How can I submit the application for refund of ITC on account of Exports without payment of Tax on the GST Portal?

To submit the application for refund of ITC on account of Exports without payment of Tax on the GST Portal, perform the following steps:

1. Access the https://www.gst.gov.in/ URL. The GST Home page is displayed.

2. Click the Services > Refunds > Application for Refund command.

Image 1

The Select the refund type page is displayed. Select the Refund of ITC on Export of Goods & Services without Payment of Integrated Tax option.

Note:

1. Please enter the same turnover of zero rated supply of goods and services (Column 1) under all heads (Integrated, Central, State and Cess).

2. Please enter the same Adjusted total turnover (Column 3) under all heads (Integrated, Central, State and Cess).

Note: “Adjusted Total Turnover” means the turnover in a State or a Union Territory, as defined under clause (112) of section 2, excluding the value of exempt supplies other than zero-rated supplies, during the relevant period.

Net Input Tax Credit: Input tax credit availed on inputs and input services during the relevant period

Turnover of zero rated supply of goods: Value of zero-rated supply of goods made during the relevant period without payment of tax under bond or letter of undertaking

Turnover of zero rated supply of services: Value of zero-rated supply of services made without payment of tax under bond or letter of undertaking

3. Click the CREATE button. Select the Financial Year which application has to be filed from the drop-down list.

4. Select the Month for which application has to be filed from the drop-down list.

5. Click the CREATE button.

Image 2

6. In the Table Computation of refund to be Claimed (Statement 3A): –

Image 3

In Column (1) of Turnover of zero rated supply of goods and services (1), enter the turnover of zero rated supply of goods and services under same head i.e. IGST. CGST, SGST enter the same turnover. The said Turn-over of Zero-rated supply may be taken from the column 3.1 (b) of the FORM-GSTR-3B. Presently it is not prepopulated.

In Column (2) of Net input tax credit, enter the Net Input Tax credit for Integrated Tax, Central Tax, State/ UT Tax and Cess separately. Do not club this amount. The figures of Net Input Tax Credit (ITC) in column (2) of table above may be taken from the column 4(C) of the FORM-GSTR-3B respectively. Presently it is not prepopulated.

In Column (3) of Adjusted total turnover, enter the adjusted total turnover. You need to mention the same turnover under all heads.

Refund amount will be determined by using the formulae given in rule 89(4) of the CGST/SGST/UTGST Rules which is as under:

Refund Amount= (Turn-over of Zero-rated supply of Goods+ Turn-over of Zero-rated supply of services) X Net ITC/Adjusted Total Turn-over.

Where –

(A) “Refund amount” means the maximum refund that is admissible;

(B) “Net ITC” means input tax credit availed on inputs and input services during the relevant period;

(C) “Turnover of zero-rated supply of goods” means the value of zero-rated supply of goods made during the relevant period without payment of tax under bond or letter of undertaking;

(D) “Turnover of zero-rated supply of services”means the value of zero-rated supply of services made without payment of tax under bond or letter of undertaking, calculated in the following manner, namely:- Zero-rated supply of services is the aggregate of the payments received during the relevant period for zero-rated supply of services and zero-rated supply of services where supply has been completed for which payment had been received in advance in any period prior to the relevant period reduced by advances received for zero-rated supply of services for which the supply of services has not been completed during the relevant period;

(E) “Adjusted Total turnover” means the turnover in a State or a Union territory, as defined under clause (112) of section 2 of CGST Act, excluding the value of exempt supplies other than zero-rated supplies, during the relevant period;

(F) “Relevant period” means the period for which the claim has been filed.

The Refund Amount will be auto-calculated based on formula.

After filling the appropriate figures in the table (3A), the amount of refund will get auto populated in the column (4) of the Second “Amount Eligible for Refund Table”. 

Image 4

The values as computed in the Refund Amount column in previous table is auto-populated in the Values as per Statement 3A column.

  • In Column “Value of Refund Amount as per Statement 3A” amount is reflected from the column 4 of the 3A table.
  • In Column “Balance in Electronic Credit Ledger” amount is reflected from the current ITC ledger (Matched ITC).
  • In column “Tax Credit Availed during the Period” amount is reflecting from  ITC ledger as the total of ITC availed in that period, for which Refund is being claimed.
  • Refund amount is allowable is auto populated in the last Column of “Eligible amount (lowest of all) under corresponding head.

Refund Amount to be claimed’ will be lowest from the table column of the below three:

  • Formulae value of Refund Amount as per Statement 3A
  • ITC Ledger Balance as on date (Matched/Confirmed ITC)
  • ITC Availed for the return period mentioned in Refund Application

7. Select the Bank Account Number from the drop-down list.

8. Click the SAVE button.

Note: To view your saved application, navigate to Services > Refunds > My Saved/Submitted Application command.

Application 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.

Image 5

9. Select the declaration checkbox.

10. Click the PROCEED button.

Image 6

11. Select the Verification checkbox.

12. In the Name of Authorized Signatory drop-down list, select the name of authorized signatory.

13. Click the SUBMIT WITH DSC or SUBMIT WITH EVC button.

Image 7

In Case of DSC:

14. Click the PROCEED button.

15. Select the certificate and click the SIGN button.

In Case of EVC:

14. Enter the OTP sent to email and mobile number of the Authorized Signatory registered at the GST Portal and click the VERIFY button.

Image 8

The success message is displayed and status is changed to Submitted. Application Reference Number (ARN) receipt is downloaded and also sent on your e-mail address and mobile phone number. Click the PDF to open the receipt.

Image 9

ARN receipt is displayed.

 Image 10

A debit entry shall be made in the Electronic Credit Ledger for the amount claimed as Refund in the Refund Claim Matrix.

Navigate to Services > Ledgers > Electronic Credit Ledger.

image 11

The Electronic Credit Ledger is displayed.

Image 12

More Under Goods and Services Tax

Posted Under

Category : Goods and Services Tax (6846)
Type : Articles (16980)
Tags : goods and services tax (5332) GST (4935)

6 responses to “Refund of ITC on Account of Exports Without Payment of Tax- Procedure”

  1. Rajesh Tanna says:

    There is a lacuna in the system. If have exported under LUT in month say March. I have purchase raw materials say in, Jan, Feb & march. The present system allows only refund of ITC availed in March only. Leaving us almost without refund situation.

    Is there any way out ?

    • doshi says:

      we are also facing the same issue, Mr.Rajesh and running from pillar to post for help. pls let us know incase you find any solution and incase if we do, will let you know.

    • MANOJ says:

      WE R ALSO FACING SAME ISSUES, IF ANYONE KNOWS PLZ HELP, WE PURCHASED RAW MATERIAN IN JAN AND EXPORTED IN FEB, BUT SYSTEM NOT PROCESSING JAN REFUND AS IT NEEDS SHIPPING BL AND INVICE FOR JAN ONLY.
      PLZ HELP IF SOMEONE KOWS

  2. s p mehta says:

    Very useful article explained in most simple manner Thank you

  3. s p mehta says:

    Well explained in simple way..thank you.. very useful article

  4. M N SARMA says:

    Very nice article Sir. Useful too.

Leave a Reply

Your email address will not be published. Required fields are marked *