Claiming refund of any tax and interest, if any, paid on such tax or any other amount paid by him may make an application in that regard to the proper officer of IGST/CGST/SCGST before the expiry of two years from the relevant date in such form and in such manner as may be prescribed.
However the limitation of two years shall not apply where such tax or interest or the amount referred to above has been paid under protest.
A taxable person may also claim refund of any unutilized input tax credit at the end of any tax period subject to condition specified.
In the following situations refund can be claimed under GST (Refund under GST)
• Export of Goods or Services (Including Deemed Export)
• Refund of Unutilized Input Tax Credit
• Refund from Manufacturing / Generation/ Production – tax free supplies
• Excess payment due to mistake and inadvertence
• Finalization of Provisional Assessment
• Refund for Tax payment on transactions by UN bodies, CSD Canteens, Para-military forces canteens, etc.
• Refund of pre deposit in case of Appeal.
Refund Under GST -Export of Goods or Services (Including Deemed Export)
• In case of exports of goods and/ or services out of India on which export duty is not payable then tax paid inputs and claiming refund of the paid taxes at the time of export.
• In case of exports of goods and/ or services out of India on which export duty is payable then availing the input tax credit of duty paid inputs and exporting finished goods after payment of duty (after utilizing such input tax credit) and thereafter claiming the rebate of the duty paid on export. Refund of the unutilized input tax credit can’t be claimed.
Refund Under GST – Refund of Unutilized Input Tax Credit
• Refund of the unutilized input tax credit can be claimed at the end of any tax period If rate of tax on inputs is higher than the rate of tax on outputs.
Refund from Manufacturing / Generation/ Production/creation of tax free supplies
• Refund of tax paid on inputs used for the Manufacturing / Generation/ Production/creation of tax free supplies.
Excess payment due to mistake and inadvertence
• Refund of Excess payment of tax either by mistake or by inadvertence resulting in more payment of tax than due to the Government.
Finalization of Provisional Assessment
• When assessee will be entitled to Refund in the consequent to the order for final Assessment.
Refund for Tax payment on transactions by UN bodies, CSD Canteens, Para-military forces canteens etc.
• Supply to UN Bodies, Embassies, CSD Canteens and Para-military forces canteen will be taxed, which later on can be claimed as refund by them.
• UN Bodies, Embassies, CSD Canteens and Para-military forces canteen will be required to take a Unique Identity Number and purchases made by them will be reflected in the return of outward supplies of the supplier and refunds of taxes can be granted.
Refund Under GST –Refund of pre deposit in case of Appeal
• Where an amount deposited by the appellant for appeal is required to be refunded consequent to any order of the First Appellate Authority or of the Appellate Tribunal.
Relevant Date for Claiming Refund
• For claiming refund, application shall be made within 2 years from the relevant date. If refund of tax and interest has been paid under protest then the limitation of 2 years shall not be apply.
Eligibility for getting Refund by Applicant
Refund shall be paid to the applicant, if such amount is relatable to –
1. Refund of tax and interest or any other amount paid by the applicant + he had not passed such tax and interest to any other person
2. Tax or interest borne by such other class of applicants notified by as the Central or State Government on the recommendation of the Council.
On receipt of any application, if proper officer is satisfied that the whole or part of the amount claimed as refund is not eligible for refund then he may make an order accordingly and amount so determined shall be credited to the Consumer Welfare Fund.
Time Limit for Granting Refund
Refund order will be sanctioned within ninety days from the date of receipt of complete application.
If any refund amount is not refunded within three months from the date of receipt of application then interest at such rate as may be specified in the notification issued by the Central or a State Government on the recommendation of the Council shall be payable in respect of such refund from the date immediately after the expiry of the due date till the date of refund of such tax.
Requirements for Input Tax Credit Refund in India under GST
Input tax credit is basically a tax, which is paid or payable during the course of business on the purchase of any good, manufactured or made through a registered dealer for a particular state these are basically those taxes, which are paid on credits for input. The word input generally means those goods, which gets purchased by the dealers in the course of his business for his personal use or resale or for any other use in the course of business under specific circumstances.
Every dealer is liable for taxation for input, but not on all inputs. There are certain restrictions and conditions on its eligibility. It is basically a mechanism by which the dealer becomes enabled to set off against his input tax.
Requirements for the input tax credit are as follows:
GST Tax Invoice:-
It is one of an essential item subject to the refund of the input tax credit. A GST tax invoice shall be retained whenever an input tax is paid.
Receive the Goods and Services:-
Whenever a tax credit refund gets claimed, the goods and services on which it is claimed shall be received. A proof of it shall also be required to process the refund of input tax credit by the respective GST authorities, a proof of actual tax paid by the dealer or supplier to the government. If such a claim is filed for example the concerned authorities of GST need an ITC, then a proof of tax paid. If the GST has not been paid or the proof has not been retained the, no refund of input tax credit can be claimed.
Furnishing of GST Return:-
It is compulsory for every GST taxpayer to file the returns to the concerned GST authorities. Therefore, to apply for GST input tax credit, a copy of GST return is necessary. The details of the transactions shall also be included in the returns furnished so that they could easily verify and check the authenticity of the input tax credit paid to the dealer of the specified goods and (or) services.
What shall be the relevant date for claiming refund in case of export of services?
In the case of export of services out of India, the relevant date shall be –
• Receipt of payment in convertible foreign exchange, where the supply of service had been completed prior to the receipt of such payment; or
• Issue of invoice, where payment for the service had been received in advance prior to the date of issue of the invoice.
Other Important Provisions
If refund amount is less than Rs. 1,000/- then no refund shall be paid.
Where an order giving rise to a refund is the subject matter of an appeal or further proceeding or where any other proceeding under this Act is pending and the Commissioner / Board is of the opinion that grant of such refund is likely to adversely affect the revenue then after giving an opportunity of being heard to assessee withhold the refund till such time as it will determine in appeal or proceeding as the case may be.
Where a refund is withheld in previous provision and assessee shall be entitled to interest on such refund, if result of the appeal or proceeding will be in favour of assessee.
The applicant must submit documentary evidences including invoice or similar document which are issued by him to establish the fact that incidence of tax/interest/amount paid was not passed on by the applicant to any other person.
If the amount of refund claim is less than Rs.5 lakhs, there is no need of filing such documentary evidence instead, a self-declaration based on the documentary and other evidences by the applicant certifying that he has not passed on the incidence of such tax and interest is sufficient to claim refund.
It is also provided that in case of refund claim by notified registered taxable person where refund is on account of export of goods and/or services, refund will be limited to 80% of the total amount claimed (excluding input tax credit not yet finalized).
This refund of 80% will be on a provisional basis, and will be subject to certain conditions. Remaining 20% may be refunded after due verification of documents furnished by the applicant.