Refund under GST

GST REFUND UNDER SECTION 54

As per Section 54(3) of the CGST Act, 2017, a registered person may claim refund of unutilised input tax credit at the end of any tax period. A tax period is the period for which return is required to be furnished. Thus, a taxpayer can claim refund of unutilised ITC on monthly basis.

TYPES OF GST REFUND:

• Excess payment of tax due to mistake or inadvertence
• Excess balance in Electronic Cash Ledger
• Export with payment of IGST or under Bond/LUT
• Supplies made to SEZ unit/developer on, payment of IGST or under Bond/LUT
• Inverted duty structure
• Deemed Exports
• Persons holding UIN
• Miscellaneous refunds

CONDITION FOR GST REFUND:

• The inward supplies of Goods or services are received from a registered person.
• Goods or services received a person against a tax invoice.
• The price covered under a single tax invoice exceeds Rs. 5000, excluding tax paid.
• Name and GSTIN or UIN of the applicant is mentioned on the tax invoice.
• Other prescribed condition specified in the notification are satisfied.

TIME LIMIT FOR REFUND UNDER GST:

GST refunds are processed normally within a period of 30 days from filing a GST refund forms. This period may alter in some cases depending on the amount of GST refunds to be processes.

GST REFUND PROCESS :

There could be various cases or events where one would be liable to get GST Refund. An exhaustive list of these cases is listed below :

• Excess amount payment.
• Export (also deemed export) of goods/services within the claim of rebate or Refund of collected input credit of duty/tax when goods/services are exported
• Finalization of provisional assessment
• Refund of Pre-deposit for filing appeal assimilating refund coming in pursuance of an appellate authority’s order
• Payment of duty/tax during the investigation but no/ less liability arises in the event of finalization of investigation/adjudication
• Refund of tax paid on purchases done by Embassies or UN bodies
• Credit collection due to output being tax exempt or nil-rated
• Credit collection due to inverted duty structure i.e. due to tax rate differential between output and inputs
• Year-end or volume based incentives provided by the supplier through credit notes
• Tax Refund for Foreign Tourists

 There is an Official Refund Process under the GST:

• An Application form to claim a refund can be filed through the GSTN portal
• An acknowledgement numberwill be given to the applicant by the means of SMS or email when the application is filed electronically
• The changes will be made to return and cash ledger and decrease the “carry-forward input tax credit” automatically
• Refund application and relevant documents presented must be scrutinized and adhered accordingly within a period of 30 days of filing the refund application
• The issue of “unjust enrichment” will be analyzed for reach refund application. In the case of non-qualification, the refund would be transferred to CWF (consumer welfare fund)
• If a refund amount stated crosses the predetermined amount of refund then the file will through the pre-audit process for sanctioning the refund
• Refund will be credited electronically to the account of an applicant via ECS, RTGS or NEFT
• The application for refund can be made after every quarter
• An amount less than 1000 is not eligible for the refund
  
  

DOCUMENTS REQUIRED FOR FILING REFUND CLAIM:

• Such documentary evidence as may be prescribed to establish that a refund is due to the applicant
• Such documentary or other evidence (including the documents under section 33) as the applicant may furnish to establish that there is no unjust enrichment.
• If the refund claim is less than Rs. 2 lakhs, a declaration by the applicant certifying that there is no unjust enrichment.
• If the claim of refund is Rs. 2 lakhs or more, a certificate from a CA/CMA will have to given.
• Other documents required as per Rule 89(2) will have to be given based on case of refund .