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.

Who Can Claim Refund in GST?

Any business owner can submit a claim for a GST refund on the following grounds:

1. If he is an exporter of specified services and/or goods.
2. Is a deemed exporter or supplier to SEZs and developers.
3. A claim for refund may also arise on the direction of a court of law or the Appellate Tribunal or Authority.
4. On any purchases made by a foreign embassy or the UN.
5. Finalised provisional assessment.
6. The refund may also be on account of Input Tax Credits owing to an inverted duty structure except for any fully exempt or nil-rated supplies.
7. Excess payments of GST by mistake.
8. A refund of any deposit made earlier.
9. Refund by way of refund voucher issuance for any tax paid on an advance amount for services and goods that were not supplied.
10. SGST and CGST refunds are based on treating a particular supply as an intra-state supply.
11. A refund to any international tourist who has paid GST on any goods bought in India to be subsequently carried abroad.

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.

How to Claim GST Refund: Documents Required

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.

For Input Tax Credit: a statement with all invoice details, prescribed by rules on GST refund, needs to be submitted.

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.

Conclusion

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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Frequently Asked Questions

How can I claim a refund in GST?

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.

When can I claim a refund under GST?

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.

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