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.


> 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.

Role of GSTR 3B Form

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Company: VMH & CO
Location: BANGALORE, Karnataka, IN
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November 2020