What is the Process for GST Refund and How to claim?

What is GST Refund?

A GST refund is the process by which registered taxpayers can claim a GST amount available into the GST login portal account in the form of cash or Input Tax Credit (ITC).

What are the reasons for the GST refund?

The following are the examples of when taxpayers can claim their GST Refund:

• The very common reason could be When additional tax is paid or deposited due to errors or defects;
• In case of accumulated ITC due to exports / deemed exports of goods or services;
• There is an Input Tax Credit (ITC) accumulation because of output tax is lower than the inward tax (i.e. tax paid for procurement of raw materials) known as an inverted duty structure;
• IGST paid on export of services or goods (with payment of tax);
• For purchases made by UN agencies or embassies;
• On finalization of the provisional assessment, assessment, or appeal, or any other order, where the amount was deposited.

What is the Process for GST refund?

The application for a GST refund must be submitted using the online application in the GST login portal via form RFD 01 within two years from the relevant date. The form also requires a certificate from a Chartered Accountant or a cost accountant, in a case where the amount of the refund claim exceeds two lakh rupees.

What are the Relevant dates for GST refund?

Reasons for claiming GST refund	Relevant date
Excess payment of GST	Date of payment
Export or deemed export for goods or services.	Date of dispatch/loading/passing of the frontier
ITC accumulated due to zero-rated or export supplies.	Date of issue of invoice or payment

What are the documents required for the filing of a refund application?

• The person must file all the applicable GST returns.
• Statement, Undertaking, and declaration as per Rule of CGST, 2017
• Export Invoices and & Input Tax Credit Invoices.
• BRC/FIRC. BRC or Bank Realisation Certificate acts as proof that an exporter has received payment from the particular importer for the respective exported goods. FIRC is a Foreign Inward Remittance Certificate that acts as proof of all the inward remittances made to India.
• Any other document as may deem fit to the officer for the issuance of refund.

Point to consider:

• Registered person can submit their refund request for any period (monthly, quarterly, half-yearly or annually). However, if the refund amount is less than INR 1000 then the person will not be eligible for a refund.