The Indian government’s GST Council has started operating a fully standardised and simple system for processing claims on GST refunds. The claim for a GST refund and its processing can be made on the portal for GST online.
Any business owner can submit a claim for a GST refund on the following grounds:
However, the applicant needs to file his refund claim within two years, and the refund has to be made within 60 days from the date of the claim. Moreover, the interest payable on any delayed refund is 6% and 9% per year for any refund delayed beyond 60 days after a court order has passed.
The applicant must compulsorily submit the following documents to claim a GST refund:
For supply or exports to SEZs: relevant transaction invoices must contain the numbers and dates of export bills. All bank certificates that show that the payment was received in a foreign currency are also required.
For refund claims on supplies to any SEZ unit: all documents showing that the SEZ indeed received the goods need to be submitted. Furthermore, the applicant has to produce a declaration given by the SEZ that states that he has not availed of any input tax credits yet from his supplier.
The order’s reference number and all tax invoices must be enclosed for court orders.
If the refund amount is below ₹2 Lakhs, the applicant must submit a self-declaration that the tax liability hasn’t been passed on to a third party. For claims exceeding ₹2 Lakhs, however, a Chartered Accountant’s certificate needs to be submitted.
The application for a refund must be submitted online through Form RFD 01 within a period of 2 years. The application will likely be inspected or audited after that and subsequently approved by the Competent Authority. Once approved, the taxpayer receives his refund in his official bank account.
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The application must be made online on Form RFD 01 within a period of 2 years, and the relevant supporting documents must also be uploaded. Once the application has been inspected or audited, it is approved, and the refund amount is remitted to the taxpayer’s official bank account.
The claim must be made within two years by any exporter or supplier to SEZs or based on a court order on the same, any excessive GST already paid, or any prepaid deposits.