Refund under GST
Section 54 of CGST Act deals with Refund of Tax, it states that any registered person claiming refund of Tax or Interest may make an application in GST RFD-01 before expiry of 2 years from the relevant date. However, in case of Refund of balance in electronic cash ledger, application may be filed through the return or the person may also file GST RFD-01A.
Relevant Date:
| 1. | In case of export of Goods
– by sea or air – by land – by post |
Date on which
– ship or aircraft leaves India – goods pass the frontier – goods are dispatch by Post Office |
| 2. | In case of deemed exports | date on which the return relating to such deemed exports is furnished; |
| 3. | In case of export of Services
– where supply had been completed prior to receipt of payment – where payment had been received in advance prior to the issue of the invoice |
Date of
– receipt of payment in convertible foreign exchange – issue of invoice |
| 4. | In case of a judgement, decree or Order of App. Authority, App. Tribunal or any court. | Date of communication of such judgement or order. |
| 5. | In case of unutilized ITC | End of the FY in which such claim for refund arises. |
| 6. | In the case where tax is paid provisionally | date of adjustment of tax after the final assessment |
| 7. | In any other case | Date of payment of tax |
Step by Step Process
Step 1: Submit refund pre-application form
(Services > Refund > Refund pre-application form)
In pre-application form Taxpayers need to fill the basic details about the business, namely:
- Nature of business (whether Manufacturer, Merchant Exporter, Service Provider or Trader)
- Date of issue of IEC (in case of exporter)
- Aadhar Number
- Value of Exports in FY (in case of exporter)
- Income tax paid in FY
- Advance Tax paid in FY
- Capital expenditure and investments made in FY
Step 2. Select Refund Type
(Services > Application for Refund)
RFD-01 may be filed for the following types of GST Refund claims
- Refund of Excess cash balance in electronic cash ledger.
- Refund of ITC due to exports of goods and services without payment of tax.
- Refund on account of ITC due to supplies made to SEZ unit/SEZ developer (without payment of tax).
- Refund on account of Tax paid on supplies made to SEZ units/SEZ developers (with payment of tax).
- Refund on account of ITC accumulated due to inverted tax structure (tax on inputs higher than a tax on outputs).
- Refund by recipient of deemed export
- Refund by supplier of deemed export
- Refund for IGST paid on export of services (with payment of tax).
- Tax paid on an intrastate supply later held as interstate supply and vice versa.
- Excess payment of Tax
- on account of assessment/ appeal/ order
- Any other (Specify)
Step 3. Select the Period
After specifying the type of refund the taxpayer need to specify the period for which refund is applied (month and year).
Step 4. Enter the required details
Next step is to enter the details required for different types of refunds. This is the most crucial step in our process, here the taxpayer will get the details relevant for the Refund Type he selected in Step 2.
| Type 1 | Refund of Excess cash balance in electronic cash ledger | Here you you’ll see a screen showing the amount available in e-cash ledger under IGST, SGST and CGST and you need to mention the amount of refund claimed. |
| Type 2 | Refund of ITC due to exports of goods and services w/o payment of tax | · Download the offline utility for statement 3 and fill in the required details – of documents issued (Invoice, Debit & Credit Notes), Shipping bills or Bill of Exports, EGM Details and FIRC/ BRC (Forex receipt).
· After entering the relevant details you’ll have to upload the json file and validate. · Enter details in Statement 3A – Turnover of Zero rated Supply and Adjusted Turnover · System will calculate the maximum refund that can be claimed. |
| Type 3 | Refund on account of ITC on supplies made to SEZ unit/ SEZ developer (w/out payment of tax) | Statement 5 (Steps same as Type 2) |
| Type 4 | Refund on account of Tax paid on supplies made to SEZ units/SEZ developers (w/ payment of tax). | Statement 4 (Steps same as Type 2) |
| Type 4 | Refund on account of ITC accumulated due to inverted tax structure | Statement 1A (Steps same as type 2. |
| Type 5 | Refund by recipient of deemed export | Statement 5B (Steps same as Type 2) |
| Type 6 | Refund by supplier of deemed export | Statement 5B (Steps same as Type 2) |
| Type 7 | Refund for IGST paid on export of services (with payment of tax) | Statement 2 (Steps same as Type 2) |
| Type 8 | Tax paid on an intrastate supply later held as interstate supply and vice versa. | Statement 6 ( Steps same as Type 2) |
| Type 9 | Excess payment of Tax | Enter the details of GSTR 3B in which excess payment was done. |
| Type 10 | on account of appeal/ assessment/ order | Select the type of order and mention the following details
– Order No. – Order Date – Order issuing authority – Amount of refund claimed |
| Type 11 | Refund for any other reason | Mention the reason(Max 200 Characters) and the amount of refund claimed. |
Step 5: Enter the bank details
Select the bank Account No. from the dropdown list. In case your preferred Bank is not appearing in dropdown list, please add the Bank Account by filing non-core amendment of registration form.
Step 6. Upload the supporting documents
- Max 10 Supporting documents can be attached.
- Max file size for upload is 5MB each.
Step 7. File RFD 01 – using DSC or EVC
After filing of RFD 01 the taxpayer will get Refund ARN receipt and the application is thereafter assigned to refund processing officer.