INTRODUCTION
Provisions of refund of taxes under GST are very important as delay would adversely impact exporters, manufacturers and dealers. A delay in refund would cause problem for the exporters/manufacturer in maintaining the working capital and cash flow.
Currently there is delay in months in providing the refund to the exporters/manufacturers/dealers
Now due to the non-availability of the refund module on the common portal, it has been decided by the competent authority, on the recommendations of the Council, that the applications/documents/forms pertaining to refund claims on account of zero-rated supplies shall be filed and processed manually till further orders.
Let’s understand the refund scenario under GST in brief:-
Brief Scenario:
| Sr. No. | Types of Refund | Forms | Electronically/ Manually | |
| 1. | Refund of IGST Paid on Export of Goods | Shipping Bill + Form GSTR-3 + Form GSTR-3B | Electronically | |
| 2. | Exports of Goods / Services | without payment of tax (accumulated ITC) | Form GST RFD-01A | Electronically |
| 3. | Exports of Services | with payment of tax | Form GST RFD-01A | Manually |
| Supplies made to SEZ Unit/ SEZ Developer | with payment of tax | |||
| without payment of tax (accumulated ITC) | ||||
| Excess balance in Electronic Cash Ledger | ||||
| ITC accumulated due to inverted tax structure [under clause (ii) of first proviso to section 54(3)] | ||||
| Recipient of deemed export | ||||
Scenario:-1
Refund of IGST Paid on Export of Goods
STEPS:
- The shipping bill filed by an exporter shall be deemed to be an application for refund in such cases
- The application shall be deemed to have been filed only when export manifest or export report is filed and the applicant has furnished a valid return in FORM GSTR-3 or FORM GSTR-3B.
- The system designated by the Customs shall process the claim for refund and an amount equal to the integrated tax paid in respect of such export shall be electronically credited to the bank account of the applicant.
- Any order regarding withholding of such refund or its further sanction respectively in PART-B of FORM GST RFD-07 or FORM GST RFD-06 shall be done manually till the refund module is operational on the common portal.
Scenario:-2
Exports of Goods / Services without payment of tax (accumulated ITC)
STEPS:
- FORM GST RFD-01A needs to be filed electronically on the common portal.
- The printout of the ARN along with application of refund shall be submitted manually before the jurisdictional GST officer. (Rule 89(1) – Application)
- The amount of credit claimed as refund would be debited in the electronic credit ledger and proof of debit needs to be generated on the common portal. ( Rule 89(3) – Debiting of electronic credit ledger)
- This form needs to be accompanied with the requisite documentary evidences, wherever applicable (Rule 89(2) – Requisite Documents)
Scenario:-3
- Exports of Services with payment of tax
- Supplies made to SEZ Unit/ SEZ Developer with payment of tax
- Supplies made to SEZ Unit/ SEZ Developer without payment of tax (accumulated ITC)
- Excess balance in Electronic Cash Ledger
- ITC accumulated due to inverted tax structure
- Recipient of deemed export
STEPS:
- Printout of FORM GST RFD- 01A needs to be filed manually before the jurisdictional GST officer
- This form needs to be accompanied with the requisite documentary evidences, wherever applicable (Rule 89(2) – Requisite Documents)
NOTE:-
* The refund application for various taxes i.e. CT / ST / UT / IT/ Cess can be filed with any one of the tax authorities
* The payment of the sanctioned refund amount in relation to CT / IT / Cess shall be made by the Central tax authority while payment of the sanctioned refund amount in relation to ST / UT would be made by the State tax/Union territory tax authority.
Disclaimer:
The information cited in this article is based on various publications and various provisions of The CGST Act, Rules or other various sources. While every effort has been made to keep, the information cited in this article error free, team GST Cornor does not take the responsibility for any typographical or clerical error which may have crept in while compiling the information provided in this article.
This article includes general information about legal issues and developments in the proposed law of GST in India. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and must not be taken, as legal advice on any particular set of facts or circumstances. We disclaim all liability in respect to actions taken or not taken based on any or all the contents of this article to the fullest extent permitted by law. Do not act or refrain from acting upon this information without seeking professional legal counsel.
Author Bio
Notification No. 32 Clause i (d) provides an exemption to services by way of access to Road or Bridge on payment of Annuity by inserting a new clause after the Sl. No. 23 of the Notification No. 12.
Please Clarify:
Whether the Semi Annuity amounts received by a Concessionaire from the Govt. Authority for the construction of Road/Bridge attracts NIL rate.
a) If yes, can the same be passed on to all subcontracts (works contract) incidental to the original work ,
b) If no, will the input credits available to the Concessionaire on account of Materials procured, the work executed through sub-contractor etc be refunded by Govt/ Govt undertaking, the awarder or any other Refund mechanism (Inverted Duty structure etc) available in the GST system.