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Q.4

Explain in detail the rules for claiming refund of GST.

Ans.

Rule 89

Application for refund of tax 

Rule 90

Acknowledgement

Rule 91

Grant of provisional fund

Rule 92

Order sanctioning refund

Rule 93

Credit of the amount of rejected refund claimed

Rule 94

Interest on delayed refunds

Rule 95

Refund of tax to certain persons

Rule 96

Refund of integrated tax paid on goods exported out of India

Rule 97

consumer welfare fund


Rule 89:-

  • Any person claiming refund tax, interest, penalty, fees or any other, may file an application electronically in FORM GST RFD-01 through the Common Portal, either directly or through a Facilitation Centre notified by the Commissioner.
  • Any claim for refund relating to balance in the electronic cash ledger may also be made through the return furnished for the relevant tax period in FORM GSTR-3 or FORM GSTR-4 or FORM GSTR-7
  • In case of export of goods, application for refund shall be filed only after the export manifest or an export report is delivered in respect of such goods.
  • In respect of supplies to a Special Economic Zone unit or a Special Economic Zone developer, the application for refund shall be filed by the supplier of goods
  • Provided also that refund of any amount, after adjusting the tax payable by the applicant out of the advance tax deposited by him under section 27 at the time of registration, shall be claimed in the last return required to be furnished by him.
  • The application shall be accompanied by required documentary evidences, as applicable, to establish that a refund is due to the applicant:
  • 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.
  • In case of zero-rated supply of goods or services or both without payment of tax under bond or letter of undertaking in accordance with the provisions of the act.
  • In case of refund on account of inverted duty structure, refund of input tax credit shall be granted as per the following formula:

Maximum Refund Amount = {(Turnover of inverted rated supply of goods) x Net ITC ÷ Adjusted Total Turnover} minus tax payable on such inverted rated supply of goods

Rule 90:-

  • Where the application relates to a claim for refund from the electronic cash ledger, an acknowledgement in FORM GST RFD-02 shall be made available to the applicant through the Common Portal electronically, clearly indicating the date of filing of the claim for refund and the time period specified.
  • The application for refund, other than claim for refund from electronic cash ledger, shall be forwarded to the proper officer who shall, within fifteen days of filing of the said application.
  • Where the claim for refund of integrated tax is on account of export of goods, the acknowledgment shall be issued within a period of three days of filing of such claim.
  • Where any deficiencies are noticed, the proper officer shall communicate the deficiencies to the applicant in FORM GST RFD-03 through the Common Portal electronically.

Rule 91:-

  • The provisional refund shall be granted subject to the condition that the person claiming refund has, during any period of five years immediately preceding the tax period to which the claim for refund relates but the person has not been prosecuted for any offence under the Act or under an existing law where the amount of tax evaded exceeds two hundred and fifty lakh rupees
  • The proper officer after checking the conditions of the claim and the evidence submitted in support of the refund than if he satisfied that the amount claimed as refund is due to the applicant ,he shall make an order of provisional refund in FORM GST RFD-04 within a period not exceeding seven days from the date of acknowledgement
  • The proper officer shall issue a payment advice in FORM GST RFD-05 for the amount sanctioned and the same shall be electronically credited to any of the bank accounts of the applicant mentioned in his registration particulars.

Rule 92:-

  • Where during the examination of the application, the proper officer is satisfied that refund is due and payable to the applicant, he shall make an order in FORM GST RFD-06.
  • In cases where the amount of refund is completely adjusted against any outstanding demand under the Act or under any existing law, an order giving details of the adjustment shall be issued in Part A of FORM GST RFD-07.
  • Where the proper officer or the Commissioner is of the opinion that the amount of refund is liable to be withheld he shall pass an order in Part B of FORM GST RFD-07.
  • Where the proper officer is satisfied, for reasons to be recorded in writing, that the whole or any part of the amount claimed as refund is not admissible or is not payable to the applicant, he shall issue a notice in FORM GST RFD-08 to the applicant, requiring him to furnish a reply in FORM GST RFD-09 within fifteen days of the receipt of such notice and after considering the reply, make an order in FORM GST RFD-06, sanctioning the amount of refund claimed and the said order shall be made available to the applicant electronically .
  • Provided that no application for refund shall be rejected without giving the applicant a reasonable opportunity of being heard
  • Where the proper officer is satisfied that the amount refundable is not payable to the applicant he shall make an order in FORM GST RFD-06 and issue an advice in FORM GST RFD-05, for the amount of refund to be credited to the Consumer Welfare Fund.

Rule 93:-

  • Where any deficiencies have been communicated under, the amount debited shall be re-credited to the electronic credit ledger.
  • Where any amount claimed as refund is rejected the amount debited, to the extent of rejection, shall be re-credited to the electronic credit ledger by an order made in FORM GST PMT-03.

Rule 94:-

  • Where any interest is due and payable to the applicant under section 56, the proper officer shall make an order along with a payment advice in FORM GST RFD-05.
  • The period of delay for which interest are payable and the amount of interest payable, and such amount of interest shall be electronically credited to any of the bank accounts of the applicant mentioned in his registration particulars.

Rule 95:-

  • Any person eligible to claim refund of tax paid by him on his inward supplies shall apply for refund in FORM GST RFD-10 once in every quarter, electronically on the Common Portal, along with a statement of inward supplies of goods or services or both in FORM GSTR-11, prepared on the basis of statement of outward supplies furnished by corresponding suppliers in FORM GSTR-1
  • An acknowledgement for receipt of the application for refund shall be issued in FORM GST RFD-02.

Rule 96:-

  • The shipping bill filed by an exporter shall be deemed to be an application for refund of integrated tax paid on the goods exported out of India and such application shall be deemed to have been filed
  • The details of the relevant export invoices contained in FORM GSTR-1 shall be transmitted electronically by the common portal to the system
  • Upon the receipt of the information regarding the furnishing of a valid return in FORM GSTR- 3 from the common portal
  • The claim for refund shall be withheld where the request has been received from the jurisdictional Commissioner of central tax, State tax or Union territory tax to withhold the payment of refund due to the person claiming refund
  • The proper officer of integrated tax at the Customs station shall intimate the applicant and the jurisdictional Commissioner of central tax, State tax or Union territory tax, as the case may be, and a copy of such intimation shall be transmitted to the common portal.
  • Upon transmission of the intimation the proper officer of central tax or State tax or Union territory tax, as the case may be, shall pass an order in Part B of FORM GST RFD-07.

Rule 97:-

  • All credits to the Consumer Welfare Fund shall be made under sub-rule (4) of rule 4.
  • Any amount has been credited to the Fund by orders of the proper officer, appellate authority or Appellate Tribunal or court, shall be paid from the Fund.
  • Any utilization of amount from the Consumer Welfare Fund shall be made by debiting the Consumer Welfare Fund account and crediting the account to which the amount is transferred for utilization.
  • The Government shall constitute a Standing Committee with required number of members and the Committee shall make recommendations for proper utilization of the money credited to the Consumer Welfare Fund for welfare of the consumers. proper utilization of the grant
  • The Central Consumer Protection Council and the Bureau of Indian Standards shall recommend to the GST Council, the broad guidelines for considering the projects or proposals for the purpose of incurring expenditure from the Consumer Welfare Fund.

The author is a practicing company secretary expert in handing all the company matters legal or otherwise and he can also be reached at vinayak.charu@gmail.com

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