Refund of Output ,IGST,SGST, CGST RCM
This query is : Resolved
18 September 2025
Our company is under the output tax liability of zero rated to domestic and also export sales . And our products are come under Animal Nutrition. And we have output tax liability of Rcm. If there is any chance for refund this output tax liability of RCM
18 September 2025
RCM paid on services or goods used in making zero-rated or export supplies may be claimed as refund as part of the overall ITC, but only for the portion used in zero-rated activities and subject to compliance with all refund claim requirements.
Goods or services must not fall within the categories that restrict refund of ITC on exports (some items are notified as non-refundable); this rarely applies to animal nutrition but must be checked as per the current legal notifications.
Refund claims are generally not allowed for output tax that arises solely under RCM unless it is first claimed as ITC and is unutilized due to zero-rated supplies.
Goods or services must not fall within the categories that restrict refund of ITC on exports (some items are notified as non-refundable); this rarely applies to animal nutrition but must be checked as per the current legal notifications.
Refund claims are generally not allowed for output tax that arises solely under RCM unless it is first claimed as ITC and is unutilized due to zero-rated supplies.
18 September 2025
File a Letter of Undertaking (LUT) for export without payment of IGST, or pay IGST and then claim the refund.
Refund application should include turnover, ITC accumulated (including RCM), and satisfy documentary requirements as specified in GST rules.
In short, ITC availed on RCM paid is refundable if it is used to make zero-rated/domestic or export sales, as long as all procedural and legal conditions are met.
Refund application should include turnover, ITC accumulated (including RCM), and satisfy documentary requirements as specified in GST rules.
In short, ITC availed on RCM paid is refundable if it is used to make zero-rated/domestic or export sales, as long as all procedural and legal conditions are met.
18 September 2025
To claim a GST refund for output tax paid under the Reverse Charge Mechanism (RCM) that has been credited as input tax and used for zero-rated supplies or exports, the following procedures must be followed:
Step-by-Step Refund Process
Log in to the GST portal and navigate to ‘Services’ > ‘Refunds’ > ‘Application for refund’.
Fill the ‘Refund pre-application form’ and submit it with business and refund details.
Select the refund category for “Unutilized input tax credit (ITC) on account of exports/zero-rated supply” and create the refund application.
Enter period details and specify turnover, tax paid, and ITC availed—including that paid under RCM.
Attach required documents: invoices, returns (GSTR-1, GSTR-3B), shipping bills (for exports), proof of payment, electronic credit ledger, and bank account details.
If the claim exceeds ₹2 lakh, attach a certificate from a Chartered Accountant or Cost Accountant certifying that tax incidence has not been passed on.
Review and preview your application, then submit it with electronic verification code (EVC) or Digital Signature Certificate (DSC).
Upon submission, an Application Reference Number (ARN) is generated. Use it to track refund status on the GST portal.
Any deficiencies will be notified by the tax officer within 15 days. Resolve them if needed and refile the application as a fresh claim.
Once verified and approved, the refund is credited to the registered bank account.
Step-by-Step Refund Process
Log in to the GST portal and navigate to ‘Services’ > ‘Refunds’ > ‘Application for refund’.
Fill the ‘Refund pre-application form’ and submit it with business and refund details.
Select the refund category for “Unutilized input tax credit (ITC) on account of exports/zero-rated supply” and create the refund application.
Enter period details and specify turnover, tax paid, and ITC availed—including that paid under RCM.
Attach required documents: invoices, returns (GSTR-1, GSTR-3B), shipping bills (for exports), proof of payment, electronic credit ledger, and bank account details.
If the claim exceeds ₹2 lakh, attach a certificate from a Chartered Accountant or Cost Accountant certifying that tax incidence has not been passed on.
Review and preview your application, then submit it with electronic verification code (EVC) or Digital Signature Certificate (DSC).
Upon submission, an Application Reference Number (ARN) is generated. Use it to track refund status on the GST portal.
Any deficiencies will be notified by the tax officer within 15 days. Resolve them if needed and refile the application as a fresh claim.
Once verified and approved, the refund is credited to the registered bank account.
18 September 2025
Required Documents
Copy of invoices for inward and outward supplies
GSTR-1 and GSTR-3B returns for the claim period
Shipping bills or export documentation (where applicable)
Proof of RCM tax payment (self-invoice and payment challan)
Electronic credit ledger copy
Chartered Accountant certificate (for claims above ₹2 lakh)
Declaration/undertakings as prescribed.
Copy of invoices for inward and outward supplies
GSTR-1 and GSTR-3B returns for the claim period
Shipping bills or export documentation (where applicable)
Proof of RCM tax payment (self-invoice and payment challan)
Electronic credit ledger copy
Chartered Accountant certificate (for claims above ₹2 lakh)
Declaration/undertakings as prescribed.
18 September 2025
The refund application under RFD-01 must be made within two years from the relevant date—generally, from the date of payment of tax or export.
Provisional refund (up to 90%) may be granted to exporters within 7 days, subject to document verification.
A well-documented application and prompt responses to queries from the tax office are crucial for a smooth and timely refund process.
Provisional refund (up to 90%) may be granted to exporters within 7 days, subject to document verification.
A well-documented application and prompt responses to queries from the tax office are crucial for a smooth and timely refund process.
18 September 2025
Thank You Sir for the valuable comments
18 September 2025
You are welcome.
19 September 2025
Good Luck...
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