REFUND OF Electronic Credit Ledger

Section 54(3) deals with refund of balance lying in ECL (Electronic Credit Ledger). Refund of unutilized ITC credit will be allowed under following cases only:

Zero rated supplies:

Export of goods and services under bond or Letter of undertaking (LUT), without payment of IGST

Supply of goods or services or both to SEZ developer or a SEZ unit.

Inverted duty structure (i.e rate of GST on Inputs are higher than that on output) (other than nil rated or fully exempt supplies), (excluding notified supplies for which unutilized ITC is not allowed)

Yes… refund on an Electronic credit larger is applied on form RFD-01 on GST portal.

Following cases you can apply for refund:

1. Export of good or service under Letter of Undertaking (LUT)
2. Supply to Special Economic Zone (SEZ)
3. Goods/Servies Purchase rate of GST is more than Sales Rate of GST

You require so many documents at time of cliam refund :

1. Cover latter
2. Authority latter
3. Undertaking & Declaration letter
4. Copy of online filled RFD - 01
5. Copy of online filled GSTR 3B
6. Copy of online filled GSTR 1
7. Statement 3A ( related to Sale/Export )
8. Copy of LUT
9. All Purchase Invoice which credit claim in RFD-01
10. All Sales Invoice of related month
11. One Cancelled Cheque (for transfer refund amount on particular account)

Refund claim from ECL can be permitted as the condition prescribed in section 54 of CGST Act .

Note : Now purchase invoice not be submitted manually , infact the invoice which are not autopopulated in GSTR 2A need to be digitally uploaded.

You may refer Circular 125/44/2019 GST f

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How to claim input credit

Refer Circular 125/44/2019 GST