GST is a destination based consumption tax where in the levy of tax moves along with goods and /or services. GST Refund” is defined under Model GST Law as refund of tax on goods / services exported out of India or on inputs or input services used in the goods / or services which are exported out of India, or refund of tax on supply of goods regarded as “deemed Exports’ or refund of unutilized input tax credit. In simple terms where a goods exporter is not in position to utilize the GST paid in inputs such as raw material , inputs etc. which are used for export of goods shall apply for refund of GST paid by goods exporter. By taking GST Refund Exporter of Goods can increase its business working capital.
When Goods exporter is not in a positions to utilize the input GST credit due to export of gods in that case person can apply for refund of GST to government department.
Under the provisions of GST refund application need to be make to proper officer with the relevant date as specified. Beyond relevant period GST refund applicable become time bard.
Net Input Tax Credit” means input tax credit availed on inputs and input services during the relevant period like in that quarter.
Eligible Person shall apply for refund in Form GST RFD 10 on quarterly basis by using GST electronica mode as available on common portal.
For making GST refund claim application various documents required such as electronic credit register, export invoices, Shipping Bill, Annexure 2 certified by CA , other supporting.
The proper officer after scrutiny of the claim and evidences submitted in supporting to claim application shall make refund order in Form GST RFD-04 provisional
Yes. ITC credit allowed as refund subject to GST Law.
Before expiry of two years application shall be made for GST department online and off line
within 60 days from the date of receipt of application department shall sanction refund claim. For delay of sanction beyond 60 days interest at 6 % swill have to be paid 56 of the CGST/SGST Act.
No refund shall be granted if the amount is less than Rs.1000/-
Yes. For zero rated supplies of goods or services or both (other than registered persons as may be notified), 90% refund be allowed on provisional basis subject to such conditions and restrictions.
Yes. For refund application on account of goods / service export BRC document is required.
Every claim of refund has to be filed in Form GST RFD 1.
No. Proper officer need to issue notice before rejection of claim.