How to Claim Refund under GST?
The refund application has to be electronically submitted in Form RFD 01 within 2 years from relevant date. The refund application form must be certified by a Chartered Accountant / Cost Accountant, if the amount of refund exceeds Rs 2 lakhs.
Documents Required
The below is the list of standard documents to be filed along with refund claim by applicants making a claim:
- For each claim, the primary document that has to be submitted is a statement of relevant invoices relating to the claim.
- If the refund is made on account of export of services, not including the statement of invoices, the relevant bank realisation certificates verifying receipt of payment in overseas currency should also be furnished.
- In case a claim is made by the supplier to the Special Economic Zones (SEZ) unit, the authorised officer will have to make an endorsement verifying the receipt of such commodities or services in the SEZ and submit the same along with the other documents.
- Moreover, the SEZ unit will also have to provide a declaration stating that ITC of the tax paid by the supplier has not been availed.
The Process to Claim the Refund
In order to process a refund claim, the following procedure must be adhered to:
- Login to the GST portal, click on Services > Refund > Application for Refund.
- Fill in the application form intended for claiming refund. For this, select “Refund of excess balance in electronic cash ledger” and click on “create”
- Here, you need to enter values in editable “refund claimed” table, then select “bank” in which you want your GST refund to get credited and click on button “save”
- At last, tick the checkbox and select “authorised signatory” from the drop-down menu. Depending upon your type of organisation select either of “‘SUBMIT WITH DSC’ or ‘SUBMIT WITH EVC’”
Quick Note: On filing RFD – 01 Refund, an ARN Receipt is generated in PDF format. Once the inspection of refund application is done satisfactorily, the amount of refund gets credited to the selected bank account.
Other Important Points
- On filling application, GST portal will send you notification via an email or a text SMS containing acknowledgement number for your electronically submitted application.
- The electronic cash and return ledger will be adjusted with the refund amount and the “carry-forward input tax credit” will be reduced automatically.
- It takes around 30-day period for authorities to scrutinise submitted refund application.
- The authorities will thoroughly scrutinise “Unjust enrichment”. Unjust enrichment refers to the benefit obtained from another, not intended as a gift and not legally justifiable, for which the beneficiary must make restitution or recompose – Indian Council for Enviro-Legal Action v. UOI (2011) 8 SCC 161.
- On disqualification of refund application, the refund gets transferred to a Consumer Welfare Fund (CWF).
- When refund is claimed for excess GST paid, a pre-audit process is conducted before the refund is sanctioned.
- On approval, refund is electronically credited to the bank account of applicant through ECS, NEFT or RTGS.
- Individuals are permitted to apply for refund at the end of each quarter.
- In case, the amount of refund application is below Rs 5,00,000 both declaration by taxpayer and documents as evidence need to be attached
- In case, the amount of refund is below Rs 1,000, no refund will be provided.
- In case, GST officer fails to pass an order within 60 days of application, taxpayer shall receive an interest at the rate of 6% p.a. for the period exceeding 60 days till refund is received.
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