CA Dilip Jain
Provisions of refund of taxes are very important as delay would adversely impact exporters, manufacturers. Looking to the concern of the exporters especially of services, the GST provisions for refund are simpler.
There are four types of Refunds Available in GST:
◊ Unutilized Input Tax Credit
◊ Balance in Electronic Cash Ledger
◊ Advance Tax deposited by Casual Taxable Person or Non Resident
◊ Refund of Embassy, Agency of UNO
1. A Registered Person shall be eligible for Refund of Unutilized Credit in Following Situations:
◊ Exporter of Goods or Services
◊ Supply to SEZ Unit or Developer
◊ Rate of tax on Input is higher than Rate of Tax on Outputs
2. He can Claim Refund of Unutilized ITC by Filing Form RFD-01 within 2 Years from relevant date.
3. A Registered Person shall not be eligible for Refund in following cases:Online GST Certification Course by TaxGuru & MSME- Click here to Join
◊ If Supplier avails drawback in respect of CGST or Claims refund of IGST.
◊ Goods Exported out of India were Subject to Export Duty.
1. A Registered person can claim refund of balance in Electronic cash Ledger by Filing Form RFD 01 or GSTR-3, GSTR-4, GSTR-7 as may be applicable.
2. He can claim refund within 2 years from relevant date.
1. They shall be eligible for refund if Furnishes all the return required under Section 39.
2. They can Claim Refund by Filing form RFD-01 or in the last Return within 2 Years from relevant date.
1. They can claim refund by Filing Form RFD-10 Quarterly within 6 month from the quarter end of receipt of Supply.
Meaning of Relevant Date:
Export of Goods: When ship or aircraft leaves India or goods pass the frontier or goods are Dispatched by Post Office.
Deemed Export: When return of such deemed exports is filed.
Person other than Supplier: Date of Receipt of Such Goods or Services by Person.
Export of Services: 1. Receipt of CFE, if supply of service is prior to the receipt of such Payment.
2. Issue of invoice, if payment is received prior to the invoice date.
Consequence of judgment, order or direction of Appellate Authority: Date of communication of such judgment, order, etc.
Unutilized Input Tax Credit: End of the F.Y. in which such refund claim arises.
Provisional Payment of Tax: Date of tax adjustment after the final Assessment
Other Cases: Date of payment of Tax.
Procedure of Claiming Refund:
Transfer to Consumer Welfare Fund:
◊ If prescribed procedure is not followed, the amount of Refund Will be transfer to Consumer Welfare Fund.
◊ Following cases Refund is not transferred to Consumer Welfare Fund:
Interest on Delayed Refunds: