CHAPTER 24

 

Refund in GST

 

Application for refund

  1. Any person claiming refund on tax, interest, penalty, fees or any other amount may file an application in form GST RFD 01 electronically.
  2. Any claim for refund relating to balance in the electronic cash ledger may also be made through the return furnished for the relevant tax period.
  3. In case of exports of goods, application can be made only after the export manifest/report is delivered.
  4. In case of supplies to SEZ unit or developer, application can be filed after goods have been admitted in the SEZ for authorised operations and endorsed by the specified officer.
  5. In case of supplies regarded as deemed exports, application can be filed by the recipient of deemed export supplies.
  6. Refund claim by Casual Taxable Person/Non-resident Taxable Person, after adjusting tax payable out of advance tax paid, can be claimed in or after filing the last return as required by such persons.

 

Time limit for claiming refunds

  1. A person claiming refund should file an application to the proper officer before the expiry of 2 years from the relevant date.
  2. Relevant date, broadly, is as follows:
  • Export of goods and supplies to SEZ: Date of export
  • Deemed export: Date of return
  • Export of services: Date of receipt of foreign exchange or date of invoice
  • Refund of unutilised Input Tax Credit: End of the financial year in which such claim arises
  • Where tax becomes refundable as a consequence of judgement, decree, order, etc.,: Date of such order
  • In cases where tax is paid provisionally under CGST: Date of adjustment of tax after final assessment
  • In case of a person other than the supplier: Date of receipt of goods or services by such person
  • In any other case: Date of payment of tax

 

Unjust enrichment

  1. Based on the doctrine of unjust enrichment, the refund claimed will normally be paid into the Consumer Welfare Fund and not to the applicant unless the applicant can demonstrate, with evidence that he has not passed on the incidence of tax to any other person.
  2. In the following cases, refund will be paid out to the applicant:
  • Where refund relates to zero rated supplies of goods or services exported out of India or on inputs used in making such zero rated supplies
  • Refund of unutilised Input Tax Credit
  • Refund of tax paid on supply which is not provided
  • Refund where IGST has been paid instead of SGST/CGST
  • Refund on such other applications as the GST council may notify