Q.1 How can I get my refund of ITC on account of supplies made to SEZ Unit/ SEZ Developer (Without Payment of Tax)?
Ans: You may comply with the activities as specified below:
1. You have to file refund application in Form RFD-01 at GST Portal and you can file for refund of multiple tax period in one refund application.
2. You have to provide turnover of Zero-Rated supplies to SEZ unit and SEZ Developer and Adjusted Total Turnover for the period refund is sought for.
3. The Net ITC in table “Computation of Refund to be claimed” is auto-populated by the system and can be edited downwards considering net ITC availed for the heads of CGST/SGST/IGST together and Cess in the return for the respective tax period for which refund is claimed excluding any ITC related to Capital Goods and transition ITC that may have been posted in the ledger on account of transition ITC claims in the said period as well as refund claimed under Rule 89(4A) (deemed export) and/ or (4B) (merchant exporter or export).
4. System will auto calculate the eligible refund amount and post in the last column of table “Maximum refund amount to be claimed.”
5. The system also indicates balances in each head of the taxpayer’s Electronic Credit ledger at the end of the tax period (balance amount remaining after the return for the said period is filed) and the balance when he is filing the refund application.
6. The taxpayer has to enter the amount of refund claimed in such a manner that the amount in each head is equal to or lower than the lowest balance in each head of Electronic Credit Ledger indicated above and the total refund should not exceed the “Maximum Refund that can be claimed”.
7. Applicant has to be careful while furnishing values in Form RFD-01, as no rectification in application is allowed after its filling.
8. Applicant has to ensure that he has filed the Form GSTR-1 and Form GSTR- 3B for the all the tax periods pertaining to which Refund is claimed.
9. Balance in ITC ledger should be sufficient in each head (IGST/CGST/SGST/UTGST/CESS).
10. He should have supplied goods/service on account of which he is claiming ITC refund. In case of Supply of Goods, taxpayer need to provide Shipping Bill/Bill of Export/Endorsed Invoice No. and respective date details.
11. Once Application Reference Number (ARN) is generated, refund application filed shall be assigned to Jurisdictional Refund Processing Officer for processing.
12. Refund applicant can track the status of refund application filed using “Track Application status” functionality on the portal.
Note: Form RFD-01 for a period can be filed only after filing of valid Form GSTR-1 and Form GSTR-3B for that particular Return Period.
13. The Document details given under Form GSTR-1/ Table 6B of Form GSTR-1 and given under refund statement should be same.
Q.2 What are the relied upon documents which I have to upload with refund application for ITC refund?
Ans: You have to upload documents as are required to be filed along with Form RFD-01 as notified under CGST Rules or Circulars issued in the matter and other such documents the refund sanctioning authority may require. Statement 5 shall be uploaded by taxpayer for claiming refund having details of documents.
Q.3 What are the preconditions for filing a refund application on account of supplies made to SEZ unit / SEZ developer (without payment of tax)?
Ans: The following conditions must be met for being eligible to file the refund application in form GST RFD-01 to claim refund on account of supplies made to SEZ unit / SEZ developer (without payment of tax):
1. The Taxpayer is registered with GST Portal and holds an active GSTIN during the period for which refund is being applied for.
2. Form GSTR-1 and Form GSTR-3B must have been filed for all the tax periods for which refund is intended to be claimed.
3. The taxpayer has made supplies to SEZ unit/ SEZ Developer.
Q.4 Which amounts are eligible for refund on account of supplies made to SEZ unit / SEZ developer (without payment of tax)?
Ans: Refund application on account of supplies made to SEZ unit / SEZ developer (without payment of tax) can be filed for the amount that is lowest of the following:
1. Balance in Electronic Credit Ledger at the end of the tax period/periods for which refund is claimed (balance remaining after return for that period/periods filed)
2. Balance in Electronic Credit ledger at the time of filing of refund application
3. Eligible amount calculated based on formula, calculated as “(((Turnover of Zero Rated Supply of Goods and Services) x (Net Input Tax Credit)) ÷ Adjusted Total Turnover)”
Note: For more details, please refer the User Manual that provides step-by-step instructions on filling-out form RFD-01 and filing the refund application for claim on account of supplies made to SEZ unit / SEZ developer (without payment of tax).
Q.5 To whom should I file my application with?
Ans: The taxpayer shall file the refund application in Form RFD-01 on GST portal. After filing, refund application shall be assigned to Refund Processing Officer and refund applicant can track the status of refund application.
Q.6 Can I file for multiple tax periods from two different financial years in one refund application?
Ans: Yes, you can file for multiple tax periods from two different financial years in one refund application.
Q.7 Can I file nil refund for multiple tax period in one refund application?
Ans: Yes, you can file for nil refund for multiple tax period in one refund application.
Q.8 Can nil period of refund be combined with the period in which there is refund in one application?
Ans: Yes, nil period of refund 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.
Q.9 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 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.
Q.10 Whether I would be able to file refund application without uploading statement of documents?
Ans: No. Statement of documents 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. Only after this data is validated, the taxpayer would be able to file the refund application.
Q.11 From where can I download the utility to upload the statement?
Ans: Navigate to Services > Refunds > Application for Refund > Select the refund type > Download Offline Utility link.
Q.12 What is the purpose of Download Offline Utility to upload the statement?
Ans: Download Offline Utility is provided to enter and upload details in Statement 5 of documents against which refund is being claimed.
Q.13 Details of which documents are to be entered in the Statement 5 available as Download Offline utility?
Ans: Download Offline Utility is provided to enter and upload document details in Statement 5. Under the column Document Type applicant has to select as Invoice/Debit Note/Credit Note and details of these are to be provided in the Statement 5. Multiple Debit note or Credit note issued against invoices can also be entered in this statement.
Q.14 What is the significance of VALIDATE STATEMENT button?
Ans: Validate Statement button is used to validate document data provided by the taxpayer from Form GSTR-1 declared data.
Q.15 Can I change data after clicking the VALIDATE STATEMENT button?
Ans: Yes, you can change 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 documents again if needed.
Q.16 What is the purpose of Download Unique Documents?
Ans: To download the documents that have been uploaded successfully on the GST Portal, you can click on the hyperlink Download Unique Documents.
Q.17 What is the purpose of Download Invalid Documents?
Ans: To download the documents that have not been uploaded successfully along with error details on the GST Portal, you can click on the hyperlink Download Invalid Documents.
Q.18 I am getting a message “validated with error” while uploading statement on the GST Portal. What do I do?
Ans: In case any statement is validated with error, click the Download Invalid Document link. Open the invalid document 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.
Q.19 I have uploaded statement which has been validated on the GST Portal. I need to upload a new statement of documents again. What do I do?
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 documents again if needed.
Q.20 I am getting error that “Future date is not allowed for Document” while uploading statement on the GST Portal using the offline utility even if I am providing correct document dates. Why?
Ans: For offline utilities, there is no server date available and hence the utility will have to depend on local system date for validation. In case your system has incorrect date, such issues can come.
Q.21 Can I preview the refund application before filing?
Ans: Yes, you can preview the refund application in PDF format to check for any inconsistency or discrepancy before filing on the GST Portal.
Q.22 What is the purpose of giving declaration while filing refund application on account of supplies made to SEZ unit / SEZ developer (without payment of tax)?
Ans: The purpose of this declaration is to certify that the SEZ unit/ SEZ developer has not availed ITC of the tax paid by the applicant, which is covered under this refund claim.
Q.23 How can I track the status of application for refund?
Ans: To track your filed application, navigate to Services > Refunds > Track Application Status option.
Q.24 What is ARN?
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.
Q.25 Where can I download my filed refund application?
Ans: Navigate to Services > User Services > My Applications link to download your filled/filed refund application.
Q.26 What happens when refund application on account of supplies made to SEZ unit/ SEZ developer (without payment of tax) is filed?
Q.27 Can I view the details of refund claimed in Electronic Credit Ledger?
Ans: Yes, you can view the debit entry in the Electronic Credit Ledger for the amount claimed as refund.
Q.28 When / how will the refund Form RFD-01 be processed?
Ans: Once the ARN is generated on filing of refund application in Form RFD-01, 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.
(Republished with amendments)
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