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:-
|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|
Refund of IGST Paid on Export of Goods
Exports of Goods / Services without payment of tax (accumulated ITC)
* 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.
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.