Maximum tax savings every time!

ClearTax All-in-one Kit (GST+ITR+TDS Softwares)

Fastest Matching | Smart Reports | 100% Accurate Filing | 100% ITC

After the issue of Provisional Refund (RFD-04) of GST on receipt of Refund Application, a GST Officer has to investigate and examine refund claim.

The GST Officer issue one of the following order after investigation-

  1. RFD-06: GST refund order
  2. RFD-07: Complete Adjustment/ Withholding of Refund
  3. RFD-08: Whole or Part of Refund is Inadmissible
  4. RFD-09: Reply to notice
  5. RFD-05: Payment Advice

 

Latest Updates on GST Refund

Update as on 27th June 2020

A full or part of the amount applied for refund may have been rejected via a notice issued by the authority. After completing the due proceedings, a final order must be issued within 60 days from the date of receipt of the refund application.

In case this time limit is expiring between 20th March to 30th August 2020, the last date to issue order shall be extended to the later of following dates:

  • 15 days from the date of receiving a reply from the applicant towards the notice, or
  • 31st August 2020

Update as on 3rd April 2020

The time limit for completion or compliance has been extended to 30th June 2020, where the time limit/time limit/ date of expiry falls between the period from 20th March 2020 to 29th June 2020. It includes cases where the time limit to apply for GST refund in RFD-01 expires between 20th March 2020 and 29th June 2020.

Update as in Sept 2019

RFD-01 (complete online refund processing functionality) is implemented from 26th September 2019.

RFD-06: GST refund order

A GST Officer has to process the refund application within 60 days from the date of submission of application.

If the amount of refund is admissible an order will be issued in RFD-06 electronically.

The Refund Sanction Order contains the following details:

1. Amount of refund claimed: This is the total refund claimed by you while applying for the refund.

2. Refund sanctioned on provisional basis: The amount of refund sanctioned in RFD-04 provisionally is specified in this section

3. Refund amount inadmissible: Any amount of refund that is not allowable as per law is specified here along with the reason.

4. Gross amount to be paid: This is the difference between -Refund claimed (minus) Provisional refund (minus) Inadmissible refund

5. Amount adjusted against outstanding demand: If there is any outstanding demand amount to be paid to the GST authorities it will be reduced from the gross refund payable to you.

6. Net amount to be paid: Any balance refund after reducing outstanding demand against gross refund is paid out.

Untitled

The refund is processed by issuing RFD-05 (payment advice)

 

RFD-07: Complete Adjustment/ Withholding of Refund

RFD-07 is issued by the GST officer in cases where refund claimed by the applicant is fully adjusted against any outstanding demands (PART A) or refund is withheld due to certain reasons (PART B).

The order for complete adjustment/ withholding of refund contains the following details:

Order for Complete Adjustment of Sanctioned Refund (Part A)

i. Amount of Refund claimed: Total refund claimed by you in refund application.

ii. Net Refund Sanctioned on Provisional Basis: the amount of provisional refund is specified here. This is usually 90% of refund claimed by you.

iii. Refund amount inadmissible rejected: Amount of refund that is not allowed and rejected along with the reason for rejection of refund.

iv. Refund admissible: This is the difference between – Refund claimed (minus) Provisional refund (minus) Inadmissible refund.

v. Refund adjusted against outstanding demand: The details of the outstanding demand that you have not paid along with order number and date will be provided.

vi. Balance amount of refund: The balance refund payable is nil in case of this order since the entire refund is adjusted against outstanding demand.

1

Order for Withholding the Refund (Part B)

i. Amount of Refund Sanctioned

ii. Amount of Refund Withheld

iii. Amount of Refund Allowed

All these details along with reason for withholding refund will be provided in RFD-07

2

 

RFD-08: Whole or Part of Refund is Inadmissible

After appropriate processing, if a part or whole of the refund is inadmissible the GST Officer will issue RFD-08.

RFD-08 is basically issued on the rejection of the application of refund.

RFD-08 provides the reason for which the refund is proposed to be rejected.

The notice also required the taxpayer to respond to it. The taxpayer has to provide reasons as to why the refund should not be rejected within 15 days or receipt of the notice.

Here is how the notice looks like:

3

 

RFD-09: Reply to notice

A taxpayer who receives the notice in RFD-08 has to reply to it in RFD-09 along with the documents as requested in the notice.

When no refund is admissible the GST Officer directs the refund applicant to provide a reply in RFD-09.

The reply to the notice contains the following details:

1. Reference No. of Notice

Date of issue

2. GSTIN/ UIN

3. Name of business

4. Trade name

5. Reply to the notice: The taxpayer has to provide the reasons by which he is eligible for issue of refund.

6. List of documents uploaded: The documents as required in RFD-08 has to be uploaded while submitting RFD-09.

4

On receipt of the reply in RFD-09, the GST Officer has to assess whether refund should be issued or not.

 

RFD-05: Payment Advice

The net amount of refund along with interest if (any) is issued by the GST Officer in RFD-05 and the refund is credited to the taxpayers bank account electronically.

RFD-05 is also issued when an order is made under RFD-06  and the entire refund is to be credited to Consumer Welfare Fund.

Use ClearTax to Match & Claim

10% Provisional ITC Accurately Before Filing

image-for-cta-300px
File Now