Any person file an application electronically in FORM GST RFD-01 through the common portal in respect of supplies to a Special Economic Zone unit or a Special Economic Zone developer, the application for refund shall be filed by the –
(a) supplier of goods after such goods have been admitted in full in the Special Economic Zone for authorised operations, as endorsed by the specified officer of the Zone;
In this Article we are discuss about the practical implication of claiming of refund for the ITC available in the Electronic Credit ledger for the input and input services used in making the supplies to SEZ Unit / Developer if no GST has been charged on the invoice.
In the case of zero-rated supply of goods or services or both without payment of tax under bond or letter of undertaking in accordance with the provisions of sub-section (3) of section 16 of the Integrated Goods and Services Tax Act, 2017, refund of input tax credit shall be granted as per the following formula –
Refund Amount = (Turnover of zero-rated supply of goods + Turnover of zero-rated supply of services) x Net ITC ÷ Adjusted Total Turnover
“Turnover of zero-rated supply of goods” means the value of zero-rated supply of goods made during the relevant period without payment of tax under bond or letter of undertaking or the value which is 1.5 times the value of like goods domestically supplied by the same or, similarly placed, supplier, as declared by the supplier, whichever is less, other than the turnover of supplies in respect of which refund is claimed under sub-rules (4A) or (4B) or both
Documents Attached with Form RFD-1 in relation to Turnover of zero-rated supply of goods:
Adjusted Total Turnover
“Adjusted Total Turnover” means the sum total of the value of-
(a) the turnover in a State or a Union territory, as defined under clause (112) of section 2, excluding the turnover of services; and
(b) the turnover of zero-rated supply of services determined in terms of clause (D) above and non-zero-rated supply of services,
(i) the value of exempt supplies other than zero-rated supplies; and
(ii) the turnover of supplies in respect of which refund is claimed under sub-rule (4A) or sub-rule (4B) or both, if any, during the relevant period.
As per Section 2(112) “turnover in State” or “turnover in Union territory” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis) and exempt supplies made within a State or Union territory by a taxable person, exports of goods or services or both and inter-State supplies of goods or services or both made from the State or Union territory by the said taxable person but excludes central tax, State tax, Union territory tax, integrated tax and cess;
Documents Attached with form RFD 1 in relation to Adjusted Total Turnover
“Net ITC” means input tax credit availed on inputs and input services during the relevant period other than the input tax credit availed for which refund is claimed under sub-rules (4A) or (4B) or both
Any ITC in relation to capital goods has not been considered while calculating Net ITC for the purpose of Refund Calculation
Documents Attached with form RFD 1 in relation to Net Input Tax Credit
List of all statements/declarations/undertakings/certificates and other supporting documents to be provided along with the refund application as per Circular No. 125/44/2019 – GST
1. Declaration under third proviso to section 54(3)
2. Statement 5 under rule 89(2)(d) and rule 89(2)(e)
3. Statement 5A under rule 89(4)
4. Declaration under rule 89(2)(f)
5. Undertaking in relation to sections 16(2)(c) and section 42(2)
6. Self-declaration under rule 89(2)(l) if the amount claimed does not exceed two lakh rupees, if the amount exceeds 2 lakhs then a CA Certificate under rule 89(2)(m), Additional Declarations/undertakings/ Statements are also required
7. Declaration that the incidence of tax has not been passed on any other person.
8. Declaration that claims made is in accordance with the GSTR-3B
9. Declaration that ITC claimed doesn’t include credit availed for making NIL rated or exempt supplies.
10. An undertaking that the assesses has not been prosecuted for an offence under the CGST Act or under any of the existing laws in case where the amount of tax evaded exceeds 2.5 Crores.
11. Calculation Sheet of Net ITC, Zero Rated Turnover of Goods and Adjusted total Turnover.
12. Copy of LUT
13. Refund Application.
For any further information/clarification. Please contact to CA. Mohit Kelotra, Contact No +91 8839303848, firstname.lastname@example.org