Clarification on Statements to be Annexed With the Application for Refund

In our previous article, we had discussed the format of form GST RFD-01 in detail. There are certain statements to be annexed along with the form GST RFD-01 based on the reason for claiming the refund. There are 7 different statements specified depending upon the reason for claiming the refund. A certificate is also required at the time of filing GST RFD-01, which requires the signature of a chartered accountant or a cost accountant.  All the statements will be auto-populated on the common portal and the applicant has to select the corresponding invoices for which the refund is claimed.

Latest Update on GST Refund

05th July 2022
Taxpayers can exclude the COVID pandemic period (1st March 2020 and 28th February 2022) while calculating the time limit for filing GST refund applications under Sections 54 or 55 of the CGST Act.

1st February 2022
Budget 2022 update-
1. Section 54 is amended to provide that refund claim of any balance in the electronic cash ledger can be made in a particular form and manner prescribed.
2. The time limit to claim refund by UN agencies is now two years from last day of quarter when supply was received instead of six months.
3. The restriction to refund taxpayers for tax defaults, that earlier applied to unutilised ITC refund, is now extended to other types of refunds.
4. The relevant date to file refund claim application for supplies to SEZ is clarified in new sub-clause (ba) of clause (2) of the explanation.

1st May 2021 
Where the time limit to pass orders for rejecting any refund claim fully or partly falls between 15th April 2021 and 30th May 2021, it is extended. The extended time limit shall be later of two dates:
(1) 15 days after reply to notice OR
(2) 31st May 2021
 

Clarification on Statements to be Annexed With the Application for Refund

Statement 1

It has to be annexed with form GST RFD-01 if the refund is claimed due to the tax rate being higher on the inputs used then the tax rate on the sales. Details of the tax paid on the output under different heads like CGST, SGST, UTGST and IGST would be mentioned in the details to be provided for outward supplies. There will be two separate tables for the inward and outward supplies. Details regarding the tax paid on inputs and the total ITC available under above mentioned different heads would appear in the statement.

For Example:

Glow Private Limited signed a contract for providing investment consultancy services to Viraj Consultants for a sum of Rs 5 lakh. Glow Private Limited had a tax liability for the above service provided of Rs 90,000 due to the 18% tax charged under GST based on the contract with Glow private limited. Glow Private Limited paid tax on inputs at the rate of 28% and the ITC available was Rs 1,00,000. Glow Private Limited can claim the refund of Rs 10,000 for the excess tax paid on inputs. Viraj Consultants can claim the refund for the excess tax paid on the inputs than the final tax liability on output, by filing form GST RFD-01 annexed with statement 1 and certificate signed by a chartered accountant or cost accountant. 

Statement 2 

It has to be annexed in the case of an application for refund filed for the tax paid on exports. Shipping bill details like port code and date and export general manifest (EGM) details are mandatory to be mentioned in the table under statement 2. Reference number and date mentioned in the bank reconciliation certificate (BRC) or foreign inward remittance certificate (FICR) has to be shared in the table under the statement 2. 

Statement 3

A similar statement with similar details has to be annexed along with form GST RFD-01 in the case where the exports were made without making the tax payment.

Statement 4

A statement has to be annexed by the applicant in the case of supply of good or services to a SEZ unit/SEZ developer. Following are the details to be provided in the table:

1. The point of supply if it is different from the place of the recipient
2. Whether the reverse charge is applicable on the supply or not
3. The date on when the supply was received by SEZ unit/SEZ developer (mandatory in case of goods)
4. Whether supply is a deemed export or not
5. Reference number and date of filing the application for removal of excisable goods for export (mandatory in case of goods)
6.  Details of the payment received for the supply made to SEZ unit/SEZ developer (mandatory in case of services)
7. GSTIN of the e-commerce operator (if applicable)

Statement 5 

It is to be attached in the case of goods supplied from an export-oriented unit or in the case of the goods being treated as deemed exports. Following details are required in statement 5:

1. GSTIN of the supplier
2. Taxable value, HSN/SAC, and quantity of the goods supplied
3. Only an unregistered dealer has to mention “STATE” from which goods are supplied
4. Details of CGST and SGST charged or IGST charged and cess charged has to be mentioned separately
5. In case of interstate supply of goods, point of supply has to be mentioned
6. Tax charged is eligible for ITC on inputs/capital goods/input services has to be mentioned in the statement
7. The amount of ITC available under different heads CGST, SGST, UTGST, IGST, and cess
8. Tax amount mentioned on the credit/debit note
9. Net ITC on the goods/service on which invoice is raised

Statement 6 

This statement is filed in the case of refund claimed due to an interstate supply of goods and services being later considered as intrastate or vice-versa. Following details have to be shared in the statement:

1. GSTIN or name in case of the supply of goods to a consumer
2. Date and taxable value mentioned in the invoice
3. Tax paid under the different heads like CGST, SGST, UTGST, IGST and cess as mentioned in the invoice and for the reversal as well
4. Place of supply has to be mentioned only is it is different from the place of the recipient of goods or services

Statement 7 

It is to be attached when there was excess tax paid in the last GSTR 3 filed. Following details are to be mentioned:

1. Tax period for which GSTR 3 is filed
2. Reference number and date of filing GSTR 3
3. The amount of tax payable as assessed under different heads CGST, SGST, UTGST, IGST, and cess

Statement 8 

It is to be attached when an unregistered person is claiming a GST refund on account of excess tax payment due to cancellation or termination of agreement or contract for the supply of service. The unregistered taxpayer must submit the following documents:

1. A statement containing the invoice details, i.e., invoice number, date, value, tax paid, etc.
2. Copy of such invoices
3. Proof of making payment to the supplier
4. Copy of agreement, registered agreement, or contract, as applicable.
5. The letter issued by the supplier for cancellation or termination.
6. Details and proof of payment received from the supplier against cancellation or termination of the agreement.
7. Certificate from the supplier stating that:
   1. He has paid tax in respect of the invoices on which the refund is being claimed, and 
   2. He has not adjusted the tax against his liability by issuing a credit note; and 
   3. He has not claimed and will not claim a refund of the amount of tax involved in respect of these invoices.

You can find the exact format of statement to be annexed to the application for refund on the department’s website.

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