How to apply for Refund of ITC paid on Exports of Goods and Services?

Application for Refund of ITC paid on Exports of Goods and Services without payment of Integrated Tax

Q. 1. How can I get my refund of ITC on account of export without payment of Tax?

Ans: You may comply with the activities as specified below:

1. You have to file refund application RFD – 1A at GST Portal.

2. You have to mention turnover of Zero-Related supplies and Adjusted Total Turnover in a State or UT for the period refund is sought for and the net ITC (the ITC availed during the period refund is sought for).

3. System will auto calculate the eligible refund amount and post in the last column of table.

4. Applicant has to ensure that he has filed the return (GSTR- 3B) of the period for which Refund is sought.

5. Balance in ITC ledger should be sufficient in each head (IGST/CGST/SGST/UTGST/CESS).

6. He should have exported goods/service on account of which he is claiming ITC refund.

7. In case of export of services, he should have obtained FIRC/BRC from the concerned bank.

8. 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: FORM RFD 01A can be filed only after filing of valid GSTR-3B for the Return Period.

Q. 2. What are the conditions that I have to fulfil for getting refund of IGST paid on Export of Goods (with payment of tax)?

Ans: 1. GSTR – 1 for the month of July or Table 6A of GSTR – 1 for subsequent months must be filed. Since filing of GSTR 1 for August, September, October, November and subsequent months are being enabled shortly, filing of Table 6A of GSTR1 would be discontinued w.e.f. GSTR1 filing.

2. Shipping bill no. & date should be mentioned in Table 6A of GSTR – 1 and IGST amount should be mentioned.

3. GSTR – 3B for the relevant tax period should have been filed

4. IGST amount to be paid should be shown under Table 3.1(b) of GSTR – 3B, which must be equal or greater than the IGST amount shown to be paid under Table 6A GSTR – 1.

5. The Invoice details given under GSTR – 1/ Table 6A of GSTR – 1 and given under shipping bill should be the same.

Q.3 How can I file Refund application for the IGST paid on export of goods?

Ans: There is no requirement to file separate refund for IGST paid on export of goods. The Shipping Bills filed by the taxpayer itself is treated as refund application and the refund amount is processed and paid to the taxpayer if conditions as specified in reply to the question number 2 are fulfilled.

Q.4 Can I save the application for refund?

Ans: Application for refund can be saved at any stage of completion for a maximum time period of 15 days. If the same is not submitted 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/Submitted Application command.

Q.5 How can I track the status of application for refund?

Ans: To track your submitted application, navigate to Services > Refunds > Track Application Status command.

Q.6 What is Zero-rated Supply Turnover?

Ans: Zero-rated Supply Turnover is the value of total supplies made on account of exports out of India including export to SEZ for the month or period for which refund of ITC has been sought for. This is the value of supplies for the tax period made for export to a country outside India or to a SEZ by the taxpayer as mentioned in his GSTR3B.

Q.7 What is adjusted Total Turnover?

Adjusted total turnover is the value of supplies in a State or Union Territory, pertaining to all supplies except exempted supplies, during the month or the period for which refund has been sought for. This is the value of all the supplies except exempted supplies in State/UT made for the relevant tax period as mentioned in his GSTR3B of that tax period.

Q.8 What is Net ITC?

Ans: Net ITC is the Input Tax Credit availed by the Taxpayer in his ITC Ledger during the month or the period for which refund is sought for. It is the amount of ITC taken by the taxpayer through Table 4 of his GSTR3B return of the tax period refund is sought for.

Q.9 What are the relied upon documents I have to submit with refund application for ITC refund?

Ans: You have to provide all the documents as are required to be filed along with RFD-01A as notified under CGST/SGST Rules and other such documents the refund sanctioning authority may require.

Q.10 To whom should I file my application with?

Ans: The taxpayer shall take the print of RFD-01A application filed by him on GST Common Portal and processed by the system and file the application along with relied upon documents with the jurisdictional officer. For refund of IGST paid on export of goods, there is no need to file separate refund application, the Shipping Bills are treated as refund applications filed by the taxpayers.