Introduction:

In this video / Article, we will understand following:

a) Type of refund to exporters under GST

b) Process of refund to exporter under GST

c) Documents required for refund under GST

d) Relevant dates for refund applications under GST for exports

e) Various time lines for Export refunds

Type of Refund to Exporters Under GST

As we know there are two options to exports under GST. Refund procedure for both the option is different.

Option – 1 Exports made on payment of IGST System designated by custom shall process the claim for refund and amount shall be credited on bank account of applicant. No separate application is required as shipping bill itself will be treated as refund application.
Option – 2 Export without payment of IGST Refund shall be processed based on refund application filled via FORM GST RFD – 1A to jurisdictional officer.

Process of refund to exporter under GST

Step 1: Filling Form GST RFD-01/1A: First step for refund is to file refund application in GST FORM – 01 or GST FORM – 1A on common portal.

Step 2: Submission of application to Jurisdictional officer: The common portal shall generate Acknowledgement receipt number which would be submitted to jurisdictional proper officer along with GST RFD FORM – 01/1A along with supporting documents.

Step 3: Initial scrutiny of the documents by the proper officer: After scrutiny of application, Deficiency Memo in GST RFD-03 or Acknowledgement in GST RFD-02 will be issued within 15 days from the date of application submitted under Step – 2.

Step 4: Grant of Provisional Refund: Provisional refund shall be granted within 7 days of acknowledgement and shall be credited directly to the bank account of applicant of acknowledgement in GST RFD-04. Payment advice shall be issued in FORM GST RFD – 05.

Step 5: Detailed scrutiny of refund application: Following will be scrutinised in detail by officer:

a. Refund statement detail with GSTR – 1 and GSTR-6A.

b. Shipping bill details shall be checked at ICEGATE Site.

c. Detail of IGST paid on Inputs with GSTR-3 and GSTR-3B.

d. Refund applied should be less than IGST paid on Inputs.

e. Any adjustment in refund amount shall be made via GST RFD-07.

Step 6: Refund amount is less then refund claim: In such case

a. Notice has to be issued to the applicant in FORM GST RFD-08.

b. The application has to be reply within 15 days of receipt of notice.

Step 7: Final order of refund: Final order to be made in form GST RFD-06.

Documents required for refund application:

Following documents shall be accompanied by Refund Application:

Refund Type Document required Statement
Where refund is on account of exports of goods Statement containing:
a. the number and date shipping bills or bills of export.
b. the number and date of the relevant export invoices.
Statement – 3A
Where refund is on account of exports of Services Statement containing:
a. The number and date of invoices. and
b. The relevant bank realisation certificates or FIRC.
Statement – 3
Deceleration to be enclosed a. Self – deceleration regarding incident of tax has not been passed further under rule 89(2)(i).

b. Certificate from Chartered accountant or cost accountant regarding incident of tax has not been passed further under rule 89(2)(m).

c. Self – deceleration regarding goods are exported are not subject to export duty.

d. Self – deceleration regarding refund of ITC claimed does not contain ITC availed on goods or services used for making ‘nil’ rated or fully exempt supplies.

Relevant dates for refunds:

The refund application shall be made within 2 years from relevant date. Relevant dates has been explained as below.

Where Goods are Exported out of India
By Sea or AIR the date on which the ship or the aircraft in which such goods are loaded, leaves India
By Land the date on which such goods pass the frontier
By Post the date of despatch of goods by Post Office concerned to a place outside India
Where Services exported out of India
the date of

receipt of payment in convertible foreign exchange, where the supply of service had been completed prior to the receipt of such payment; or

issue of invoice, where payment for the service had been received in advance prior to the date of issue of the invoice;

Various Time Lines for Export Refunds

Form Name Purpose Time Line
GST RFD – 01 Application for Refund Within 2 yrs from relevant dates
GST RFD – 01A Application for Refund (Manual) Within 2 yrs from relevant dates
GST RFD – 02 Acknowledgment Within 15 days from the date of application
GST RFD – 03 Deficiency Memo Within 15 days from the date of application
GST RFD – 04 Provisional Refund Order Within 7 days from the date of GST RFD-02
GST RFD – 05 Payment Advice Within 7 days from the date of GST RFD-02
GST RFD – 06 Refund Sanction/Rejection order Within 60 days from the date of GST RFD-02
GST RFD – 07 Order for complete adjustment of sanctioned refund – Part A Within 60 days from the date of GST RFD-02
GST RFD – 07 Order for complete adjustment of sanctioned refund – Part B Within 60 days from the date of GST RFD-02
GST RFD – 08 Notice for rejection of application for refund Within 60 days from the date of GST RFD-02
GST RFD – 09 Reply to show cause notice Within 15 days from the date of GST RFD-08

Author Bio

Qualification: CA in Practice
Company: V J M & Associates
Location: Delhi, New Delhi, IN
Member Since: 24 Dec 2017 | Total Posts: 1
V J M & Associates was established by team of young jubilant professionals, geographically located in the heart of capital of India i.e. Delhi city. We have branches in Delhi and Mumbai. The strength of VJM & Associates lies in its ability to combine in-depth knowledge of cross sections o View Full Profile

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One response to “Refund to Exporters under GST”

  1. Subhash Modi says:

    In the print and the audio the word to be correctly used is ‘declaration’ and not ‘decelaration’.

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