Under the GST regime, there will be a standardized form for making any claim for refunds. The claim and sanctioning procedure will be completely online and time bound, which is a marked departure from the existing time consuming and cumbersome procedure.
Situations When We Claim Refunds:
> Export of goods or services
> Supplies to SEZs units and developers
> Deemed exports
> Refund of taxes on purchase made by UN or embassies etc.
> Payment of duty / tax during investigation but no/ less liability arises at the time of finalization of investigation / adjudication.
> Refund of accumulated Input Tax Credit on account of inverted duty structure
> Refund of pre-deposit
> Excess payment due to mistake
> Refunds for International tourists
> Refund of CGST & SGST paid by treating the supply as intraState supply which is subsequently held as inter-State supply and vice versa.
Time limit for claiming Refund:
The GST law requires that every claim for refund is to be filed within 2 years from the relevant date.
Refund Process:
- Application form for claiming refund can be filed through through www.gst.gov.in.
- An acknowledgement number would be shared with applicant via sms or email, once the application is filed electronically.
- Adjustment would be made to return and cash ledger and reduce the “carry-forward input tax credit” automatically.
- Refund application and documents submitted shall be scrutinized within a period of 60 days of filing the refund application.
- Refund will be credited electronically to the account of applicant via ECS, RTGS or NEFT.
- Application for refund can be made at end of each quarter.
- No refund shall be provided for an amount of less than Rs 1000.
Delay in Refund and Interest
As per Section 56 of the CGST Act, 2017 a refund application is to be processed within a period of 60 days. If the refund application is not processed within said period then a interest at the rate of 6% & 9% is recommended. However, if the refund claim is on account of pre-deposit made before any appellate authority, the interest becomes payable from the date of making such payment.
Documentation:
> For every claim, the main document prescribed is a statement of relevant invoices, pertaining to the claim.
> In export of services, apart from the statement of invoices, also submit the relevant bank realization certificates evidencing receipt of payment in foreign currency is also required.
> Declaration for SEZ unit that they have not availed ITC.
For refund claims exceeding Rs. 2 Lakhs, a certificate from a Chartered Accountant/Cost Accountant will have to be given.
Author Bio
