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Refunds

Section / Rules Who can Apply Eligibility Form and Time Conditions
54(1) r.w. Refund Rules 89(1) Any person, except the persons covered by notification issued under section 55 Any Tax, Interest, Penalty, Fees or any other amount paid other than refund of integrated tax paid on goods exported out of India. Apply on or before the expiry of two years from the relevant date in Form GST-RFD-01 File application electronically through common portal either directly or through a Facilitation Centre notified by the Commissioner.
Provided that a registered person, Claiming refund of any balance in the electronic cash ledger may claim such refund in the return form itself. Form GSTR-3 or Form GSTR-4 or Form GSTR-7 as the case may be.
54(2) r.w. Refund Rules 89(1) Person notified u/s. 55
  • Specialised Agency of UNO, or any Multilateral Financial Institution and Organisation notified under the United Nations (Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries or any other person or class of persons
Refund of tax paid on inward supplies of goods or services or both. Apply, in Form GST-RFD-10, on or before the expiry of six months from the last day of the quarter in which such supply was received. File application electronically through common portal either directly or through a Facilitation Centre notified by the Commissioner.
Sec 54(1) r.w. 95
  • Canteen Store dept.
Refund of 50% of SGST & CGST or IGST paid, as the case may be.
54(3) r.w. sub. sec. 54(10) r.w. Refund Rules 89(1) A Registered person Any unutilised input tax credit at the end of any tax period in case of
  1. Exports of Goods or Services without payment of tax, or
  2. Supply of goods or Services to SEZ developer or a SEZ unit without payment of tax;
  3. Where rate of tax on input is higher than rate of tax on output supplies (other than nil rated or fully exempt supplies),
  4. Or as may be notified by the Government

 

Apply on or before the expiry of two years from the relevant date in Form GST-RFD-01 If all GST returns are not filed or if any outstanding taxes, interest, or penalty, (if not stayed by any Court, Tribunal or Appellate Authority,)remains payable then the proper officer may:
  1. Withhold payment of refund until the return is filed or tax, interest or penalty is paid.
  2. Deduct from the refund due, any tax, interest, penalty, fee or any other amount unpaid under this law or under the existing laws.

No refund of unutilised input tax credit shall be allowed in cases where:

  1. Export duty is levied on goods exported out of India:
  2. The supplier of goods or services avails drawback in respect of Central tax or claims refund of integrated tax paid on such supplies.

• Other Conditions:

  • In case of export of goods, application for refund shall be filed only after the export manifest or an export report is delivered under section 41 of the Customs Act, 1962:
  • In respect of supplies to a SEZ unit or a SEZ developer, the application for refund shall be filed by the supplier of goods after such goods have been admitted in full in the SEZ for authorised operations, as endorsed by the specified officer of the Zone:
  • In respect of supplies to a SEZ unit or a SEZ developer, the application for refund shall be filed by the supplier of services along with such evidence regarding receipt of services for authorised operations as endorsed by the specified officer of the Zone:
  • In respect of supplies regarded as deemed exports, the application shall be filed by the recipient of deemed export supplies:
  • In case of deemed export were recipient not availing input tax credit on such supplies and furnishes an undertaking to the effect that the supplier may claim the refund.
  • In case of refund of advance tax payment made by a Casual taxable person or Non-resident taxable person, refund shall be claimed, after adjusting the tax payable by the applicant, in the last return required to be furnished. Such refund shall not be refunded unless all returns in GST are filed [Sec. 54(13)]

Relevant date for supply of GOODS Means:

Refund Available On Goods exported Relevant Date
• Tax paid on export or

• Tax paid on Inputs or Input services used in such goods

By Sea /Air The date when Ship /Aircraft leaves India
By Land (Road) The date when the goods pass the frontier
By Post The date when goods are dispatched by Post office
• Refund of tax paid in respect of the goods In case of deemed exports The date when return is filed

Relevant date for supply of SERVICES means:

Refund Available On Services exported Relevant Date
• Tax paid on export or Date of receipt of Payment in forex Where supply is completed before receipt of payment
• Tax paid on Inputs or Input services used in such goods Date of issue of Invoice Where payment is received in advance

• Any of the following documentary evidences in Annexure 1 of Form GST RFD-01 to establish the refund is due: [Sections 54(4) r.w. Rule 89(2)]

  • The reference number of the order and a copy of the order passed by the proper officer or an Appellate Authority or Tribunal or Court resulting in such refund
  • Reference number of the part payment made [Section 107(6)] in case of appeal to Appellate Authority.
  • Reference number of the part payment made [Section 112(8)] in case of appeal to Appellate Tribunal.
  • Statement containing the number and date of shipping bills or bills of export and the number and date of relevant export invoices in case of export of goods.
  • Statement containing relevant Bank Realisation Certificates or Foreign Inward Remittance Certificates in a case where the refund is on account of the export of services.
  • Statement containing the number and date of invoices along with the evidence regarding endorsement specified in the second proviso to sub-rule (1) in case of supply of goods made to a Special Economic Zone unit or a Special Economic Zone developer;
  • Statement containing the number and date of invoices, the evidence regarding endorsement specified in the fourth proviso to sub-rule(1) and the details of payment, along with proof thereof, made by the recipient to the supplier for authorised operations as defined under the Special Economic Zone Act, 2005, in a case where the refund is on account of supply of services made to a Special Economic Zone unit or a Special Economic Zone developer
  • Declaration to the effect that the Special Economic Zone unit or the Special Economic Zone developer has not availed of the input tax credit of the tax paid by the supplier of goods or services or both, in a case where the refund is on account of supply of goods or services made to a Special Economic Zone unit or a Special Economic Zone developer;
  • Statement containing the number and date of invoices along with such other evidence as may be notified in this behalf, in a case where the refund is on account of deemed exports;
  • Where the claim pertains to refund of any unutilised input tax credit where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies a statement in Annex 1 of FORM GST RFD-01 containing the number and date of invoices received and issued during a tax period.
  • The reference number of the final assessment order and a copy of the said order in a case where the refund arises on account of finalisation of provisional assessment;
  • Statement showing the details of transactions considered as intra-State supply but which is subsequently held to be inter-State supply;
  • Statement showing the details of the amount of claim on account of excess payment of tax;
  • A declaration to the effect that the incidence of tax, interest or any other amount claimed as refund has not been passed on to any other person, in a case where the amount of refund claimed does not exceed 2 lakh rupees

Not required in the following cases:

  • Refund of tax paid on zero-rated supplies of goods or services or both or on inputs or input services used in making such zero-rated supplies;
  • Refund of unutilised input tax credit under sub-section (3); refund of tax paid on a supply which is not provided, either wholly or partially, and for which invoice has not been issued, or where a refund voucher has been issued;
  • Refund of tax in pursuance of section 77;
  • The tax or interest borne by such other class of applicants as the Government may, on the recommendations of the Council, by notification, specify

• The following documentary evidences in Annexure 2 of Form GST RFD-01 to establish the refund is due: [Sections 54(4) r.w. Rule 89(2)]

  • CA/Cost Accountant certificate to the effect that incidence of tax, interest or any other amount claimed as refund has not been passed on to any person, where the Refund Amount is greater than Two Lakhs rupees. (In case where Refund Amount is less than Two Lakhs Rupees, it is not necessary)

    Not required in the following cases:

    • Refund of tax paid on zero-rated supplies of goods or services or both or on inputs or input services used in making such zero-rated supplies;
    • Refund of unutilised input tax credit under sub-section (3); refund of tax paid on a supply which is not provided, either wholly or partially, and for which invoice has not been issued, or where a refund voucher has been issued;
    • Refund of tax in pursuance of section 77;
    • The tax or interest borne by such other class of applicants as the Government may, on the recommendations of the Council, by notification, specify

On receipt of refund application the amount so determined by the proper officer shall be credited to the Consumer Welfare Fund by issuing an order within 60 days from the date of receipt of application – Sections 54(5), (7) r.w. Section 57. However, in following cases the refund amount will be paid to the applicant if such amount is relatable to any of the following:

  • Refund of tax paid on zero-rated supplies or on inputs or input services used in making such zero-rated supplies;
  • Refund of unutilised input tax credit.
  • Refund of tax paid on a supply which is not provided, either wholly or partially, and for which invoice has not been issued, or where a refund voucher has been issued;
  • Refund of tax wrongly collected and paid as per section 77 (Refer Section 19 of IGST);
  • The tax and interest or any other amount paid by the applicant, if he had not passed on the incidence of such tax and interest to any other person;
  • The tax or interest borne by such other class of applicants as the Government may notify.

• No refund will be granted if the amount is less than One Thousand rupees. Section 54(14).

The order of refund shall be passed within 60 Days of receipt of application complete in all aspects. Else the Officer will issue a notice for deficiencies & give opportunity of being heard.

  • If refund due is not credited to the applicant within 60 days, then interest not exceeding 6%, as may be specified shall be payable.
  • If refund due arising from an order passed by an adjudicating /Appellate Authority which has attained finality is not received within 60 days of application filed consequent to such order, then interest not exceeding 9%, as may be specified shall be payable.

• Refund amount in case of Zero-Rated Supply without payment of tax under bond or letter of undertaking: [Rule 89(4)]

  • Refund of input tax credit shall be granted as per the following formula:

    Turnover of zero
    rated Goods + Services   x Net ITC
    ___________________
    Adjusted Total Turnover
    (i.e. excluding exempt supplies)

    Where,-

  • “Refund amount” means the maximum refund that is admissible;
  • “Net ITC” means input tax credit availed on inputs and input services during the relevant period;
  • “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;
  • “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 = Total of payments received during the relevant period for zero-rated supply of service + zero-rated services where supply has been completed for which payment had been received in advance in any period prior to the relevant period - advances received for zero-rated services for which the supply of services has not been completed during the relevant period.
  • “Adjusted Total turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis) and exempt supplies made within a State or Union territory by a taxable person, exports of goods or services or both and inter-State supplies of goods or services or both made from the State or Union territory by the said taxable person but excludes Central tax, State tax, Union territory tax, integrated tax and cess and excluding the value of exempt supplies other than zero-rated supplies, during the relevant period;
  • “Relevant period” means the period for which the claim has been filed.

• Refund amount in case of Inverted Duty Structure: [Sec 54(3) & Rule 89(5)]

  • Maximum refund of input tax credit shall be granted as per the following formula:

    Turnover of inverted rated supply of Goods x Net ITC/

    Adjusted Total Turnover (i.e. excluding exempt supplies)

    Less

    Tax payable on such inverted rated supply of goods

    Where, -

  • “Net ITC” means input tax credit availed on inputs and input services during the relevant period;
  • “Adjusted Total turnover”¯ means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis) and exempt supplies made within a State or Union territory by a taxable person, exports of goods or services or both and inter-State supplies of goods or services or both made from the State or Union territory by the said taxable person but excludes central tax, State tax, Union territory tax, integrated tax and cess and excluding the value of exempt supplies other than zero-rated supplies, during the relevant period;

• Acknowledgment of Refund application (Rule 90): –

Application of refund relating to Form for acknowledgment Date considered for filing of refund claim Time period of 60 days for Section 54 (7)
Electronic Cash Ledger GST RFD-02 On the day the application is filed electronically. From date of filing of Form GST-RFD-02.
Other than claim from Electronic Cash Ledger GST RFD-02 Proper Officer will, within 15 days, scrutinize the application and then only application will be generated electronically. From the date mentioned in Form GST-RFD-02.

Proper Officer shall communicate deficiencies in application of refund in Form GST RFD-03. A fresh application of refund shall be filed after rectification of such deficiencies.

• Grant of Provisional Refund (Section 54(6) & Rule 91)

Provisional refund of 90% of the total amount claimed will be granted in case of any claim for refund on account of zero-rated supply made by registered persons, other than such category of persons as may be notified, excluding the amount of input tax credit provisionally accepted. The Officer shall thereafter make an order for final settlement of the refund claim after due verification of documents furnished by the applicant.

• Conditions for grant of Provisional Refund:

  • the person claiming refund has, during any period of five years immediately preceding the tax period to which the claim for refund relates, not been prosecuted for any offence under the Act or under an existing law where the amount of tax evaded exceeds two hundred and fifty lakh rupees.

Order of refund shall be in Form GST RFD-04 within a period not exceeding 7 days from the date of Acknowledgment of Refund application.

• Payment advice will be issued in Form GST RFD-04 and refund shall be electronically credited to any of the bank accounts mentioned in registration details.

• Order Sanctioning Refund (Rule 92)

  • After scrutinsing the books of accounts and arriving at due refund amount, the Proper Officer shall pass an Order in Form GST RFD-06. He shall also mention the amount refunded to the applicant provisionally as also the amount adjusted, if any, against any outstanding demand under the Act or under any existing law.
  • If the whole amount of refund is adjusted against any outstanding demand, an order of such adjustment shall be issued in Part A of Form GST RFD-07.
  • If any amount has to be withheld in case where any of the returns is pending to be filed, an order shall be issued in Part B of Form GST RFD-07 along with reasons for withholding the refund.

• Proper Officer shall issue a notice in Form GST RFD-08 intimating that whole or part of amount of refund is not payable to the applicant and such applicant is required to furnish a reply in Form GST RFD-09 within 15 days of receipt of such notice and then such Officer shall grant refund in Form GST RFD-06 allowing / disallowing the amount of refund in whole or in part.

• Where the proper officer is satisfied that the amount refundable under sub-rule (1) or sub-rule (2) is payable to the applicant under sub-section (8) of section 54, he shall make an order in FORM GST RFD-06 and issue a payment advice in FORM GST RFD-05 for the amount of refund and the same shall be electronically credited to any of the bank accounts of the applicant mentioned in his registration particulars and as specified in the application.

• If the Proper Officer is satisfied that amount is not payable to applicant, he shall make an order in Form GST RFD-06 and issue an advice in Form GST RFD-05 for the amount of refund to be credited to Consumer Welfare Fund.

• Credit of amount of rejected refund claim (Rule 93)

• Where deficiencies are communicated to the applicant or where the claim is rejected, the whole or part amount of refund amount so communicated or rejected shall be re-credited to electronic credit ledger by order in Form GST PMT-03.

• Order sanctioning interest on delayed refunds (Rule 94)

Proper Officer shall make an order along with a payment advice in Form GST RFD-05 specifying the amount delayed, period of delay and amount of interest payable and such amount along will be credited electronically to bank account of the applicant.

• Refund of tax to certain persons (Rule 95)

Specialised Agency of UNO, or any Multilateral Financial Institution and Organisation notified under the United Nations (Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries or any other person or class of persons, as notified shall apply for refund in Form GST RFD-10 once in every quarter along with statement of inward supplies in Form GSTR-11. Acknowledgment of receipt of application shall be in Form GST RFD-2

• Refund of tax paid by the applicant shall be available if:

  • The inward supplies were received from a registered person against a tax invoice and the price of the supply covered under a single tax invoice exceeds five thousand rupees, excluding tax paid, if any;
  • Name and GSTIN or UIN of the applicant is mentioned on the tax invoice; and
  • Such other restrictions or conditions as may be specified in the notification are satisfied.

Refund of integrated tax paid on goods exported out of India (Rule 96)

(1) The shipping bill filed by an exporter shall be deemed to be an application for refund of integrated tax paid on the goods exported out of India and such application shall be deemed to have been filed only when: -

  1. The person in charge of the conveyance carrying the export goods duly files an export manifest or an export report covering the number and the date of shipping bills or bills of export; and
  2. The applicant has furnished a valid return in FORM GSTR-3 or FORM GSTR-3B, as the case may be;
    • The details of the relevant export invoices contained in FORM
      GSTR-1 shall be transmitted electronically by the common portal to the system designated by the Customs and the said system shall electronically transmit to the common portal, a confirmation that the goods covered by the said invoices have been exported out of India. [Provided that where the date for furnishing the details of outward supplies in FORM GSTR-1 for a tax period has been extended in exercise of the powers conferred under section 37 of the Act, the supplier shall furnish the information relating to exports as specified in Table 6A of FORM GSTR-1 after the return in FORM GSTR-3B has been furnished and the same shall be transmitted electronically by the common portal to the system designated by the Customs: Provided further that the information in Table 6A furnished under the first proviso shall be auto-drafted in FORM GSTR-1 for the said tax period.]
    • Upon the receipt of the information regarding the furnishing of a valid return in FORM GSTR-3 or FORM GSTR-3B, as the case may be from the common portal, the system designated by the Customs shall process the claim for refund and an amount equal to the integrated tax paid in respect of each shipping bill or bill of export shall be electronically credited to the bank account of the applicant mentioned in his registration particulars and as intimated to the Customs authorities.
    • Upon transmission of the intimation the proper officer of central tax or State tax or Union territory tax, as the case may be, shall pass an order in Part B of FORM GST RFD-07.
    • Where the applicant becomes entitled to refund of the amount withheld under clause (a) of sub-rule (4), the concerned jurisdictional officer of Central tax, State tax or Union territory tax, as the case may be, shall proceed to refund the amount after passing an order in FORM GST RFD-06.
    • The Central Government may pay refund of the integrated tax to the Government of Bhutan on the exports to Bhutan for such class of goods as may be notified in this behalf and where such refund is paid to the Government of Bhutan, the exporter shall not be paid any refund of the integrated tax.

Refund of integrated tax paid on export of goods or services under bond or Letter of Undertaking (Rule 96A)

  1. Any registered person availing the option to supply goods or services for export without payment of integrated tax shall furnish, prior to export, a bond or a Letter of Undertaking in FORM GST RFD-11 to the jurisdictional Commissioner, binding himself to pay the tax due along with the interest u/s. 50(1) within a period of –
    1. Fifteen days after the expiry of three months, or such further period as may be allowed by the Commissioner, from the date of issue of the invoice for export, if the goods are not exported out of India; or
    2. Fifteen days after the expiry of one year, or such further period as may be allowed by the Commissioner, from the date of issue of the invoice for export, if the payment of such services is not received by the exporter in convertible foreign exchange.
  2. The details of the export invoices contained in FORM GSTR-1 furnished on the common portal shall be electronically transmitted to the system designated by Customs and a confirmation that the goods covered by the said invoices have been exported out of India shall be electronically transmitted to the common portal from the said system. [Provided that where the date for furnishing the details of outward supplies in FORM GSTR-1 for a tax period has been extended in exercise of the powers conferred under section 37 of the Act, the supplier shall furnish the information relating to exports as specified in Table 6A of FORM GSTR-1 after the return in FORM GSTR-3B has been furnished and the same shall be transmitted electronically by the common portal to the system designated by the Customs: Provided further that the information in Table 6A furnished under the first proviso shall be auto-drafted in FORM GSTR-1 for the said tax period.]
  3. Where the goods are not exported within the time and the registered person fails to pay the amount mentioned in the said sub-rule, the export as allowed under bond or Letter of Undertaking shall be withdrawn forthwith and the said amount shall be recovered from the registered person in accordance with the provisions of section 79.
  4. The export as allowed under bond or Letter of Undertaking withdrawn in terms of sub-
    rule (3) shall be restored immediately when the registered person pays the amount due.
  5. The Board, by way of notification, may specify the conditions and safeguards under which a Letter of Undertaking may be furnished in place of a bond.
  6. The provisions of sub-rule (1) shall apply, mutatis mutandis, in respect of zero-rated supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit without payment of integrated tax.”

Consumer Welfare Fund (Rule 97)

  • All credits to the Consumer Welfare Fund shall be made
  • Any amount, having been credited to the Fund, ordered or directed as payable to any claimant by orders of the proper officer, appellate authority or Appellate Tribunal or court, shall be paid from the Fund.
  • Any utilisation of amount from the Consumer Welfare Fund under sub-section (1) of section 58 shall be made by debiting the Consumer Welfare Fund account and crediting the account to which the amount is transferred for utilisation.
  • The [Central/State] Government shall, by an order, constitute a Standing Committee with a Chairman, a Vice-Chairman, a Member Secretary and such other members as it may deem fit and the Committee shall make recommendations for proper utilisation of the money credited to the Consumer Welfare Fund for welfare of the consumers.
  • The Committee shall meet as and when necessary, but not less than once in three months.
  • Any agency or organisation engaged in consumer welfare activities for a period of three years registered under the Companies Act, 2013 (18 of 2013) or under any other law for the time being in force, including village or mandal or samiti level co-operatives of consumers especially Women, Scheduled Castes and Scheduled Tribes, or any industry as defined in the Industrial Disputes Act, 1947 (14 of 1947)recommended by the Bureau of Indian Standards to be engaged for a period of five years in viable and useful research activity which has made, or is likely to make, significant contribution in formulation of standard mark of the products of mass consumption, the Central Government or the State Government may make an application for a grant from the Consumer Welfare Fund: Provided that a consumer may make application for reimbursement of legal expenses incurred by him as a complainant in a consumer dispute, after its final adjudication.
  • All applications for grant from the Consumer Welfare Fund shall be made by the applicant Member Secretary, but the Committee shall not consider an application, unless it has been inquired into in material details and recommended for consideration accordingly, by the Member Secretary.
  • The Committee shall have powers –
    • To require any applicant to produce before it, or before a duly authorised Officer of the Government such books, accounts, documents, instruments, or commodities in custody and control of the applicant, as may be necessary for proper evaluation of the application;
    • To require any applicant to allow entry and inspection of any premises, from which activities claimed to be for the welfare of consumers are stated to be carried on, to a duly authorised officer of the Central Government or, as the case may be, State Government;
    • To get the accounts of the applicants audited, for ensuring proper utilisation of the grant;
    • To require any applicant, in case of any default, or suppression of material information on his part, to refund in lump sum, the sanctioned grant to the Committee, and to be subject to prosecution under the Act;
    • To recover any sum due from any applicant in accordance with the provisions of the Act;
    • To require any applicant, or class of applicants to submit a periodical report, indicating proper utilisation of the grant;
    • To reject an application placed before it on account of factual inconsistency, or inaccuracy in material particulars;
    • To recommend minimum financial assistance, by way of grant to an applicant, having regard to his financial status, and importance and utility of nature of activity under pursuit, after ensuring that the financial assistance provided shall not be miss utilised;
    • To identify beneficial and safe sectors, where investments out of Consumer Welfare Fund may be made and make recommendations, accordingly.
    • To relax the conditions required for the period of engagement in consumer welfare activities of an applicant;
    • To make guidelines for the management, administration and audit of the Consumer Welfare Fund.
  • The Central Consumer Protection Council and the Bureau of Indian Standards shall recommend to the GST Council, the broad guidelines for considering the projects or proposals for the purpose of incurring expenditure from the Consumer Welfare Fund.
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