The document outlines the procedures and provisions related to GST refunds, including eligibility, timelines for claiming refunds, and necessary documentation. It specifies that refunds can be claimed for zero-rated supplies, deemed exports, and unutilized ITC, among others, with detailed guidelines for applicants and tax officers. Additionally, it discusses conditions under which refunds may be withheld and the establishment of a consumer welfare fund for certain refund situations.

1. REFUNDS
GAYATHRI MENON, IRS
ASSISTANT COMMISSIONER (CENTRAL TAX)
G S T C O N C E P T S A N D P R O C E S S E S

2. WHAT WE WILL LOOK AT
Sections in the GST Act
Rules as per Notification 10/2017-Central Tax
Specified Refund Formats
REFUNDS IN GST - THE AGENDA02

3. Sections 54 to 58 deal with Refunds
Rules 89 to 97 in CGST Rules
Specified Refund Formats
LEGAL PROVISIONS03

4. WHAT IS REFUND?
Refund includes:
Refund of taxes 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 on supply of
goods regarded as deemed exports or refund of unutilized
ITC as per Sec 54(3).
REFUND AS PER EXPLANATION U/S 5443

5. WHO CAN CLAIM
REFUND?
- Any person - [Person is 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)
SEC 54(1), SEC 54(2)05

6. WHEN CAN UN-UTILIZED
ITC BE CLAIMED?
- In case of zero rated supplies made w/o tax
payment
- In case of inverted duty structure
PROVIDED there is no export duty in respect of
such goods and the supplier is not claiming
refund of output tax under the IGST Act
PROVISO TO SUB-SEC 54(3)06

7. BY WHEN SHOULD IT
BE CLAIMED?
- TWO YEARS from the relevant date in the normal
case
- SIX MONTHS from the last day of the quarter in
which supplies were received, in case of UN
Agencies etc. specified under Sec 55
SEC 54(1), SEC 54(2)07

8. EXPORTS OF
GOODS
DEEMED
EXPORTS
EXPORTS OF
SERVICES
RELEVANT DATE - EXPLANATION 2 TO SEC 5408
DATE OF SHIP OR AIRCRAFT
LEAVING INDIA; DATE
WHEN GOODS PASS
FRONTIER; DATE OF
DESPATCH BY POST OFFICE
DATE ON WHICH RETURN
RELATING TO DEEMED
EXPORTS IS FILED.
RECEIPT OF PAYMENT WHEN SUPPLY
IS COMPLETED PRIOR TO PAYMENT;
ISSUE OF INVOICE WHERE ADVANCE
PAYMENT WAS RCVD.
REFUND DUE TO
A JUDGMENT
ETC
DATE OF COMMUNICATION
OF SUCH ORDER, DECREE,
JUDGMENT OR DIRECTION.

9. UN-UTILIZED
ITC
PROVISIONAL
PAYMENT
PERSON OTHER
THAN SUPPLIER
RELEVANT DATE - EXPLANATION 2 TO SEC 5409
THE END OF THE F.Y. IN
WHICH SUCH CLAIM FOR
REFUND ARISES
DATE OF ADJUSTMENT OF
TAX AFTER FINAL
ASSESSMENT
DATE OF RECEIPT OF GOODS
OR SERVICES BY SUCH
PERSON
ANY OTHER
CASE
DATE OF PAYMENT OF
TAX

10. 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:
a) refund is due
b) there has been no unjust enrichment
SEC 54(1) AND 54(2)10

11. FOR REGD. TAXABLE
PERSONS OTHER THAN
UN AGENCIES ETC.
RFD 1
FOR UN AGENCIES AND
OTHER ENTITIES AS
SPECIFIED UNDER
SEC 55
RFD 10
FORMS 11
CLAIMS FOR BALANCE IN ELECTRONIC CASH LEDGER MAY BE MADE THROUGH
THE RETURN FOR THE RELEVANT TAX PERIOD - GSTR3, GSTR4 OR GSTR 7

12. REFUND DUE TO
AN ORDER
EXPORT OF
GOODS
GOODS TO SEZ
UNIT OR
DEVELOPER
DOCUMENTARY EVIDENCES - SEC 54(4); RULE 89(2)12
REF. NO. AND COPY OF
SAID ORDER
STATEMENT OF S/B OR BILLS
OF EXPORT AND RELEVANT
EXPORT INVOICES
STATEMENT WITH NUMBER
AND DATE OF INVOICES, WITH
ENDORSEMENT
DEEMED
EXPORTS
STATEMENT OF NO. AND
DATES OF INVOICES +
OTHER EVIDENCE

13. EXPORT OF
SERVICES
SERVICES TO
SEZ UNIT OR
DEVELOPER
ITC DUE TO
INVERTED DUTY
STRUCTURE
DOCUMENTARY EVIDENCES - SEC 48(4); RULE 1(2)13
STATEMENT OF NO. AND
DATE OF INVOICES AND
BRCS OR FIRCS
STATEMENT OF NO. AND DATE
OF INVOICES AND DETAILS OF
PAYMENT WITH PROOF +
ENDORSEMENT + DECLARATION
THAT RECIPIENT HAS NOT USED
THE ITC
ANNEXURE 1 TO GST RFD 1
FINALIZATION
OF PROVISIONAL
ORDER
REF NO. AND COPY OF
FINAL ASSESSMENT
ORDER

14. ANNEXURE 2 TO RFD 1
ISSUED BY A CHARTERED
OR COST ACCOUNTANT
> 2 LAKHS
SELF-DECLARATION THAT
TAX INCIDENCE HAS NOT
BEEN PASSED ON
< 2 LAKHS
DOCUMENTARY AND OTHER EVIDENCES14
IN CASE OF REFUND CLAIMS FOR UN-UTILIZED ITC , THE ITC LEDGER
SHALL BE DEBITED BY THE APPLICANT IN AN AMOUNT EQUAL TO THE
REFUND CLAIMED

15. WHAT HAPPENS AFTER
APPLICATION IS FILED?
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.
RULE 9015

16. WHAT MUST THE
OFFICERS DO?
- Rule 95 process flow in case of UN Agencies etc.
- Rule 96 process flow for IGST paid exports of
goods.
- Rules 89 to 94 process flow in other cases.
AS PRESCRIBED IN THE RULES AND SEC 5416

17. D.M OR ACKNOWLEDGEMENT
RFD 2/3
In case of refunds other than balance in
cash ledger
Within 15 days of receipt
RFD 2 for acceptance
RFD 3 for deficiency memo
PROVISIONAL REFUND
RFD 4/5 Sanction provisional refund of 90% if
applicable
Within 7 days of issue of acknowledgement
RFD 4 for order
RFD 5 for payment advice
PROCESS FLOW FOR THE OFFICER17

18. 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 250 L
CONDITIONS FOR SANCTIONING PROVISIONAL REFUND - RULE 91(1)18

19. SANCTION ORDER
RFD 6/7
If the officer is satisfied that refund is due
and payable - RFD 6
If said amount is completely adjusted
towards outstanding amount - RFD 7
SHOW CAUSE NOTICE
RFD 8/9 If the officer feels that whole or part of the
amount claimed is not admissible or not
payable - RFD 7
Reply to be furnished in RFD 9 in 15 days
PROCESS FLOW FOR THE OFFICER19

20. - If any deficiencies have been communicated through RFD
3, the amount debited under Rule 89(3), i.e. in case of
refund of un-utilized ITC, shall be re-credited to the
electronic credit ledger.
- If any amount claimed is rejected either fully or partly, the
amount debited, to the extent of rejection, shall be re-
credited to the electronic credit ledger vide GST PMT 2A
RULE 93- CREDIT OF THE AMOUNT OF REJECTED REFUND CLAIM20

21. Time limit for the officer for
sanctioning of refund is 60 days,
post which interest is payable in
FORM GST RFD 5
TIME LIMIT FOR OFFICERS - SEC 56 AND RULE 9421

22. APPLICATION
FILED WITH
STATEMENT
OR GSTR-11
ACKNOWLEDGE
RECEIPT
SANCTION OF REFUND
SUBJECT TO RULE 92
CONDITIONS
PROCESS FLOW FOR SEC 55 APPLICANTS - RULE 9522
GSTR RFD 10
GST RFD 2
INWARD SUPPLIES ARE FROM A REGD.
TAXABLE PERSON AGAINST TAX
INVOICE - PRICE OF SUPPLY IN
SINGLE INVOICE > INR 5000 -
GSTN/UIN ON TAX INVOICE - ANY
OTHER CONDITIONS

23. IF REFUND IS WITHHELD,
order as per Part B of GST RFD7 is passed.
If you are later entitled to the withheld
amount, order to that effect will be passed
in GST RFD 6.
IGST REFUND FOR DUTY PAID GOODS UNDER RULE 9623
IN CASE OF IGST PAID EXPORTS.
Shipping Bill is deemed to be the Refund
Claim, once EGM and Valid GSTR-3 is filed.
Customs will process the claim, Shipping
Bill wise and credit IGST electronically.

24. CAN YOU WITHHOLD
REFUNDS?
Yes, you can. In THREE situations:
- In case the applicant is a defaulter/non-filer, you can withhold until
return is furnished or payment is made.
- You can also deduct any tax, interest, penalty, fee etc from the refund
- 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 interests
- No refund of advance tax to casual/non-resident tax payer until he
furnishes all the returns
SEC 54(10), SEC 54(11) AND SEC 54(13)24

25. REFUND IN CERTAIN CASES
55
Entities such as UN Agencies etc. eligible
for refund may be notified by the
Government on the recommendation of the
Council.
INTEREST ON DELAYED REFUNDS
56 This section provides for interest @ 6% in
case of delay in granting refunds beyond
the prescribed time of 60 days.
OTHER PROVISIONS25

26. CONSUMER WELFARE FUND
57
This Fund is to be established by the Govt.,
and in certain situations the refund amount
will be credited to the Fund, and not the
applicant. [Sec. 57, 54(5)]
UTILIZATION OF FUND
58 The money credited to the Fund shall be
utilized by the Govt. for the welfare of
consumers. Govts. shall maintain or specify
the authority which shall maintain, proper
and separate accounts and other relevant
records in relation to the Fund.
OTHER PROVISIONS26

27. THANK YOU!