HOW TO TAKE GST REFUND

Posted by Himani Bihani
On 21 Feb 2020

At Present, GST Refund is a something, which is an essential for everyone to know about. But there’s a lack of awareness in the businesses, so here we will try to increase some knowledge in the area of  GST Refund.

One of the Key Interest Area for the Businesses, who should take Refund of GST ?

  • Excess GST paid due to mistake :- If any registered person mistakenly paid excess GST and is not able to utilize such GST amount in payment of GST liability.
  • Export of Goods or Services :- It refers when goods or services is exported out of India and it attracts zero rate under GST.
  • Deemed Exports :- It refers to the transactions in which the goods supplied do not leave the country and the payment for such supplies is received either in Indian rupees or in free foreign exchange.
  • Refund of Input Tax Credit, in case of Inverted Duty Structure :- If there is higher rate of GST at the time of purchase goods but less output GST at the time of sale so assessee may claim the difference amount as GST refund.
  • Supplies made to SEZ Units and its Developers :- Any supplies made to SEZ units it attracts zero rate in GST so assessee may claim his refund.

As we discussed above about in which cases we can claim refund, now let’s begin with the process that how we can claim refund or what’s the procedure and form through which we can claim GST refund

  • Once you identify that you have some refund or excess amount in your cash ledger than you have to file GST refund Form – RFD-01
  • When the assesse submits his GST Refund form he gets an acknowledgement from GST Department in Form – RFD-02 which is auto-generated
  • If there is any deficiencies found by assesse in GST refund form RFD-01 than assesse may correct it in GST refund Form RFD-03
  • If officer is satisfied on the whole or part of the claim than he conveys in Form RFD- 05 after that within 60 days refund will be credited
  • If it takes more than 60 days than interest will be credited along with the amount of claim.
  • Form RFD-04 will used in case of refund by export of goods or services
  • Form RFD-10 if claim is demanded by United Nation, Foreign Embassy with in  90 days
  • If the refund is on account of export of goods and/or services, the authorized officer will refund 90% of the total amount claimed

So, we will conclude this blog at here but later on we will post some more articles on some interesting topics so just stay turned on with our blogs and keep update yourself with interesting facts and law.

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