Ans: The term ‘Inverted Tax Structure’ refers to a situation where the rate of tax on inputs is more than the rate of tax on output supplies. As a result, the higher tax paid on input supplies gets accumulated in the Electronic Credit Ledger of the taxpayer. The taxpayer can claim the refund of ITC accumulated on account of Inverted Tax structure by filing the refund application form RFD-01A. (Refer Section 54(3) (ii) of the CGST Act 2017)
Ans: You can file for refund of IGST / CGST / SGST on account of ITC accumulated due to Inverted Tax Structure, if you have filed GSTR1 and GSTR-3B of the relevant tax period, for which refund is to be claimed.
However, in case registered persons having aggregate turnover of up to Rs 1.5 crores in the preceding financial year or the current financial year opting to file FORM GSTR-1 quarterly (notification No. 57/2017-Central Tax dated 15.11.2017 refers), such persons shall apply for refund on a quarterly basis. Please note that such refund on account of inverted tax structure is not available in case of exempted or nil rated supplies.
Ans: Yes, the refund application in form RFD-01A needs to be filed within 2 years from the end of financial year in which such claim for refund arises
Ans: You have to upload documents as are required to be filed along with Form RFD-01A, as notified under CGST Rules or Circulars issued in the matter and other such documents the refund sanctioning authority may require.
Statement 1A shall be uploaded mandatorily with the details of inward and outward invoices for which refund is to be claimed. Taxpayers have an option to upload 4 documents with the refund application, of size up to 5MB each. Therefore, any supporting document can be uploaded by the taxpayer, if required.
Ans: The taxpayer shall file the refund application in Form RFD-01A on GST portal. Taxpayer shall choose ground of refund as “Refund on account of ITC accumulated due to Inverted Tax Structure” for claiming refund. After filing, refund application shall be assigned to Refund Processing Officer and refund applicant can track the status of refund application.
Ans: Yes, you can file for refund of multiple tax period in one refund application. E.g. If taxpayer wants to claim refund of Apr 2018, May 2018 and June 2018, then taxpayer can choose the period from Apr 2018 to June 2018 and file a single refund application.
Ans: Yes, you can file for nil refund for multiple tax period in one refund application.
E.g. If taxpayer doesn’t want to claim refund of Apr 2018, May 2018 and June 2018 as he doesn’t have any invoices for this period, then taxpayer can choose the period from Apr 2018 to June 2018 and file a nil refund application for that period. After filing no refund application, taxpayer won’t be able to file refund application for that period in future.
Ans: Yes, nil period of refund can be combined with the period in which there is refund in one application.
Let us suppose you want to file tax refund from Apr-Sep month, where you want to file nil refund for May-Jun month. There are two ways in which you can file your refund application.
a. You can select Tax Period as Apr-Apr and file normal refund application. You can then select May-Jun and file Nil refund application. And, select Jul-Sep and file normal refund application.
b. You can select Tax Period as Apr-Sep and file normal refund application.
Ans: Application for refund can be saved at any stage of completion for a maximum time period of 15 days from the date of creation of refund application. If the same is not filed within 15 days, the saved draft will be purged from the GST database.
Note: To view your saved application, navigate to Services > Refunds > My Saved/Filed Applications option.
Ans: No. Statement 1A for details of inward and outward invoices is mandatory for filing refund application.
The statement uploaded by taxpayer would be validated with the data already declared by the taxpayer while filing return GSTR-1 for outward supplies and details of inward supplies would be validated from supplier’s database. Only after this data is validated, the taxpayer would be able to file the refund application.
Ans: Offline utility can be downloaded from the refund application page itself.
Navigate to Services > Refunds > Application for Refund > Select the refund type as “Refund on account of ITC accumulated due to Inverted Tax Structure” > Refund Application > Download Offline Utility link.
Ans: Download Offline Utility (Statement 1A) is provided to enter and upload details of inward and outward invoices for which refund is being claimed.
Ans: Validate Statement button is used to validate invoice data provided by the taxpayer. The details of outward invoices would be validated from the details provided by taxpayer while filing GSTR-1 and details of inward supplies would be validated from supplier’s database.
Ans: Yes, you can update/ edit data even after you have validated the uploaded statement. If you want to update/delete the statement, then you would have to first delete the whole statement by clicking the DELETE STATEMENT button and upload a new statement of invoices again if needed.
Ans: To download the invoices that have been uploaded successfully on the GST Portal, you can click on the hyperlink “Download Unique Invoices”.
Ans: To download the invoices that have not been uploaded due to some error while uploading invoice details on the GST Portal, you can click on the hyperlink “Download Invalid Invoices”.
Ans: In case any statement is validated with error, click the Download Invalid Invoice link. Open the invalid invoice excel sheet. Error details are displayed. You can only rectify the error details in the JSON file and upload on the GST Portal again by clicking the CLICK HERE TO UPLOAD button.
Ans: If you don’t have any error and statement has been validated, and then you want to update/delete the statement, then you would have to first delete the whole statement by clicking the DELETE STATEMENT button and upload a new statement of invoices again if needed.
Ans: Yes, you can preview the refund application in PDF format to check for any inconsistency or discrepancy before filing on the GST Portal.
Ans: Yes, the refund amount will be credited to one of the bank accounts that you have added while filing your registration application on the GST Portal. At the time of filling out form RFD-01A, you will be required to select a bank account from the list of your linked / registered accounts in the GST Portal for crediting refund to that account, from the dropdown available in refund application. In case you want refund in another preferred bank account which is not appearing in the drop down list, you will have to add that bank account by filing amendment of registered (non-core) form. The bank account added by amendment form will get added to the drop-down list.
Ans: To track your filed application, navigate to Services > Refunds > Track Application Status option.
Ans: Once the refund application is filed, Application Reference Number (ARN) receipt would be generated and ARN would be sent to your registered e-mail address and mobile number.
Ans: Navigate to Services > User Services > My Applications link to download your filed refund application.
Ans: A debit entry shall be made in the Electronic Credit Ledger for the amount claimed as Refund on filing of refund application form by clicking on “File” button. On click of File, ARN is generated on filing of the refund application.
Ans: Once the ARN is generated on filing of refund application in Form RFD-01A, the refund application along with the documents attached while filing the form would be assigned to Refund Processing Officer for processing the refund. Tax payer can track the status of refund application using track status functionality.
The application will be processed and refund will be disbursed by the Jurisdictional Authority after scrutiny.Also Read-