Bank of Reconstruction and Development. β’ Universal Postal Union. β’ International Telecommunication Union. β’ World Meteorological Organisation. β’ Permanent Central Opium Board. β’ International Hydrographic Bureau β’ or any Consulate or Embassy of foreign countries or any other notified person or class of persons, will be entitled to a refund of tax paid by it on inward supplies, may make an application for such refund, within 6 months from the last day of the quarter in which such supply was received.
- 12. When is refund of tax available to UN related person? Refund of tax is available to UN related persons when: β’ The inward supplies of goods or services or both were received from a registered person against a tax invoice and the price of the supply covered under a single tax invoice exceeds RS.5000/- excluding tax paid, if any; β’ Name and GSTIN or UIN of the applicant is mentioned on the tax invoice.
- 13. Interest on Delayed Refunds If refund is not given within 60 days from the date of application, interest on refund at notified rate not exceeding 6% will be payable from the end of 60 days till actual realization.
- 14. Order sanctioning interest on delayed refunds Where any interest is due and payable, the proper officer will make an order along with a payment advice in FORM GST RFD-05, and such interest will be credited to the specified bank account.
- 15. Grant of provisional refund (1) The provisional refund will be granted subject to the following conditions - β’ The person claiming refund must not have been prosecuted for any offence under the CGST Act or under any existing law where the amount of tax evaded exceeds Rs.2,50,000/, during any period of 5 years immediately preceding the tax period to which the claim for refund relates. β’ The GST compliance rating, where available, of the applicant is not less than 5/10. β’ No proceedings of any appeal, review or revision should be pending on any issues relating to such refund, and if pending, the same should not have been stayed by the appropriate authority or court.
- 16. Credit of the amount of rejected refund claim Where any deficiencies in the refund application have been communicated, the amount debited will be re-credited to the electronic credit ledger. Where any amount claimed as refund is rejected after examination of the application, either fully or partly, the amount debited, to the extent of rejection, shall be re- credited to the electronic credit ledger by an order made in FORM GST PMT-03. β’ Explanation: A refund shall be deemed to be rejected, if the appeal is finally rejected or if the claimant gives an undertaking in writing to the proper officer that he shall not file an appeal.
- 17. LegalRaasta: Indiaβs top GST compliance provider GST registration GST return filing GST Software Visit www.legalraasta.com or Call us at +91 8750008585
Editor's Notes
- In this video we are going to tell you about who can claim refund under GST, the cases where it is allowed and not allowed, what are the documents required for it and where it is actually realised. Is video mei hum apko btaenge ki GST mei refund kon claim kar skta h, ye kaha allow hota h or kaha nahi, kon konse documents chahie hota h iske lie or kaha ye actual mei realise hota h.
- Any person claiming refund of any tax or interest, can make an application within 2 years or a person claiming refund of any balance in the cash or credit ledger, can claim it in the monthly return. Koi bhi person agar tax or interest ka refund claim karta h to use 2 years k andar ek application file krni hogi or agar person cash or credit ledger ke balance ka refund claim krta h to wo use monthly return mei claim kr skta h.
- There are some cases where refund is allowed such as- Zero- rated supplies made without payment of tax, Where refund is generated on account of rate of tax on inputs being higher than the rate of tax on output supplies other than nil rated and fully exempt supplies, etc. Kuch cases mei refund allowed hota h jaise- Zero-rated supplies jo bina tax payment ke hui h, Jaha output supplies pe tax rate se jyada input supplies pe tax rate h waha refund generate hota h, Us supply pe tax pay krna jo ya to partially ya wholly provide nahi hua h or jiske lie ya to invoice issue nahi hua h ya refund voucher issue hua h, Bki ki conditions government notify kregi.
- There are some cases where refund is not allowed like- In the case of refund of unutilized input tax credit in where the goods exported out of India are subjected to export duty, or In the case where refund of unutilized input tax credit if the supplier avails of drawback in respect of central tax or claims refund of the integrated tax paid on such suppy In the cases which are to be notified by the council. Kuch cases hai jaha refund allowed nahi hota h jaise- Unutilized input tax credit ke refund ke case mei jisme jo goods export hue h India se unpe export duty lagegi, or Us case mie jaha Unutilized input tax credit ke refund pe agar supplier avail krta h central tax ya integrated tax ke refund ko claim karta h, or Wo cases jo council notify karegi
- In normal cases the documents required for refund application are- A statement in annex 1 of GST refund form 1, The reference No. of the final assessment order and a copy of the said order in a case where the refund arises on account of finalization of provisional assessment, A declaration that the incidence of tax, interest claimed as refund has not been passed to any other person, in a case where the amount of refund claimed is upto Rs. 2 lakh. And, a certificate in annex 2 of GST refund form 1 issued by a CA or cost accountant, which says that the incidence of tax, interest claimed as refund has not been passed to any other person, in a case where the amount of refund claimed exceeds Rs. 2 Lakh. Refund application ke lie jo document chahie hote h normal case mei wo h- GST refund form 1 ke annex 1 mei ek statement, Final assessment order ka reference no. or ek copy is order ki us case mei jab refund provisional assessment mei arise hota h, Ek declaration ki jo tax, interest claim hue h as refund wo kisi or person ko pass ni hua h us case mei jab refund claim ki value 2 lakh tak h, or Ek certificate GST refund form 1 ke annex 2 jo CA ya cost accountant issue karga jisme ye mention hoga ki jo tax, interest claim hua h as refund wo kisi or person ko pass nahi hua h us case mei jab refund ka amount 2 lakh se jyda h
- In the case of OFFICER OR COURT ORDER the documents required for refund application are- The reference number of the order and a copy of the order passed by the officer OR court resulting in such refund, and Reference number of the payment of the amount claimed as refund. In the case of EXPORTS- A statement containing the no. and date of shipping bills and relevant export invoices, where the refund is on account of export of goods, A statement containing the no. and date of invoices and the relevant Bank Realization Certificates or Foreign Inward Remittance Certificates, where the refund is on account of export of services, and A statement containing the no. and date of invoices along with such other notified evidence, where the refund is due to deemed exports; In the case of supplies made to SEZ UNIT or DEVELOPER- A statement containing the number and date of invoices as required in a tax invoice along with the evidence, and A statement containing the number and date of invoices, the evidence and the details of payment, along with proof, made by the recipient to the supplier for authorized operations. OFFICER or COURT ORDER ke case mei jo documents chahie hote h wo h- Order ka reference no. or uski copy jo officer ya court ne pass kari h us refund ke lie, or Jo bhi amount claim hua h uski payment ka reference no. EXPORTS ke case mei- Ek statement jisme shipping bills or zruri export invoices ke no. or date ho, goods ke export ke case mei. Services ke export ke case mei, ek statement jisme invoices or zruri bank realization certificates or foreign inward remittance certificate ka no. or date ho, or Deemed exports ke case mei, ek statement jisme invoices or evidences ke no. or date ho. Agar supply SEZ UNIT ya developer ko hui h us case mei- Ek statement jisme invoices ke no. or date ho, jo tax invoice mei chahie evidence ke sath, or Ek statement jisme Invoices ke no. or date, evidence or payment ki details details ho proof ke sath ki ye ek authorized operation h.
- The Refundable Amount instead of being credited to the Fund, be paid to the applicant, if such amount is relatable toβ Refund of tax paid on zero-rated supplies or on inputs or input services used in making such zero-rated supplies. Refund of tax when a transaction is considered to be an intra-State supply, but which is later held to be an inter-State supply, etc. Jo refundable amount h wo fund mei credit hone ki jagah applicant ko pay kia jaega agar wo amount related h- Jo tax zero-rated supply pe pay hua h uska refund, ya Jo tax intra-state supply pe hua h uska refund, lekin jo bad mei inter-state ban jata h, etc.
- In case of zero-rated supply without payment of tax under bond or letter of undertaking under IGST act, refund of input tax credit shall be the above given formula. Zero-rated supply ke case mei IGST act ke under kisi bond ya letter of undertaking mei bina tax pay kie , input tax crdit ka refund upar jo formula dia h wo hoga.
- Calculation of zero-rated supply of services means: The payments received during the relevant period for zero-rated supply + where advance payment for completed supply received in any period prior to the relevant period β advances received for zero-rated supply for which the supply has not been completed during the relevant period Services ki Zero-rated supply ka matlab- Wo payment jo zero-rated supply ke lie receive hui h relevant period mei + Advance payment jo completed supply ke lie receive hui h kisi bhi period mei relevant period se pehle β Wo advance jo receive hua h zero-rated supply mei lekin supply complete nahi hui relevant period mei
- Any UN related person eligible to claim refund of tax paid by him must apply in GST refund form 10 once in every quarter along with a statement of inward supplies in GSTR from 11. Koi bhi UN related person jo refund claim krne ke lie eligible hai use GST refund form 10 mei apply karna hota h har quarter mei ek inward supply ki statement ke sath GSTR form 11 mei.
- There are several types of UN related persons like- World Health Organisation Universal Postal Union International Labour Organisation, etc UN related persons kai tarah ke hote h jaise- World Health Organisation Universal Postal Union International Labour Organisation, etc
- The refund of tax is available to a UN related person when the inward supplies received from a registered person against a tax invoice and the price exceeds rs.5000/-excluding tax paid. Tax ka refund tab available hota h ek UN related person ko jab inward supply jo ek registered person se receive hua h ek tax invoice ke against or jiska price 5000 se jyada h, excluding jo tax pay ho chuka h.
- In Interest on delayed refunds If refund is not given within 60 days from the date of application, interest on refund at notified rate not exceeding 6% will be payable from the end of 60 days till actual realization. But there is an exception: No interest will be given where any claim of refund arises from an order passed by an adjudicating authority or Appellate Authority or Appellate Tribunal or court. Interest on delayed funds mei agar refund application date se 60 days ke andar nahi dia gya, tab refund pe interest notified date pe pay kia jaega 60 days ke khatam hone ke bad tb tak jb tak refund mil ni jata lekin interest 6% se exceed nahi karega. Iski ek exception bhi hai: Refund pe koi interest nahi milega agar order kisi adjudicating authority, appellate authority ya appellate tribunal ya court ne pas kia h.
- When the proper officer is satisfied that the interest due on delayed funds is payable, he will make an order along with a payment advice in GST refund from 5 and such interest will be credited to the specified bank account. Jab proper officer satisfied hota h ki jo interest due ha delayed funds pe wo payable h, wo ek order pass karega payment advice ke sath GST refund form 5 mei or wo interest credit ho jaega us specified bank account mei.
- The provisional refund will be granted subject to the following conditions:- The person claiming refund must not have been prosecuted for any offence under the CGST Act or any existing law where the amount of tax evaded exceeds Rs.2,50,000/, during any period of 5 years immediately preceding the tax period to which the claim for refund relates. The GST compliance rating of the applicant is not less than 5/10. No proceedings of any appeal, review or revision should be pending on any issues relating to such refund, and if pending, the same should not have been stayed by the appropriate authority or court. Provisional refund ko dene ki kuch conditions hai jaise- Jo person refund claim kr raha h wo CGST act ya existing law mei kisi offence ke lie prosecute nahi hua ho jaha pe jo tax bachaya h uski value 2,50,000 se jyda na hui ho. Jo GST ki compliance rating ho kisi bhi applicant ki wo 5/10 se kam na ho, or Kisi bhi appeal, review ya revision ki proceeding kisi bhi issue pe pending na ho or agar pending ho to wo issue appropriate authority ya court ke pass ni hona chahie.
- If any amount claimed as refund is rejected after examination of the application, the amount debited, to the extent of rejection, shall be re-credited to the electronic credit ledger. Agar koi bhi refund jo claim hua h wo reject ho gya h application dekhne ke bad, to jo amount debit hua h wo re-credit ho jaega electronic cash ledger mei.
- To know more on GST, please refer to other videos by LegalRaasta. You can also logon to our website www.legalraasta.com. In fact, you can get GST registration and GST filing services from LegalRaasta. CAs or accountants can use LegalRaasta software for filing GST return. Call us at 8750008585 for more details.