Introduction:
Refund module is currently not operational on the common portal of the GSTN causing delay in filing and processing of application for refund electronically. Manual filing of applications/documents/forms pertaining to refund claims has been prescribed to overcome this difficulty and, such applications shall also be processed manually by the jurisdictional proper officers till further order. A new rule 97A has been inserted prescribing such manual filing and processing of refund application and two new forms namely, FORM GST RFD 01A and FORM GST RFD 01B have been introduced in this regard. While FORM GST RFD 01A is the application form for claiming refund manually, FORM GST RFD 01B relates to disposal of such application for refund. Circular No. 17/17/2017 – GST dated 15/11/2017, 24/24/2017 – GST dated 21/12/2017 and 37/11/2018 – GST dated 15/03/2018 have been issued by the CBEC in this regard. Circulars 1/2018 and 2/2018 dated 10-1-2018 have also been issued by the Commissioner, State Tax, in similar lines.
Type of GST Refund:
Explanation: According to Explanation (1) appended to sub-section (14) of Section 54, “refund” includes 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, or refund of tax on the supply of goods regarded as deemed exports, or refund of unutilised input tax credit as provided under sub-section (3).
The aforesaid explanation, if elaborated, refers that refund may be claimed under following occasions:
A. refund of tax paid (IGST) on goods exported out of India; or
B. refund of tax paid (IGST) on services exported out of India; or
C. refund of tax paid (IGST) on goods or services supplied to a SEZ developer or a SEZ unit; or
D. refund of unutilised ITC when zero-rated supplies are made without payment of tax i.e., when such supplies are made under Letter of Undertaking or Bond; or
E. refund of tax on the supply of goods regarded as deemed exports; or
F. refund of unutilised ITC on account of inverted tax structure i.e., where credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempted supplies).
In addition to this, refund may also be claimed in respect of following situations:
G. 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;
H. refund of tax wrongfully collected and paid to the Government;
I. the tax and interest or any other amount paid incidence of which has not been passed on to any other person
J. refund of tax paid on inward supplies made by a specialised agency of UNO or any Multilateral Financial Institution and Organisation or Consulate or Embassy of foreign countries or other notified persons
Definitions
1. “zero rated supply” means any of the following supplies of goods or services or both, namely:
(a) Export of goods or services or both; or
(b) Supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit.
[Sub-section (1) of section 16 of the IGST Act]
2. “export of goods”with its grammatical variations and cognate expressions means taking goods out of India to a place outside India;
3. “export of services”means the supply of any service when,––
(i) the supplier of service is located in India;
(ii) the recipient of service is located outside India;
(iii) the place of supply of service is outside India;
(iv) the payment for such service has been received by the supplier of service in convertible foreign exchange; and the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in sec.8.
Supply of services to Nepal and Bhutan whether export of services?
A supply of service can be treated as export of service only when all the conditions given in the definition of “export of services” are fulfilled. Thus, realization of export proceeds in convertible foreign exchange becomes imperative for export of services. However, proceeds against supply of services having place of supply in Nepal or Bhutan are often realized in INR.
In view of above, following notifications have been issued:
- Supply of services associated with transit cargo to Nepal and Bhutan (landlocked countries) is exempted vide Notification No.31/2017 – Integrated Tax (Rate) dated 29-09-2017.
- Supply of services having place of supply in Nepal or Bhutan, against payment in Indian Rupees is exempted from tax vide Notification No.42/2017- Integrated Tax (Rate) dated 27.10.2017
1. Relevant Date For Filing Of Application For Refund:
Section 54(1) provides that, the application for refund is required to be filed before the expiry of two years from the relevant date which is given as under:
| Occasion |
Relevant Date |
Remarks |
| Goods exported by sea or by air |
The date on which the ship or the aircraft, carrying the goods, leaves India |
|
| Goods exported by land |
The date on which such goods pass the frontier |
|
| Goods are exported by post |
The date of dispatch of goods by the Post Office concerned |
|
| Deemed export |
The date on which the return relating to such deemed export is furnished. |
|
| Export of services |
If supply of services completed before receipt of payment, the date of receipt of payment.
If payment is received in advance prior to issuance of invoice, the date of issue of invoice.
|
|
| Un utilized ITC |
End of the tax period / end of the financial year in which such claim for refund arises. |
|
| Refund of tax paid on a supply which is not provided |
Date of payment of tax |
(point no.G) |
| Refund of tax and interest or any other amount if the applicant had not passed on the incidence of such tax and interest to any other person |
Date of payment of tax |
Refund ≤ Rupees two lakh: 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, is to be furnished.
Refund > Rupees two lakh: certificate in Annexure 2 of Form GST RFD 01 issued by a chartered accountant or cost accountant 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, is to be furnished.
|
| Tax paid on inward supply by UNO or any Multilateral Financial Institution and Organization or Consulate or Embassy of foreign countries. |
|
Before the expiry of six months from the last day of the quarter in which such supply was received. |
For the purpose of ensuring uniformity, following conditions and procedure are laid down for the manual filing and processing of the refund claims:
2. Refund Of IGST Paid On Goods Exported Out Of India:
2.1 No separate application is required to be filed in this situation as according to rule 96, the shipping bill filed by an exporter shall be treated as an application for refund in such cases.
2.2 However, such application shall be deemed to have been filed only after (i) filing of export manifest or export report covering the number and the date of shipping bills or bills of export; (ii) filing the details in Form GSTR 1for the tax period for which refund is claimed and a valid return in Form GSTR 3B for the last tax period preceding the tax period for which refund application is filed [Refer para 2 of Circular No. 24/24/2017 – GST issued by the CBEC]. In case of mismatches between Form GSTR 1, Form GSTR 3B and shipping bills or bills of export, the same can be amended in Table 9 of Form GSTR 1of the subsequent tax period(s). [Refer para 3 of Circular No. 37/11/2018 – GST issued by the CBEC]
2.3 The persons claiming refund of IGST paid on export of goods or services should not have received (i) supplies considered as deemed exports on which the supplier has claimed refund
[Refer third proviso to rule 89(1) read with Notification No.48/2017 – Central Tax issued by the CBEC & S. R. O. No. 737/2017.—issued by Govt. of GoK or, (ii) supplies for export on which supplier has charged tax at the rate of 0.1% (IGST) in case of inter-state supplies or 0.05%(CGST & SGST) in case of intra-state supplies in terms of Notification No. 40/2017 – Central Tax (Rate), 41/2017 Integrated Tax(Rate) issued by the CBEC & S. R. O. No. 740/2017 issued by Govt. of Kerala [In terms of insertion of sub-rule (9) to rule 96 vide Notification No. 75/2017 – Central Tax issued by the CBEC & S.R.O 140/2018 issued by the Govt. of Kerala.]
2.4 The system designated by the Customs shall process the claim for refund and the bank account of the applicant shall be electronically credited where the applicant is found entitled to get refund.
2.5 Refund may be withheld in terms of sub-section (10) or sub-section (11) of section 54 and where the proper officer of integrated tax at the Customs station receives a request to withhold the payment of refund due from the jurisdictional Commissioner of central tax, State tax or Union territory tax, he shall intimate the applicant and the jurisdictional Commissioner of CT/ST/UT, as the case may be.
2.6 Upon receipt of the intimation, the proper officer of CT/ST/UT shall pass an order for withholding the refund in PART-B of FORM GST RFD07. 2.7 In cases of further sanction to refund of the amount withheld, the proper officer shall pass an order in FORM GST RFD-06.
2.8 Both the orders in PART-B of FORM GST RFD-07 and FORM GST RFD06 shall be passed manually by the proper officer of CT/ST/UT till the refund module is operational on the common portal.
3. Refund Of IGST Paid On Zero-Rated Supply Of Goods To A SEZ Unit Or SEZ Developer Or Zero-Rated Supply Of Services:
3.1 Application is to be filed in FORM GST RFD 01A by the supplier.
3.2 In case of supply of goods to a SEZ unit or developer, 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.
3.3 In case of supply of services to a SEZ unit or developer, 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.
3.4 The supplier is required to file application in FORM GST RFD-01A on the common portal and a print out of the said form shall be submitted before the jurisdictional proper officer. 3.5 The persons claiming refund of IGST paid on zero rated supply of goods or services to a SEZ Unit or Developer or zero-rated supply of services is required to file the details in Form GSTR 1for the tax period for which refund is claimed and a valid return in Form GSTR 3B for the last tax period preceding the tax period for which refund application is filed [Refer para 2 of Circular No. 24/24/2017 – GST issued by the CBEC] In case of mismatches between Form GSTR 1, Form GSTR 3B and shipping bills or bills of export, the same can be amended in Table 9 of Form GSTR 1of the subsequent tax period(s). [Refer para 3 of Circular No. 37/11/2018 – GST issued by the CBEC]
3.6 Application is to be filed before the jurisdictional tax authority to which the taxpayer is assigned.
3.7 If jurisdiction of the registered person is not assigned, he may file application before any of the two authorities (Central or State) along with an undertaking that the claim for refund has been made to only one of the authorities https://taxheal.com.
4. Refund Of Unutilised ITC On Inputs And Input Services Used In Making Zero-Rated Supply:
4.1 This is applicable when zero-rated supply (export or supplies to SEZ developer/SEZ unit) is made without payment of integrated tax under Letter of Undertaking or Bond as prescribed in rule 96A.
4.2 Application shall be filed in FORM GST RFD-01A on the common portal.
4.3 The persons claiming refund of unutilised ITC on inputs and input services used in making zero-rated supply is required to file the details in Form GSTR 1for the tax period for which refund is claimed and a valid return in Form GSTR 3B for the last tax period preceding the tax period for which refund application is filed [Refer para 2 of Circular No. 24/24/2017 – GST issued by the CBEC and] In case of mismatches between Form GSTR 1, Form GSTR 3B and shipping bills or bills of export, the same can be amended in Table 9 of Form GSTR 1of the subsequent tax period(s). [Refer para 3 of Circular No. 37/11/2018 – GST issued by the CBEC }
4.4 The amount claimed as refund shall be debited in the corresponding electronic credit ledger of CT/ST/UT/IT/Cess to the extent of the claim in accordance with sub-rule (3) of rule 86.
4.5 An Acknowledgement Receipt Number (ARN) shall be generated on the common portal as a proof of debit which shall be mentioned in the FORM GST RFD-01A.
4.6 The print out of FORM GST RFD-01A along with a print out of the ARN shall be submitted before the jurisdictional tax authority to which the taxpayer is assigned.
4.7 If jurisdiction of the registered person is not assigned, he may file application before any of the two authorities (Central or State) along with an undertaking that the claim for refund has been made to only one of the authorities.
4.8 The registered persons applying for refund must give an undertaking to the effect that the amount of refund sanctioned would be paid back to the Government with interest in case it is found subsequently that the requirements of clause (c) of sub-section (2) of section 16 read with subsection (2) of sections 42 of the KSGST/CGST Act have not been complied with in respect of the amount refunded. This undertaking should be submitted manually along with the refund claim till the same is available in FORM GST RFD-01A on the common portal.
4.9 In the case of supplies received on which the supplier has availed the benefit of notification No. 48/2017-State Tax/Central Tax dated 18th October, 2017, refund of input tax credit, availed in respect of other inputs or input services used in making zero-rated supply of goods or services or both, shall be granted.
[Newly inserted rule 89(4A) w.e.f. 23/10/2017 vide notification no. SRO 140/2018 & 75/2017 – Central Tax dated 29/12/2017]
4.10 In the case of supplies received on which the supplier has availed the benefit of notification No. 40/2017-State/Central Tax (Rate) dated 23rd October, 2017 or notification No. 41/2017-Integrated Tax (Rate) dated 23rd October, 2017, or both, refund of input tax credit, availed in respect of inputs received under the said notifications for export of goods and the input tax credit availed in respect of other inputs or input services to the extent used in making such export of goods, shall be granted
[Newly inserted rule 89(4B) w.e.f. 23/10/2017 vide notification no. SRO.140/2018 & 75/2017 – Central Tax dated 29/12/2017].
4.11 A supplier availing of drawback only with respect to basic customs duty shall be eligible for refund of unutilized input tax credit of central tax / State tax / Union territory tax / integrated tax / compensation cess under the said provision. Refund of eligible credit on account of State tax shall be available even if the supplier of goods or services or both has availed of drawback in respect of central tax.
[Refer para 2.1 of Circular No. 37/11/2018 – GST issued by the CBEC]
4.12 During the processing of the refund claim, the value of the goods declared in the GST invoice and the value in the corresponding shipping bill / bill of export should be examined and the lower of the two values should be sanctioned as refund.
[Refer para 9.1 of Circular No. 37/11/2018 – GST issued by the CBEC )
4.13 The delay in furnishing of LUT may be condoned in cases where it has been established that exports in terms of the relevant provisions have been made and the facility for export under LUT may be allowed on ex post facto basis taking into account the facts and circumstances of each case.
[Refer para 4.1 of Circular No. 37/11/2018 – GST issued by the CBEC]
4.14 The Commissioner may consider granting of extension of time limit for export as provided in rule 96A on post facto basis keeping in view the facts and circumstances of each case as long as goods or services have actually been exported even after a period of three months or one year as the case may be, and in such case payment of integrated tax first and claiming refund at a subsequent date should not be insisted upon . https://taxheal.com.
[Refer para 5.1 of Circular No. 37/11/2018 – GST issued by the CBEC )
4.15 Transitional Credit pertains to taxes paid under the West Bengal Value Added Tax Act 2003 and therefore, cannot be claimed as unutilized input tax credit for the purpose of refund. It should also be ensured that no refund of the amount of VAT credit is granted in case the said amount has been transitioned under GST. Further, refunds of tax paid under the existing law shall be disposed of in accordance with the provisions of the existing law and cannot be claimed as refund of GST.
[Refer para 8 & 10 of Circular No. 37/11/2018 – GST issued by the CBEC ]
In cases where exports have not been made in the period in which the inputs or input services were received and input tax credit has been availed or in cases where exports have been made in a period but without availing of input tax credit in the said period, the exporter at his option, may file refund claim by clubbing successive calendar months / quarters. The calendar month(s) / quarter(s) for which refund claim has been filed, however, cannot spread across different financial years
[Refer para 11 of Circular No. 37/11/2018 – GST issued by the CBEC ]
4.16 If jurisdiction of the registered person is not assigned, he may file application before any of the two authorities (Central or State) along with an undertaking that the claim for refund has been made to only one of the authorities
4.17 The applicant on the basis of the type of refund claimed, shall furnish the documentary evidences, in the statements as appended to FORM GST RFD-01.
Supplies Under Letter Of Undertaking Or Bond
- Eligibility to export under LUT: The facility of export under LUT has been extended to all registered persons w.e.f. 04/10/2017 who intend to supply goods or services for export without payment of integrated tax except those who have been prosecuted for any offence under the CGST Act/SGST Act or the Integrated Goods and Services Tax Act, 2017 or any of the existing laws and the amount of tax evaded in such cases exceeds two hundred and fifty lakh rupees.
- Please take note that Notification No. 16/2017-Central Tax dated 7th July, 2017 which extended the facility of export under LUT to status holder as specified in paragraph 5 of the Foreign Trade Policy 2015-2020 and to persons receiving a minimum foreign inward remittance of 10% of the export turnover in the preceding financial year which was not less than Rs. one crore, has been withdrawn w.e.f. 04/10/2017 [Trade Circular 10/2017 dated 11/10/2017; 37/2017 – Central Tax dated 4thOctober, 2017].
- Validity of LUT: The LUT shall be valid for the whole financial year in which it is tendered.
- However, in case the goods are not exported within three months (or such further period as may be allowed by the Commissioner) from the date of issue of export invoice and the registered person fails to pay the amount within a period of fifteen days after the expiry of three months (or such further period as may be allowed by the Commissioner), the facility of export under LUT will be deemed to have been withdrawn.
- The facility of export under LUT shall be restored if the amount is paid subsequently.
- Exports, during the period from when the facility to export under LUT is withdrawn till the time the same is restored, shall be either on payment of the applicable integrated tax or under bond with bank guarantee.
- Form for bond/LUT: Till the time FORM GST RFD-11 is available on the common portal, the registered person (exporters) may download the FORM GST RFD-11 from the website of the Central Board of Excise and Customs (cbec.gov.in) and furnish the duly filled form to the jurisdictional Deputy/Assistant Commissioner having jurisdiction over their principal place of business.
- The LUT shall be furnished on the letter head of the registered person, in duplicate.
- It shall be executed by the working partner, the Managing Director or the Company Secretary or the proprietor or by a person duly authorised by such working partner or Board of Directors of such company or proprietor.
- The bond, wherever required, shall be furnished on non-judicial stamp paper of the value as applicable in the State in which the bond is being furnished.
- Documents for LUT: A self declaration by the exporter to the effect that he has not been prosecuted should suffice to issue LUT.
- Time for acceptance of LUT/Bond: LUT/bond should be accepted within a period of three working days of its receipt along with the self-declaration by the exporter.
- If the LUT / bond is not accepted within a period of three working days from the date of submission, it shall deemed to be accepted.
- Bank guarantee: Since the facility of export under LUT has been extended to all registered persons, bond will be required to be furnished by those persons who have been prosecuted for cases involving an amount exceeding Rupees two hundred and fifty lakhs. A bond, in all cases, shall be accompanied by a bank guarantee of 15% of the bond amount.
- NOTE: In terms of Circular No. 40/2018 dated 06/04/2018issued by the CBEC
- The registered person (exporters) shall fill and submit FORM GST RFD-11 on the common portal. An LUT shall be deemed to be accepted as soon as an acknowledgement for the same, bearing the Application Reference Number (ARN), is generated online.
- No document needs to be physically submitted to the jurisdictional office for acceptance of LUT.
- An LUT shall be deemed to have been accepted as soon as an acknowledgement for the same, bearing the Application Reference Number (ARN), is generated online. If it is discovered that an exporter whose LUT has been so accepted, was ineligible to furnish an LUT in place of bond as per Notification No. 37/2017-Central Tax, then the exporter’s LUT will be liable for rejection. In case of rejection, the LUT shall be deemed to have been rejected ab-initio.
5. Refund Of Tax On The Supply Of Goods Regarded As Deemed Export:
5.1 Application may be filed either by the recipient or by the supplier.
5.2 In case the supplier is applying for refund, he shall furnish Acknowledgment by the jurisdictional Tax officer of the Advance Authorisation holder or Export Promotion Capital Goods Authorisation holder, as the case may be, that the said deemed export supplies have been received by the said Advance Authorisation or Export Promotion Capital Goods Authorisation holder, or a copy of the tax invoice under which such supplies have been made by the supplier, duly signed by the recipient Export Oriented Unit that said deemed export supplies have been received by it[Notification No. – 49/2017-Central Tax dated 18.10.2017; Notification No 738/2017 ]
5.3 Further, the supplier of deemed export supplies is also required to furnish an undertaking by the recipient of deemed export supplies that he shall not claim the refund in respect of such supplies and that no input tax credit on such supplies has been availed of by him. The undertaking should be submitted manually along with the refund claim.
5.4 Similarly, in case the refund is filed by the recipient of deemed export supplies, an undertaking by the supplier of deemed export supplies that he shall not claim the refund in respect of such supplies is also required to be furnished manually.
5.5 The application shall be accompanied by a statement containing the number of invoices along with such other evidences as may be notified in this behalf.
5.6 The registered persons applying for refund must give an undertaking to the effect that the amount of refund sanctioned would be paid back to the Government with interest in case it is found subsequently that the requirements of clause (c) of sub-section (2) of section 16 read with subsection (2) of sections 42 of the KSGST/CGST Act have not been complied with in respect of the amount refunded. This undertaking should be submitted manually along with the refund claim till the same is available in FORM GST RFD-01A on the common portal.
5.7 Statement in 5B as appended to FORM GST RFD-01A is required to be furnished for claiming refund on supplies declared as deemed exports.
Following supplies of goods have been regarded as deemed export:
- Supply of goods by a registered person against Advance Authorisation;
- Supply of capital goods by a registered person against Export Promotion Capital Goods Authorisation;
- Supply of goods by a registered person to Export Oriented Unit;
- Supply of gold by a bank or Public Sector Undertaking specified in the notification No. 50/2017-Customs, dated the 30th June, 2017 (as amended) against Advance Authorisation.
[Notification No.-48/2017-Central Tax dated 18.10.2017; Notification SRO 737/2017 ]
6. Refund Of Unutilised Input Tax Credit On Account Of Inverted Tax Structure:
6.1 Application shall be filed in cases where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies).
6.2 The registered persons applying for refund must give an undertaking to the effect that the amount of refund sanctioned would be paid back to the Government with interest in case it is found subsequently that the requirements of clause (c) of sub-section (2) of section 16 read with subsection (2) of sections 42 of the KSGST/CGST Act have not been complied with in respect of the amount refunded. This undertaking should be submitted manually along with the refund claim till the same is available in FORM GST RFD-01A on the common portal.
6.3 The application for refund in such cases shall accompany statements as appended to GST RFD 01A.
Credit accumulation on account of rate of tax on inputs being higher than rate of tax on output supplies shall be eligible for refund excepting-
(i) nil rated /fully exempt output supplies
(ii) supplies of goods as notified in notification no. : 5/2017 central tax (Rate) 29/2017 -Central Tax (Rate), 44/2017-State Tax (Rate) corresponding state notifications SRO ‘s 364,722, and 744 of 2017.
(iii) supplies of services as notified in notification no. 15/2017-central tax Tax (Rate) :SRO 374/2017 [Construction Services: Point 5(b) Schedule II]
7. The Application For Refund Shall Accompany The Following Documentary Evidences, As Applicable:
7.1 A statement containing the number and date of shipping bills or bills of export and the number and the date of the relevant export invoices, in a case where the refund is on account of export of goods;[Rule 89(2)(b)]
7.2 A statement containing the number and date of invoices and the relevant Bank Realisation Certificates or Foreign Inward Remittance Certificates, as the case may be, in a case where the refund is on account of the export of services;[Rule 89(2)( c)]
7.3 A statement containing the number and date of invoices as provided in rule 46 along with the evidence regarding the endorsement in the case of the supply of goods made to a SEZ unit or a SEZ developer; [Rule 89(2)(d)]
7.4 A statement containing the number and date of invoices, the evidence regarding the endorsement and the details of payment, along with the 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 SEZ unit or a SEZ developer; [Rule 89(2) (e)]
7.5 A declaration to the effect that the SEZ unit or the SEZ developer has not availed 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 SEZ unit or a SEZ developer;[Rule 89(2)(f)]
7.6 The registered persons applying for refund must give an undertaking to the effect that the amount of refund sanctioned would be paid back to the Government with interest in case it is found subsequently that the requirements of clause (c) of sub-section (2) of section 16 read with subsection (2) of section 42 of the KSGST/CGST Act have not been complied with in respect of the amount refunded. This undertaking should be submitted manually along with the refund claim till the same is available in FORM GST RFD-01A on the common portal.
7.7 The applicant on the basis of the type of refund claimed shall furnish the documentary evidences, in the following statements (as applicable) as appended to FORM GST RFD-01:
Statement 2 as appended to FORM – GST RFD 01
Refund Type: Exports of services with payment of tax
| Sl. No. |
Invoice Details |
Integrated tax |
CESS |
BRC/ FIRC |
Integrated tax and cess involved in debit note, if any
|
Integrated tax and cess involved in credit note, if |
Net Integrated tax and
cess (6+7+10 – 11) |
|
|
|
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| 1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
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Statement 4 as appended to FORM GST RFD-01
Refund Type: On account of supplies made to SEZ unit or SEZ Developer (on payment of tax)
| GSTIN of recipient |
Invoice details |
Shipping bill /Bill of export/ Endorsed invoice by
SEZ |
Integrated tax |
Cess |
Integrated tax and cess involved in debit note, if any |
Integrated tax and cess involved in credit note, if any |
Net Integrated tax and cess
(8+9+10– 11)
|
| No. |
Date |
Value |
No. |
Date |
Taxable value |
Amt. |
| 1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
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Statement 3 as appended to FORM GST RFD-01
Refund Type: Export without payment of tax (accumulated ITC)
| Sl. No. |
Invoice details |
Goods / Services (G / S) |
Shipping bill/ Bill of
export
|
EGM Details |
BRC/ FIRC |
|
No. |
Date |
Value |
Port code |
No. |
Date |
Ref.
No.
|
Date |
No. |
Date |
| 1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
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Statement- 3A
[rule 89(4)]
Refund Type: Export without payment of tax (accumulated ITC) – calculation of refund amount
| Turnover of zero rated supply of goods and services |
Net input tax credit |
Adjusted total turnover |
Refund amount (1×2÷3) |
| 1 |
2 |
3 |
4 |
|
|
|
|
Statement- 5 as appended to FORM GST RFD-01
Refund Type: On account of supplies made to SEZ unit or SEZ Developer (without payment of tax)
| Sl. No. |
Invoice details |
Goods / Services (G/S) |
|
| No. |
Date |
Value |
No. |
Date |
| 1 |
2 |
3 |
4 |
5 |
6 |
7 |
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Statement- 5A [Rule 89(4)]
Refund Type: On account of supplies made to SEZ unit / SEZ developer without payment of tax (accumulated ITC) – calculation of refund amount
| Turnover of zero – rated supply of goods and services |
Net input tax
credit
|
Adjusted total
turnover
|
Refund
(1×2÷3)
|
amount |
| 1 |
2 |
3 |
|
4 |
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Statement 5B [rule 89(2)(g)]
Refund type: On account of deemed exports
Sl.
No. |
Details of invoices of outward supplies in case
refund is claimed by supplier/ Details of invoices of inward supplies in case refund is claimed by recipient |
Tax paid |
| No. |
Date |
Taxable value |
Integrated
Tax |
Central
Tax |
State Tax /
Union
Territory Tax |
Cess |
| 1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
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Statement -1
[rule 89(5)]
Refund Type: ITC accumulated due to inverted tax structure [clause (ii) of first proviso to section 54(3)]
| Turnover of inverted rated supply of goods |
Tax payable on such inverted rated supply of
goods |
Adjusted total turnover |
Net input tax credit |
Maximum refund amount to be claimed
[(1×4÷3)-2]
|
| 1 |
2 |
3 |
4 |
5 |
|
|
|
|
|
Statement 1A
[rule 89(2)(h)]
Refund type: ITC accumulated due to inverted tax structure [clause (ii) of first proviso to section 54(3)]
| Sl. No. |
Details of invoices of
inward supplies
received
|
Tax paid on inward supplies
|
Details of invoice of
outward supplies
issued
|
Tax paid on outward supplies
|
No.
|
Date
|
Taxable value
|
Integrated tax
|
Central tax
|
State tax / Union Territory tax
|
No.
|
Date
|
Taxable value
|
Integrated tax
|
Central tax
|
State tax / Union Territory tax
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
9
|
10
|
11
|
12
|
13
|
LIST OF DOCUMENTS FOR PROCESSING OF FOLLOWING REFUNDS
[Refer para 14 of Circular No. 37/11/2018 – GST issued by the CBEC]
| Type of refund |
Documents |
| Export of Services with payment of tax (Refund of IGST paid on export of services) |
- Copy of FORM RFD-01A filed on common portal
- Copy of Statement 2 of FORM RFD-01A
- Invoices w.r.t. input, input services and capital goods
- BRC/FIRC for export of services
- Undertaking / Declaration in FORM RFD-01A
|
| Export (goods or services) without payment of tax (Refund of accumulated ITC of IGST / CGST / SGST / UTGST /Cess) |
- Copy of FORM RFD-01A filed on common portal
- Copy of Statement 3A of FORM RFD-01A generated on common portal
- Copy of Statement 3 of FORM RFD-01A
- Invoices w.r.t. input and input services
- BRC/FIRC for export of services
- Undertaking / Declaration in FORM RFD-01A
|
8. Form GST Rfd-01A: How To Generate Electronically :
8.1 The refund application shall be filed in FORM GST RFD-01A on the common portal.
8.2 The application shall be filed on a monthly basis. However, registered persons who are opting to file FORM GSTR-1 quarterly in terms of notification number 57/2017- Central Tax dated 15.11.2017 & 2032 F.T. dated 15/11/2017 (State Tax) (i.e., tax payers with aggregate turnover up to Rs.1.5 crore in the preceding financial year or the current financial year), shall apply for refund on a quarterly basis. The refund claim for a tax period may be filed only after filing the details in FORM GSTR-1 for the said tax period [Circular No.24/24/2017-GST, dated 21/12/2017; Trade Circular No. 14/2017 dated 21/12/2017].
8.3 The applicant is required to file valid return in FORM GSTR-3B for the last tax period before the one in which the refund application is being filed [Circular No.24/24/2017-GST, dated 21/12/2017; Trade Circular No. 14/2017 dated 21/12/2017].
8.4 In order to file the application in FORM GST RFD-01A, Table (3A) is made available on the common portal i.e. www.gst.gov.in. The applicant who is covered under aforesaid categories and who desires to seek refund shall access the common portal with the appropriate Log-in Id and password and fill up TABLE 3A.
8.5 The process flow diagram follows as:
Login Id > password > Services > Refund > Application for Refund > Select month from drop down > Create application > fill the application > take print > submit printout to the jurisdictional proper officer.
8.6 Once an applicant reaches the Application for Refund page using his credentials he will have the option to choose the appropriate refund type as under:
- Refund of Excess Balance in Electronic Cash Ledger
- Refund of ITC on Export of Goods & Services without Payment of Integrated Tax
- On account of supplies made to SEZ unit/ SEZ developer (without payment of tax)
- Refund on account of ITC accumulated due to Inverted Tax Structure
- Recipient of Deemed Exports
- Refund on account of Supplies to SEZ unit/ SEZ Developer (with payment of tax)
- Export of services with payment of tax
Upon choosing of the refund type he will have to follow the steps as noted in para 5 above.
8.7 As explained above, the applicant shall fill the appropriate information in table (3A) under the heading> “Computation of Refund to be claimed (Statement 3A)” after creation of the application if he is claiming refund of unutilized input tax credit on account of export of goods and services.
8.8 For better understanding, TABLE 3A is given below:
Table 3A
|
Turnover of zero-rated supply of goods and services (in Rs.)
(1)
|
Adjusted total turnover
(3)
|
Net input tax credit
(2)
|
Maximum refund amount
((1*2)/3)
(4)
|
| Integrated Tax |
|
|
|
|
| Central Tax |
|
| State Tax |
|
| Cess |
|
| Total |
|
|
|
|
8.9 As it appears from the above table the details of Turnover of Zero-rated supply of goods and services is to be filled in column (1) above. The said turn-over of Zero-rated supply may be taken from the column 3.1 (b) of the FORM-GSTR-3B.
The figures of Net input tax credit (ITC) in column (2) of table above may be taken from the column 4(C) of the FORM-GSTR-3B, respectively.
8.10 The applicant can upload the details of Export of Goods and/or services to create Statement 3 in the same “Application for Refund” page or may download the offline utility for the same.
8.11 Once the information as stated above is filled then the figures in column (4) above is required to be determined by using the formula given in rule 89(4) as under:
Refund Amount = (Turnover of Zero rated supply of Goods + Turnover of Zero rated supply of services) x Net ITC / Adjusted Total Turnover.
Where,-
(A) “Refund amount” means the maximum refund that is admissible;
(B) “Net ITC” means input tax credit availed on inputs and input services during the relevant period other than the input tax credit availed for which refund is claimed under sub-rules (4A) or (4B) or both;
(C) “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 , other than the turnover of supplies in respect of which refund is claimed under sub-rules (4A) or (4B) or both;
(D) “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 is the aggregate of the payments received during the relevant period for zero-rated supply of services and zero-rated supply of services where supply has been completed for which payment had been received in advance in any period prior to the relevant period reduced by advances received for zero-rated supply of services for which the supply of services has not been completed during the relevant period;
(E) “Adjusted Total turnover” means the turnover in a State or a Union territory, as defined under clause (112) of section 2, excluding –
(a) the value of exempt supplies other than zero-rated supplies and
(b) the turnover of supplies in respect of which refund is claimed under sub rules (4A) or (4B) or both, if any, during the relevant period;
(F) “Relevant period” means the period for which the claim has been filed.
Rule 89(4) prior to 23/10/2017:
Refund Amount = (Turn-over of Zero – rated supply of Goods + Turn-over of Zero-rated supply of services) X Net ITC/Adjusted Total Turn-over.
Where,-
(A) “Refund amount” means the maximum refund that is admissible;
(B) “Net ITC” means input tax credit availed on inputs and input services during the relevant period;
(C) “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;
(D) “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 is the aggregate of the payments received during the relevant period for zero-rated supply of services and zero-rated supply of services where supply has been completed for which payment had been received in advance in any period prior to the relevant period reduced by advances received for zero-rated supply of services for which the supply of services has not been completed during the relevant period;
(E) “Adjusted Total turnover” means the turnover in a State or a Union territory, as defined under clause (112) of section 2, excluding the value of exempt supplies other than zero-rated supplies, during the relevant period;
8.12 After filling the appropriate figures in the table (3A), the amount of refund will get auto populated in the column (4) of the said TABLE. Further, there is another TABLE below where the amount of eligible refund will be calculated.
8.13 For better understanding the TABLE in which the eligible refund will be calculated is given below:
|
Balance in electronic credit ledger at the end of tax period for which refund is claimed (balance remaining after return for this period is filed) (Rs.) |
Balance in electronic credit ledger at the time of filing of refund application (Rs.) |
Refund to be claimed
(Rs.) |
| Integrated Tax |
|
|
|
| Central Tax |
|
|
|
| State Tax |
|
|
|
| Cess |
|
|
|
| Total |
|
|
|
8.14. The figures in column (2) & (3) of the aforesaid TABLE will get populated automatically. The final amount eligible for refund is required to be given in the column (4) above.
8.15. Statement 1 which is required to be filled up in case of refund due to inverted tax structure and Statement 5A which is required to be filled up in case of refund due to supplies made to SEZ unit/Developer in FORM GST RFD-01A are similar in nature. The subsequent table for calculation of eligible amount of refund in these cases are also similar in nature.
8.16. In case of refund due to inverted tax structure in accordance with section 54(3)(ii) of the SGST/CGST Act 2017 the figures in column (4) of Statement 1 determining the “maximum refund amount” is required to required to be determined by using the formula given in rule 89(5) as under:
Maximum Refund Amount = {(Turnover of inverted rated supply of goods and services) x Net ITC ÷ Adjusted Total Turnover} – tax payable on such inverted rated supply of goods and services.
Where,
(A) “Net ITC” means input tax credit availed on inputs during the relevant period other than the input tax credit availed for which refund is claimed under sub-rules (4A) or (4B) or both; and
(B) “Adjusted Total turnover” means the turnover in a State or a Union territory, as defined under clause (112) of section 2, excluding –
(a) the value of exempt supplies other than zero-rated supplies and
(b) the turnover of supplies in respect of which refund is claimed under sub rules (4A) or (4B) or both, if any, during the relevant period;
(C) “Relevant period” means the period for which the claim has been filed.
Rule 89(5) is amended w.e.f. 18/04/2018 by virtue of West Bengal Goods Services Tax(Fourth Amendment) Rules, 2018 and Central Goods and Services Tax(Fourth Amendment) Rules, 2018[Notification No. 518 F.T. dated 18/04/2018-State Tax & 21/2018–Central Tax dated 29/12/2018]:
Rule 89(5) prior to 18/04/2018:
“In the case of refund on account of inverted duty structure, refund of input tax credit shall be granted as per the following formula –
Maximum Refund Amount = {(Turnover of inverted rated supply of goods) x Net ITC ÷ Adjusted Total Turnover} – tax payable on such inverted rated supply of goods
Explanation.- For the purposes of this sub rule, the expressions “Net ITC” and “Adjusted Total turnover” shall have the same meanings as assigned to them in sub-rule (4).”
8.17. After duly filing the appropriate information the applicant is also required to select from drop-down the Bank Account Number given at the time of filling registration details.
8.18. In case, an applicant desires that, the refund amount be credited in another preferred bank account which is not appearing in the drop down list then the applicant is required to add that bank account by filing amendment to registration record (non-core amendment) form. For this the applicant may go to >Registration>Non-core amendment> and add details including Bank Name, Branch Name, IFSc Code. The facility given for choosing the Bank IFSC may be used so that no error is made while filling information about bank details. Once the Bank details are updated then the refund amount determined as per the provisions of the law will be disbursed and credited to the said preferred Bank account.
8.19. Once the aforesaid steps are followed and application is saved then the message as “Saved successfully” will appear at the top left hand side of the Table (3A). Then the applicant should check the Box for declaration to the effect that the information submitted is true and correct. After doing so the “PROCEED” button will get activated. Pressing the said button will take to the next window, where, after checking the Box for declaration the applicant is required to submit the said application with the Digital Signature Certificate (DSC).
8.20. After successful submission of Table-3A of refund, ARN receipt will be generated. Printout of the same is required to be submitted to the jurisdictional proper officer
9. Processing Of Application For Refund And Disposal Thereof:
9.1 A refund register is required to be maintained in the office of jurisdictional proper officer.
9.2 Once a refund application in FORM GST RFD 01A is received, an entry shall be made in the said register.
9.3 The proper officer can check FORM GSTR-1, FORM GSTR-3B, FORM GSTT1 (Transitional Credit Form) through the process flow diagram follows as: Login Id > password > Services > Taxpayer Account > Record Search > Enter GSTIN > Document type: select ARN from drop down > Related to: select Return from drop down > Search.
9.4 Balance of electronic credit ledger, electronic cash ledger and electronic liability register as on the date of search can be viewed through the process flow diagram follows as: Login Id > password > Services > Taxpayer Account > Get Taxpayer Details > Enter GSTIN.
9.5 The proper officer shall scrutinize the application for its completeness and if the application is found to be complete, an acknowledgement in FORM GST RFD 02 is to be issued to the applicant within fifteen days from the date of filing of the said application.
SCRUTINY OF APPLICATION FOR REFUND
For the purpose of scrutiny of the application, a check list comprising following particulars may be prepared:
| 1 |
Whether the applicant has furnished the return for the relevant period? |
Yes |
No |
| 2 |
Whether IGST paid by the applicant is found to be matched with the return filed? |
Yes |
No |
| 3 |
Whether the application is duly signed, mentioning the name and designation/status of the signatory, in all the required places? |
Yes |
No |
| 4 |
Whether the application is duly filled up (column number 1 to 4 are system populated) in respect of column 5 to 7? |
Yes |
No |
| 5 |
Whether the applicant has furnished information in the relevant Table annexed to the FORM GST RFD 01? (also see the check list ) |
Yes |
No |
| 6 |
Whether the application is filed along with all supporting documents? [See 7.1 – 7.7, 4.1-4.15, 5.1-5.7, 6.1-6.3] |
Yes |
No |
| 7 |
Whether the shipping bill details are found to be in order upon checking through ICEGATE SITE (www.icegate.gov.in)in detailed scrutiny? |
Yes |
No |
9.6 Upon scrutiny of the application form, if any deficiencies are noticed, the proper officer shall communicate the deficiencies to the applicant in FORM GST RFD-03 within fifteen days from the date of filing the application.
9.7 Deficiency Memo should be complete in all respects and only one Deficiency Memo shall be given.
9.8 The applicant is then required to file a fresh refund application after rectification of such deficiencies using the ARN and debit entry number generated originally. This fresh application would be accompanied with the original ARN, debit entry number generated originally and a hard copy of the refund application filed online earlier.
[Refer para 6 of Circular No. 37/11/2018 – GST issued by the CBEC ]
9.9 Once an application has been submitted afresh, pursuant to a deficiency memo, the proper officer will not serve another deficiency memo with respect to the application for the same period, unless the deficiencies pointed out in the original memo remain unrectified, either wholly or partly or any other substantive deficiency is noticed subsequently
[Refer para 6 of Circular No. 37/11/2018 – GST issued by the CBEC ]
9.10 If the application is not filed afresh within thirty days of the communication of Deficiency Memo, the proper officer shall pass an order in FORM GST PMT-03 and re-credit the amount claimed as refund through FORM GST RFD-01B on the common portal.
9.11 Where the claim for refund on account of zero-rated supply is found to be in order prima-facie, 90% of the total amount of claim shall be refunded provisionally within a period not exceeding seven days from the date of acknowledgement of the application. The order of such refund on provisional basis shall be made in FORM GST RFD-04.
9.12 A payment advice in FORM RFD GST-05 shall be issued thereafter for credit of the refund amount to the bank account of the applicant which is mentioned in his registration particulars as well as in the application for refund.
9.13 If the proper officer is satisfied that a refund is due to the applicant, he shall make an order in FORM GST RFD-06 sanctioning the refund amount which the applicant is found to be entitled within 60 days from the date of receipt of complete application. While making the order in FORM GST RFD-06, the proper officer shall mention following adjustment, if any:
(i) the amount of refund sanctioned on provisional basis;
(ii) amount of refund found inadmissible;
(iii) amount adjusted against outstanding demand;
9.14 The proper may reject the application for refund and pass an order in FORM GST RFD-06. But the application shall be rejected after giving an opportunity of being heard to the applicant. A notice for rejection of application for refund shall be issued in FORM GST RFD-08 and the applicant is required to furnish a reply in FORM GST RFD-09 within a period of fifteen days from the date of receipt of the notice.
9.15 The amount of credit rejected has to be re-credited to the credit ledger by way of communication of such through FORM GST RFD 01B in the common portal and pass a rejection order in FORM GST PMT-03.
9.16 If the refund is completely adjusted against any outstanding demand, an order giving details of the adjustment shall be issued in Part A of FORM GST RFD-07.
9.17 Where the refund is withheld by the proper officer, he shall pass an order in Part B of FORM GST RFD-07 informing the applicant the reason for withholding of the refund. 9.18 A supplier availing of drawback only with respect to basic customs duty shall be eligible for refund of unutilized input tax credit of central tax / State tax / Union territory tax / integrated tax / compensation cess under the said provision. Refund of eligible credit on account of State tax shall be available even if the supplier of goods or services or both has availed of drawback in respect of central tax. [Refer para 2.1 of Circular No. 37/11/2018 – GST issued by the CBEC ]
9.19 Summarising the aforesaid proceedings it is reiterated that, all the communications in relation to disposal of application for refund shall be done manually in the prescribed forms as follows, within the prescribed time limit, till the module is operational on the common portal and the same shall be recorded appropriately in the refund register:
| Sl. No. |
Form |
Details |
Time limit |
| 1 |
FORM GST RFD 02 |
Acknowledgement of application |
Within 15 days of filing of application |
| 2 |
FORM GST RFD 03 |
Deficiency Memo |
Within 15 days of filing of application |
| 3 |
FORM GST RFD 04 |
Provisional refund order |
Within a period not exceeding 07 days from the date of acknowledgement |
| 4 |
FORM GST RFD 05 |
Payment advice |
|
| 5 |
FORM GST RFD 06 |
Refund sanction/rejection order |
Within 60 days from the date of receipt of complete application |
| 6 |
FORM GST RFD 07- Part A |
Order for complete adjustment of refund |
|
| 7 |
FORM GST RFD 07 – Part B |
Order for withholding refund |
|
| 8 |
FORM GST RFD 08 |
Notice for rejection of application for refund |
|
| 9 |
FORM GST RFD 09 |
Reply to FORM GST RFD 08 |
Within 15 days of receipt of FORM GST RFD 08 |
| 10 |
FORM GST RFD 01B |
Refund Processing Details on the common portal |
|
10. Check List:
(Put √ marks in the respective box to ascertain whether deficiency memo is required to be issued)
Refund Of IGST Paid On Zero-Rated Supply (Other Than Export Of Goods)
[It covers the following types of refund claims: (a) Export of services on payment of tax, (b) Supplies of goods or services or both to SEZ on payment of tax]
| 1 |
Print out of FORM GST RFD 01A |
Yes |
No |
| 2 |
Print out of Acknowledgement Receipt Number (ARN) |
Yes |
No |
| 3 |
Endorsement by the specified officer of the SEZ that goods have been admitted in full in the SEZ for authorised operation (applicable in respect of supply of goods to SEZ) |
Yes |
No |
| 4 |
Endorsement by the specified officer of the SEZ that services have been received in the SEZ for authorised operation (applicable in respect of supply of services to SEZ) |
Yes |
No |
| 5 |
Statement 2 of RFD-01[Applicable for export of services with payment of tax] |
Yes |
No |
| 6 |
Declaration [rule 89(2)(f)] appended to FORM GST RFD 01[That ITC has not been availed by the SEZ unit/developer] |
Yes |
No |
| 7 |
Statement-4 [Applicable for supplies made to SEZ Unit/Developer] |
Yes |
No |
| 8 |
Invoices w.r.t. input, input services and capital goods along with a statement thereof |
Yes |
No |
| 9 |
Undertaking as referred in para 7.6 above |
Yes |
No |
[Debit of electronic credit ledger is not required]
Refund Of Unutilised Itc On Inputs And Input Services Used In Making Zero-Rated Supply (Supplies Made Under Letter Of Undertaking Or Bond)
| 1 |
Print out of FORM GST RFD 01A |
Yes |
No |
| 2 |
Print out of Acknowledgement Receipt Number (ARN) |
Yes |
No |
| 3 |
Statement 3 [Applicable for export without payment of tax(accumulated ITC)] |
Yes |
No |
| 4 |
Statement 3A [Calculation of refund of accumulated ITC on account of export without payment of tax…refer to rule 89(4)] |
Yes |
No |
| 5 |
Statement 5 [Applicable for supplies made to SEZ unit or SEZ Developer without payment of tax] |
Yes |
No |
| 6 |
Statement 5A [Calculation of refund of accumulated ITC on account of supplies to SEZ unit/developer without payment of tax…refer to rule 89(4)] |
Yes |
No |
| 7 |
Endorsement by the specified officer of the SEZ that goods have been admitted in full in the SEZ for authorised operation (applicable in respect of supply of goods) |
Yes |
No |
| 8 |
Endorsement by the specified officer of the SEZ that services have been received in the SEZ for authorised operation (applicable in respect of supply of services) |
Yes |
No |
| 9 |
Declaration [second proviso to section 54(3)] appended to FORM GST RFD 01[That goods exported are not subject to any export duty/drawback have not been availed/refund of IGST paid has not been claimed ] |
Yes |
No |
| 10 |
Invoices w.r.t. input and input services along with a statement thereof |
Yes |
No |
| 11 |
Undertaking as referred in para 5.7 above |
Yes |
No |
[Debit of electronic credit ledger is required]
Refund Of Tax On The Supply Of Goods Regarded As Deemed Export
| 1 |
Print out of FORM GST RFD 01A |
Yes |
No |
| 2 |
Acknowledgment by the jurisdictional Tax officer of the Advance Authorisation holder or Export Promotion Capital Goods Authorisation holder, as the case may be, that the said deemed export supplies have been received by the said Advance Authorisation or Export Promotion Capital Goods Authorisation holder, or a copy of the tax invoice under which such supplies have been made by the supplier, duly signed by the recipient Export Oriented Unit that said deemed export supplies have been received by it (where the applicant is the supplier of deemed export supplies). |
Yes |
No |
| 3 |
Undertaking by the recipient that (i) he shall not claim the refund in respect of such supply, and (ii) input tax credit has not been availed of by him on such supplies (where the applicant is the supplier of deemed export supplies) . |
Yes |
No |
| 4 |
Undertaking by the supplier that he shall not claim the refund in respect of such supply (where the applicant is recipient of deemed export supplies) |
Yes |
No |
| 5 |
Statement 5B [refer to rule 89(2)(g)] |
Yes |
No |
| 6 |
Undertaking as referred in para 6.7 above |
Yes |
No |
Refund Of Unutilised Input Tax Credit On Account Of Inverted Tax Structure
| 1 |
Print out of FORM GST RFD 01A |
Yes |
No |
| 2 |
Print out of Acknowledgement Receipt Number (ARN) |
Yes |
No |
| 3 |
Declaration [section 54(3)(ii)] appended to FORM GST RFD 01[That ITC has not been availed on nil rated/fully exempt supply] |
Yes |
No |
| 4 |
Statement-1 [Calculation of refund of accumulated ITC on account of inverted tax structure…refer to rule 89(5)] |
Yes |
No |
| 5 |
Statement 1A [Details if inward and outward supply…refer to rule 89(2)(h)] |
Yes |
No |
| 6 |
Undertaking as referred in para 7.2 above |
Yes |
No |
| [Debit of electronic credit ledger is required] |
|
Excess balance in Cash Ledger |
|
|
| 1 |
Print out of FORM GST RFD-01A |
Yes |
No |
| 2 |
Print out of Acknowledgement Receipt Number (ARN) |
Yes |
No |
|
[Debit of electronic cash ledger is required] |
|
|
11. Refund Registers To Be Maintained, Disbursal Procedures And Communication Between Central And State Tax Authorities,
11..1 The procedure prescribed in circular 2/2018 and 5/2018 shall be followed.
11.2 In Addition , the following registers shall be maintained by the refund sanctioning authority.
Table 1
Sl. No.
|
Applicant’s name
|
GSTIN
|
Date of
receipt of
application
|
Period to which the
claim pertains
|
Nature of refund – Refund of integrated tax paid/Refund of unutilized ITC
|
Amount
of refund
claimed
|
Date of issue of
acknowledg
ment in FORM GST
RFD-02
|
Date of
receipt of
complete
application
(as mentioned
in FORM
GST RFD02)
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
9
|
|
|
|
|
|
|
|
|
|
Table 2
| Date of issue of Deficiency Memo in FORM GST RFD-03 |
Date of receipt of reply from the applicant |
Date of issue of provisional refund order in FORM
GSTRFD-04 |
Amount of refund claimed |
Amount of provisional refund sanctioned |
Date of issue of Payment Advice in FORM GST RFD-05 |
| CT |
ST/UTT |
IT |
CESS |
| 1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
|
|
|
|
|
|
|
|
|
Table 3
Date of issue of notice, if any for rejection of refund in FORM GST REF-08
|
Date of receipt of reply, if any to SCN in FORM GST RFD- 09
|
Date of issue of Refund sanction / rejection order in FORM GST RFD-06
|
Total amount of refund sanctioned
|
Date of issue of Payment Advice in FORM GST RFD-05
|
Amount of refund
rejected
|
Date of issue of order for adjustment of sanctioned refund / withholding refund in FORM GST RFD-07
|
CT
|
ST/UTT
|
IT
|
CESS
|
CT
|
ST/UTT
|
IT CESS
|
CESS
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
9
|
10
|
11
|
12
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11.3 In case of refund claim for the balance amount in the electronic cash ledger, upon filing of FORM GST RFD-01A as per the procedure laid down in Para 2.4 of Trade Circular No. 12/2017 dated 15.11.2017 and Circular No. 17/17/2017-GST dated 15.11.2017, the amount of refund claimed shall get debited in the electronic cash ledger.
11.4 In order to facilitate sanction of refund amount of Central Tax and State Tax, all the District Deputy Commissioners are nominated as Nodal Officers of concerned District for the purpose of liasoning with their counterparts through a dedicated email id. As informed by the Central Tax Authorities, all the Divisional Deputy/Assistant Commissioners of Thiruvananthapuram Zone were nominated by the Central Tax, Central Excise and Customs Authorities for the above pupose.
11.5 A dedicated email id for communication with Central GST Ofifcers is created as “refund.sgst@kerala.gov.in. The details of email id and password will be communicated to all Nodal Officers of State GST Department seperately. The CBEC had created a dedicated email id for the above purpose asrefund.cgstkerala@gov.in
11.6 All the refund orders issued by State GST Authorities shall be communicated to the concerned counter part by email from email id “refund.sgst@kerala.gov.in” to the central mail id “refund.cgstkerala@gov.in” within 7 (seven) working days for the purpose of payment of the relevant sanctioned refund amount of tax or cess as the case may be.
Frequently Asked Questions On Refund
1. I have availed of drawback in respect of basic customs duty only. Am I eligible for refund of Central Tax?
A. A supplier availing of drawback only with respect to basic customs duty shall be eligible for refund of unutilized input tax credit of central tax / State tax / Union territory tax / integrated tax / compensation cess. Refund of eligible credit on account of State tax shall be available even if the supplier of goods or services or both has availed of drawback in respect of central tax.
2. I have committed an error while entering the details of an invoice / shipping bill / bill of export in Table 6A or Table 6B of FORM GSTR-1; can I rectify the same? Will it be taken into cognizance for processing of refund if rectification is allowed?
A. An error in the details of invoice / shipping bill / bill of export in Table 6A or Table 6B of FORM GSTR-1 of earlier period can be rectified in Table 9 of FORM GSTR-1 of a subsequent period.
It has been advised in Circular No. 37/11/2018 – GST issued by the CBEC that, while processing refund claims on account of zero rated supplies, information contained in Table 9 of FORM GSTR-1 of the subsequent tax periods should be taken into cognizance, wherever applicable.
3. Can deficiency memo be issued more than once with respect to a refund claim?
A. Deficiency memo can be issued only once for one refund application and once such a memo has been issued, the applicant is required to file a fresh refund application, manually in FORM GST RFD-01A. Further, once an application has been submitted afresh, pursuant to a deficiency memo, another deficiency memo will not be served with respect to the application for the same period, unless the deficiencies pointed out in the original memo remain unrectified, either wholly or partly or any other substantive deficiency is noticed subsequently.
4. I have transitional credit. Can I claim refund of that?
A. Transitional credit pertains to taxes paid under the Kerala Value Added Tax Act 2003, the same cannot be said to have been availed during the relevant period (period for which refund claim has been filed) and thus, cannot be treated as part of ‘Net ITC’ for the calculation of refund.
5. There is a discrepancy between values of GST invoice and shipping bill/bill of export? How refund will be processed?
A. During the processing of the refund claim, the value of the goods declared in the GST invoice and the value in the corresponding shipping bill / bill of export would be examined and the lower of the two values would be sanctioned as refund.
6. An exporter has made (a) exports upon payment of IGST as well as (b) without payment of IGST during a particular month. He has made payment of IGST by debiting his e-credit ledger. What is required to be done while processing his refund claim of unutilized ITC in respect of exports without payment of IGST?
A. The exporter is not entitled to get refund of the amount debited from e-credit ledger for payment of IGST as refund of unutilized ITC in respect of exports without payment of IGST since refund of IGST paid on goods exported would be processed by the system designated by Customs. In other words, refund of unutilized ITC is not admissible to the extent of input tax credit utilized(debited from e-credit ledger) for making payment of IGST on goods exported.
Disclaimer: The Standard Operational Procedure(SOP) provided in this document is intended only for informational purpose to provide a general overview and the document is not to be treated as legal advice or opinion. For greater details, you are requested to refer to the respective CGST/SGST/UTGST/IGST Acts, Rules and Notifications issued from time to time and to pursue actions accordingly.
This Standard Operating Procedure (SOP) is clarificatory in nature and not meant for legal interpretation of provisions of relevant acts and rules.
Note: [With effect from 23/10/2017, refund of IGST paid on goods or services exported out of India is not allowable if the applicant has received supplies on which the supplier has availed the benefit of notification No. 48/2017-Central Tax dated 18th October, 2017 or notification No. 40/2017-Central Tax (Rate) dated 23rd October, 2017 or notification No. 41/2017- Integrated Tax (Rate) dated 23rd October, 2017 (vide notification no. 2313 F.T. dated 29/12/2017 & 75/2017 – Central Tax dated 29/12/2017)]
Source-
1. https://ift.tt/2JxZiqlcontent/uploads/2018/06/MANUAL_REFUNDS_IN_GST_SOP.pdf
2. https://ift.tt/2JxZiqlcontent/uploads/2018/06/GST_REFUND_PROCESS_FLOW.pdf
