GST REFUND
1 Refund can be claimed in the Following situation under Goods and Services Tax (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.
2 Relevant Date for Claiming GST 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.
Relevant Date means:-
| Situation | Relevant Date |
| Goods are exported by sea or air | Date on which the Ship or the Aircraft in which such goods are loaded, leaves India |
| Goods are exported by land | Date on which such goods pass the frontier |
| Goods are exported by post | Date of dispatch of goods by Post Office concerned |
| Goods regarded as deemed exports | Date on which the return relating to such deemed exports is filled. |
| Services exported out + supply of service had been completed prior to the receipt of payment | Date of Receipt of payment |
| Services exported out + payment received in advance prior to the date of issue of the invoice | Date of Issue of invoice |
| Tax refundable in consequence of judgment, decree, order or direction of Appellate Authority, Appellate Tribunal or any Court | Date of communication of such judgment, decree, order or direction |
| Unutilized input tax credit | End day of the financial year in which such claim for refund arises |
| Tax is paid provisionally under this Act | Date of adjustment of tax after the final assessment |
3 Eligibility for getting Refund by Applicant
Refund shall be paid to the applicant, if such amount is relatable to –
A) 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
B) 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.
4. 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.
5. 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
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 ofexport 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.