1. Any person 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 FORM GST RFD-01 through the Common Portal before the expiry of two years from the relevant date.
Provided that a registered person, claiming refund of any balance in the electronic cash ledger may claim such refund in the return furnished in GSTR-3, GSTR-4 or GSTR-7. Provided further that in case of export of goods, application for refund shall be filed only after the export manifest or an export report, as the case may be, is delivered under section 41 of the Customs Act, 1962 in respect of such goods:
2. Relevant date means-
[a] in the case of goods exported -
[i] by sea or air, the date on which the ship or the aircraft in which such goods are loaded, leaves India; or
[ii] if the goods are exported by land, the date on which such goods pass the frontier; or
[iii] if the goods are exported by post, the date of dispatch of goods by the Post Office concerned to a place outside India;
[b] in the case of supply of goods regarded as deemed exports where a refund of tax paid is available in respect of the goods, the date on which the return relating to such deemed exports is furnished;
[c] in the case of services- the date of-
[i] receipt of payment in convertible foreign exchange, where the supply of services had been completed prior to the receipt of such payment; or
[ii] issue of invoice, where payment for the services had been received in advance prior to the date of issue of the invoice;
[d] in case where the tax becomes refundable as a consequence of judgment, decree, order or direction of the Appellate Authority, Appellate Tribunal or any court, the date of communication of such judgment, decree, order or direction;
[e] in the case of refund of unutilized input tax credit, the end of the financial year in which such claim for refund arises;
[f] in the case where tax is paid provisionally under this Act or the rules made there under, the date of adjustment of tax after the final assessment thereof; [g] in the case of a person, other than the supplier, the date of receipt of goods or services or both by such person; and [h] in any other case, the date of payment of tax. Important to note that In case of refund on account of export of goods, the refund rules do not prescribe BRC as a necessary document for filing of refund claim. However, for export of services details of BRC is required to be submitted along with the application for refund.
3. A registered person may claim refund of any unutilized input tax credit at the end of any tax period: Provided that no refund of unutilized input tax credit shall be allowed in cases other than-
[i] zero rated supplies made without payment of tax;
[ii] where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies [other than nil rated or fully exempt supplies], except supplies of goods or services or both as may be notified by the Government on the recommendations of the Council:
Where the application relates to refund of input tax credit, the electronic credit ledger shall be debited by the applicant in an amount equal to the refund so claimed.
4. No refund of unutilized input tax credit shall be allowed in cases where the goods exported out of India are subjected to export duty: Further, no refund of input tax credit shall be allowed, if the supplier of goods or services or both avails of drawback in respect of central tax or claims refund of the integrated tax paid on such supplies. Where the amount claimed as refund is less than two lakh rupees, it shall not be necessary for the applicant to furnish any documentary and other evidences but he may file a declaration, based on the documentary or other evidences available with him, certifying that the incidence of such tax and interest had not been passed on to any other person.
5. The proper officer may, in the case of any claim for refund on account of zero-rated supply of goods or services or both made by registered persons, other than such category of registered persons as may be notified by the Government on the recommendations of the Council, refund on a provisional basis, ninety per cent. of the total amount so claimed, excluding the amount of input tax credit provisionally accepted, and thereafter make an order for final settlement of the refund claim after due verification of documents furnished by the applicant. Forms RFD- 4 for provisional refund sanction and RFD- 5 for payment advice will be used.
6. The proper officer shall issue the order within sixty days from the date of receipt of application complete in all respects. The refundable amount shall be paid to the applicant, if such amount is relatable to-
[a] refund of tax paid on zero-rated supplies of goods or services or both or on inputs or input services used in making such zero-rated supplies;
[b] refund of unutilized input tax credit.
[c] refund of tax paid on a supply which is not provided, either wholly or partially, and for which invoice has not been issued, or where a refund voucher has been issued;
[d] refund of tax in pursuance of Tax wrongfully collected i.e A registered person who has paid the Central tax and State tax or, as the case may be, the Central tax and the Union territory tax on a transaction considered by him to be an intra-State supply, but which is subsequently held to be an inter-State supply and/or A registered person who has paid integrated tax on a transaction considered by him to be an inter-State supply, but which is subsequently held to be an intra-State supply, shall not be required to pay any interest on the amount of central tax and State tax or, as the case may be, the Central tax and the Union territory tax payable. paid to Central Government or State Government.
[e] the tax and interest, if any, or any other amount paid by the applicant, if he had not passed on the incidence of such tax and interest to any other person; where the amount of tax has been recovered from the recipient, it shall be deemed that the incidence of tax has been passed on to the ultimate consumer. In case the tax has been passed on to the consumer, the amount so refunded shall be credited to the Consumer Welfare Fund - Section 57 of the CGST/SGST Act
[f] the tax or interest borne by such other class of applicants as the Government may, on the recommendations of the Council, by notification, specify.
7. Where any refund is due to a registered person who has defaulted in furnishing any return or who is required to pay any tax, interest or penalty, which has not been stayed by any court, Tribunal or Appellate Authority by the specified date (the last date for filing an appeal under this Act) the proper officer may-
[a] withhold payment of refund due until the said person has furnished the return or paid the tax, interest or penalty, as the case may be;
[b] deduct from the refund due, any tax, interest, penalty, fee or any other amount which the taxable person is liable to pay but which remains unpaid under this Act or under the existing law.
8. No refund shall be paid to an applicant, if the amount is less than one thousand rupees. If any tax ordered to be refunded to any applicant is not refunded within sixty days from the date of receipt of application , interest at such rate not exceeding six per cent. as may be specified in the notification issued by the Government on the recommendations of the Council shall be payable in respect of such refund from the date immediately after the expiry of sixty days from the date of receipt of application under the said sub-section till the date of refund of such tax:
Provided that where any claim of refund arises from an order passed by an adjudicating authority or Appellate Authority or Appellate Tribunal or court which has attained finality and the same is not refunded within sixty days from the date of receipt of application filed consequent to such order, interest at such rate not exceeding nine per cent. as may be notified by the Government on the recommendations of the Council shall be payable in respect of such refund from the date immediately after the expiry of sixty days from the date of receipt of application till the date of refund.
9. The refund arising out of existing law will be paid as per the provisions of the existing law and will be made in cash and will not be available as ITC. Today under VAT/CST merchant exporters can purchase goods without payment of tax on furnishing of a declaration form H. There is no such provision in the GST law. They will have to procure goods upon payment of tax and claim refund of the unutilized input tax credit. Presently under Central law, exporters are allowed to obtain duty paid inputs, avail ITC on it and export goods upon payment of duty (after utilizing the ITC) and thereafter claim refund of the duty paid on exports. this system will continue in GST.
10. Refund Application shall be accompanied by any of documentary evidences, as applicable, i.e. the reference number of the order and a copy of the order passed Or a statement containing the number and date of shipping bills or bills of export and the number and date of relevant export invoices, in a case where the refund is on account of export of goods; Or a statement containing the number and date of invoices and the relevant Bank Realization Certificates or Foreign Inward Remittance Certificates, as the case may be, in a case where the refund is on account of export of services; Or A statement in Annex 1 of FORM GST RFD-01 containing the number and date of invoices received and issued during a tax period in a case where the claim pertains to refund of any unutilized input tax credit. Or a statement showing the details of transactions considered as intra-State supply but which is subsequently held to be inter-State supply; or a statement showing the details of the amount of claim on account of excess payment of tax; and/or a declaration to the effect that the incidence of tax, interest or any other amount claimed as refund has not been passed on to any other person, in a case where the amount of refund claimed does not exceed two lakh rupees:
Or Certificate in Annex 2 of FORM GST RFD-01 issued by a Chartered Accountant or a cost accountant to the effect that the incidence of tax, interest or any other amount claimed as refund has not been passed on to any other person, in a case where the amount of refund claimed exceeds two lakh rupees: Forms to be used Application for refund will be form RFD-1 and acknowledgement in RFD-2 within 15 days at Common portal will be issued. The claim of refund will be sanctioned by the proper officer in Form GST RFD-06 if the claim is found to be in order and payment advice will be issued in Form GST RFD- 05.
The refund amount will then be electronically credited to the applicants given bank account. Deficiencies, if any, in the refund claim has to be pointed out within 15 days. A form GST RFD-03 will be issued by the proper officer to the applicant pointing out the deficiencies through the common portal electronically requiring him to file a refund application after rectification of such deficiencies. When the proper officer is satisfied that the claim is not admissible he shall issue a notice in Form GST RFD-08 to the applicant requiring him to furnish a reply in GST RFD -09 within fifteen days and after consideration of the applicant's reply, he can accept or reject the refund claim and pass an order in Form GST RFD-06 only. RFD-7 order form will be used for adjustment of outstanding demand against refund.