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Gst refund and gstr3b

M Agarwal (Consultant) (228 Points)

13 September 2017

1) How does the process of IGST refund occur? I have heard the option to claim refund are not active on the site. Do we have any news on that?

2) Suppose for month of August I don't have any sales, but only consumed b2b services. Can I just claim back the ITC, will it be refunded?

3) Registration was completed on 31st August. Do we need to file GSTR3b for month of August. We have only one consumption transation, that too on 10th August, before GST registration.

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3 Replies

Harsh Surana (Chartered Accountant) (51 Points)
Replied 13 September 2017

Dear,

Refund can be claimed only in two circumstances (according to Sec 54 of CGST act)

In case of export including zero rated supply without payment of tax.
where the rate of input tax credit is higher than the output tax [ other than nil rated and fully exempt supplies

So first you have to see whether above conditions are applicable to you or not and if not then you will get Credit of same and it will be available in your GST Ledger account in GST portal upto 2 years.

So for answer 1 and 2 you may apply for GST refund by submitting GST Refund form however above conditions have to be compiled

for point no 3, yes you have to file GSTR 3B since you have recivied your registration on 31st Aug even if you file NIL Return and you may revise previous bill or through same bill but you have to pay GST from your pocket

Regards

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M Agarwal (Consultant) (228 Points)
Replied 13 September 2017

Thanks for your response. We are NIL rated.

All of our transactions are export of service. We are planning to submit the 18% IGST and then take a refund( instead of getting to the bond route) as we don't have many transactions per year and would like to do less paperwork.

So, for many months we will only take input but will have no sales. Can we just claim that back? If there are no selling transactions, I won't have any papers for it, so what do I submit to get the refun?

Harsh Surana (Chartered Accountant) (51 Points)
Replied 13 September 2017

Mr.Agarwal since you are exporting with payment of Tax then refund can be claimmed only when you have paid IGST and then only you can cliam the IGST refund before that you cannot get the IGST refund and refund for your input same can be setof with output tax liability and balance will be availble for refund only after export has been done

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