FORM-RED-11

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This query is : Resolved

Ramaswamy Thiyagarajan (Querist)

08 May 2025 Respected Experts,
I am a part time employee in an organisation who are providing Services related to Information Technology. They had done export of service to their clients in Colombo in the FY 2021-22 operating from India for a value of around Rs.20lakhs_zero percentage GST. They didn't know the GST Laws and the requirement to furnish RFD-11. They hadn't furnished RFD-11. They filed GST Returns in GSTR-1 and GSTR-3B. Now they have received a notice from GST Authorities to pay IGST 18% and Interest 18%. But for this fault their transactions were genuine. They have the Bank Realization Certificates. They have Tax Payment Certificates from Colombo under DTAA. Please kindly clarify me whether GST Officers after receipt of their explanations and request to condone, would condone their fault of not furnishing RFD-11 while other records were clean.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

12 August 2025 Regarding your query on FORM RFD-11 for export of services with zero-rated GST and non-filing issues, here is a detailed explanation and guidance:

Background:
Export of services is treated as zero-rated supply under GST.

To claim refund of IGST or input tax credit on exports, FORM RFD-11 must be filed.

Failure to file RFD-11 might lead to demand notices for IGST and interest.

Key Points:
Zero-Rated Supply & Refund Claim:

Exporter must file RFD-11 to claim refund of IGST paid or ITC used on zero-rated supplies.

Filing GSTR-1 and GSTR-3B alone does not replace the refund claim procedure.

Failure to File RFD-11:

GST authorities may issue demand notices for IGST + interest, assuming tax not paid or credit wrongly claimed.

However, if exports are genuine and supported by Bank Realization Certificates (BRC) and other documents, the liability is only procedural.

Request for Condonation of Delay:

GST law allows for condonation of delay in procedural compliance on a case-by-case basis.

The company can submit a written explanation along with documentary evidence (BRC, invoices, DTAA certificates).

The authorities usually consider the genuineness of export and clean compliance record while deciding.

Interest and Penalty:

Interest may still be payable for the delay in filing.

Penalty may be waived or reduced if the exporter can prove bona fide mistake and cooperate with authorities.

Recommended Actions:
File the Pending RFD-11 Immediately:

Even if delayed, file the refund claim to regularize your position.

Prepare a Detailed Explanation:

Explain the procedural lapse was unintentional.

Attach all supporting documents like BRC, export invoices, proof of receipt of foreign exchange, and DTAA certificates.

Request for Waiver or Reduction of Interest and Penalty:

Request condonation of delay citing genuine exports and cooperation.

Legal Provisions to Refer:

Section 54(3) of CGST Act (refund claim process)

Rule 89(5) of CGST Rules (time limit for filing refund claim)

Section 50 (Interest) and Section 74 (Penalty) of CGST Act

Engage a Tax Expert:

To draft a proper representation and follow up with the GST officer.

Likely Outcome:
Since the export transactions are genuine and supported by valid documents, the authorities may condone the non-filing fault.

They may still charge interest for delay, but penalties might be waived if the explanation is accepted.

Early cooperation and compliance filing strengthen your case.

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