Refund on Account of Supplies made to SEZ Unit/ SEZ Developer (Without Payment of Tax)
How can I file for refund on account of supplies made to SEZ unit / SEZ developer (without payment of tax)?
Filing for refunds is a post-login functionality, which means that the Taxpayer must login to the GST Portal with their valid login credentials before filing a refund application.
Taxpayers can file for refund on Account of Supplies Made to SEZ Unit / SEZ Developer (without payment of tax) by performing the following steps:
1. Access the GST Portal. The GST Home page is displayed.
2. Using your valid credentials, login to the GST Portal.
3. The Taxpayer’s Dashboard is displayed.
4. Navigate to the Services > Refunds > Application for Refund option.
5. Select the tax period (year and month) for which the refund application needs to be filed.
6. Select the Refund on account of Supplies to SEZ unit/ SEZ Developer (without payment of tax) refund type radio button.
7. Click the corresponding Create button.
- Form GST-RFD-01 A opens, showing the fields relevant to the selected refund type, which is Refund on account of Supplies to SEZ unit/ SEZ Developer (without payment of tax) in this case.
- The header area displays the Taxpayer’s GSTIN, Legal name of Business, Trade Name, selected tax period, and status of current application.
- In the section Computation of Refund to be Claimed – Statement 5-A [rule 89(4)], you need to enter:
o Turnover of zero rated supply of goods and services, in column-1; This will be the same figure for all the major heads – ITGST, CGST, SGST / UTGST, and CESS
o Net ITC, in column-2
o Adjusted total turnover, in column-3; This is the turnover in a State or a Union Territory as defined under clause (112) of section 2, excluding the value of exempt supplies other than zero-rated supplies during the relevant period, and will be the same figure for all major heads – ITGST, CGST, SGST / UTGST, and CESS.
8. Enter the Turnover of Zero Rated Supply of Goods and Services (column-1), the Net ITC (column-2), and the Adjusted Total Turnover (column-3).
9. The GST Portal will auto-calculate the following:
- The Refund Amount, in column-4 (for all the four major heads – IGST, CGST, SGST / UTGST, and CESS) will be auto-calculated basis the formula, where the Turnover of Zero Rated Supply as entered in column-1 will be multiplied by the Net ITC as entered in column-2, and the product will then be divided by the Adjusted Total Turnover as entered in column-3. This formula can also be described as:
(((Turnover of Zero Rated Supply of Goods and Services) x (Net Input Tax Credit)) ÷ Adjusted Total Turnover)
- The next table Amount eligible for Refund establishes the Taxpayer’s eligibility of the refund amount. This is taken as the lowest of the following three figures:
o Values as per Statement-5A, which the Refund Amount that the system auto-calculated in previous step with the help of given formula
o Balance in Electronic Credit Ledger, for all the four major heads – IGST, CGST, SGST / UTGST, and CESS
o ITC Availed During the Period, for all the four major heads – IGST, CGST, SGST / UTGST, and CESS
- The GST Portal then copies the Eligible Amount figures in table Refund Claimed, and adds-up the tax refund figures of all the four major heads – IGST, CGST, SGST / UTGST, and CESS, to arrive at the total refund amount, which will be credited to the Taxpayer’s bank account number, registered with the GST Portal.
10. Select the bank account where you wish to receive the refund.
- The Taxpayer must select a bank account from the drop-down list in order to receive refund.
- The bank accounts displayed in the drop-down are those accounts that were provided during GST registration.
- In case you wish to get the refund credited in another bank account that does not appear in the drop-down list, you should first make sure that the said bank account is registered in the GST Portal. If not, then please add that bank account first by filing Amendment of Registration (non-core) form.
11. Click Save to upload your entered refund details to the GST Portal.
- The refund application must be saved before filing.
- The system will flash a confirmation message when saving the application for the first time.
- The system displays a confirmation message upon saving the application.
- Application can be saved at any stage and can be retrieved using the My Saved / Submitted Applications option under Refunds.
- Saved applications are stored in the system for 15 days, after which they get automatically deleted.
- Saving the application activates the Declaration checkbox.
12. Check the Declaration box.
- The purpose of this declaration is to certify that the Special Economic Zone unit / the Special Economic Zone developer has not availed ITC of the tax paid by the applicant, which is covered under this refund claim.
13. Click Proceed.
14. Check the declaration box.15. Select an Authorized Signatory from the list of registered names in drop-down.16. Click either Submit with DSC or Submit with EVC option:
- Submit with DSC: Sign the application using the registered Digital Signature Certificate of the selected authorized signatory.
- Submit with EVC: If the EVC option is selected, the system will trigger an OTP to the registered mobile phone number and e-mail address of the authorized signatory. Enter that OTP in the pop-up to sign the application
- The system generates an ARN and displays it in a confirmation message, indicating that the refund application has been successfully filed.
- GST Portal sends the ARN to the Taxpayer by e-mail and SMS.
- GST Portal also makes a Debit entry in the Electronic Credit Ledger for the amount claimed as refund.
- Filed applications (ARNs) can be downloaded as PDF documents using the My Saved / Submitted Applications option under Refunds.
- Filed applications can be tracked using the Track Application Status option under Refunds.
- Once the ARN is generated on submission of form RFD-01A, the Taxpayer needs to take prints of the filed application and the Refund ARN Receipt generated at the portal, and submit the same along with supporting documents to the jurisdictional authority. The application will be processed and refund will be disbursed manually.
- The disbursement is made once the concerned Tax Official processes the refund application.
Once Application Reference Number (ARN) is generated, take a print of Application and submit to the Jurisdictional Authority manually along with other relied upon documents as required under RFD-01.
Note: A debit entry shall be made in the Electronic Credit Ledger for the amount claimed as Refund in the Refund Claim Matrix.
Navigate to Services > Ledgers > Electronic Credit Ledger.
The Electronic Credit Ledger is displayed.