Scroll Top

search-icon
    drop-arrow

    GST Refunds

    Introduction

    The word "refund" means, in basic terms, a sum of money that is returned to an individual when an event occurs. In taxation parlance, refund applies to any amount that is due from tax administration to the taxpayer due to excess payment of taxes or some other cause.

    Goods and Services Tax (GST) refund is now an open topic that is a challenge for almost all classes of taxpayers, particularly exporters as it directly impacts their working capital.

    Types

    The following are the different types of refunds under the GST regime:

    • Refund of excess balance in electronic cash ledger
    • Refund of accumulated ITC on account of exports of goods/services without payment of tax
    • Refund on account of supplies to SEZ unit/developer (without payment of tax)
    • Refund of ITC accumulated due to inverted tax structure
    • Refund to the recipient of deemed export
    • Refund on account of supplies to SEZ unit/developer
    • Refund on account of export of goods
    • Refund on account of export of Services
    • Refund on tax paid on an intra-state supply which is subsequently held to be inter-state supply and vice versa
    • Refund by the supplier of deemed export
    • Refund on account of excess tax payment
    • Refund on account of other reasons
    • Refund on account of assessment/provisional assessment/appeal/any other order
    • Refund to embassies/international organisations

    Time Limit

    The refund application has to be submitted in RFD 01 Form within two years from the relevant date. The form should also be certified by a Chartered Accountant if it exceeds the prescribed amount. The relevant date is distinct in every case, and here are the relevant dates for some cases:

    |Reason for claiming GST Refund | Relevant Date | | ------------ | ------------ | | Excess payment of GST |Date of payment | |Export or deemed exports |Date of despatch/loading/passing the frontier | |ITC accumulates as output is tax-exempt or nil-rated |Last date of the financial year to which the credit belongs | |Finalisation of provisional assessment |Date on which tax is adjusted |

    Interest on Refund

    Once a refund application is filed, the GST officer may issue an order within 60 days if he is satisfied with the whole or partial refund amount claimed. If the refund is not provided within 60 days of the application by the proper officer, then the refund has to be paid with interest at 6% p.a., calculated for the period of delay.

    The interest shall be paid by issuing payment advice in RFD-05. Payment advice (RFD-05) contains the amount of refund delayed, the period of delay, and the amount of interest being paid. The interest amount is directly credited to the registered bank account, which was declared at the time of GST registration.

    Index

    Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

    Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

    CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

    Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

    Cleartax is a product by Defmacro Software Pvt. Ltd.

    Company PolicyTerms of use

    ISO

    ISO 27001

    Data Center

    SSL

    SSL Certified Site

    128-bit encryption