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Reimbursements

GST Refunds

Documents Required
Eligible person for claiming refunds
Eligible period for claiming refunds
Procedure for claiming refunds

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Goods & Services Tax

GST Refunds

1Eligible Persons 2Eligible Period 3Procedure for Claiming
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When can a GST Refund be claimed?

Usually when the GST paid is more than the GST liability, the such excess amount has to be claimed as GST Refund. The government has made many rules and regulations as regards to GST Refunds of balance available in electronic cash ledger account and Credit ledger account.

Refund can be claimed from electronic cash ledger account and Credit ledger account in the following cases:
  1. 1Excess payment of tax is made due to mistake or omission — e.g. inadvertently excess tax paid than required, or tax paid as IGST instead of CGST / SGST or vice versa.
  2. 2Dealer exports (including deemed export) goods / services under claim of rebate or Refund.
  3. 3ITC accumulation due to output being tax exempt or nil-rated.
  4. 4Refund of tax paid on purchases made by Embassies or UN bodies.
  5. 5Tax Refund for International Tourists.
  6. 6Finalization of provisional assessment.
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Eligibility Criteria for Unutilized ITC Refund

Eligible Persons
  1. Exporter of Goods / Services
  2. Supply to SEZ unit or Developer
  3. Rate of tax on Inputs > rate of tax on outputs (other than nil rated or fully exempt)
Non-Eligible Persons
  1. If supplier avails drawback in respect of CGST or claims refund of IGST
  2. Goods exported out of India were subjected to export duty
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Eligible Period for Claiming Refund

Refund can be claimed within 2 years from the relevant date (which differs from case to case). Relevant dates for major cases are mentioned below:
Reason for Claiming GST Refund Relevant Date
Excess payment of GST Date of payment
Export or deemed export of goods or services Date of dispatch / loading / passing the frontier
ITC accumulates as output is tax exempt or nil-rated Last date of financial year to which the credit belongs
Finalization of provisional assessment Date on which tax is adjusted
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Procedure for Claiming Refund

1
Refund Application in Form GST RFD-01 / RFD-10 (Embassies) will be filed at the common portal along with Statement of inward supplies of goods/services by embassies in Form GST RFD-11 and other evidences establishing that the amount of tax and interest is refundable. Acknowledgment will be issued in Form GST RFD-02.
Note: If refund amount is less than ₹2 lakhs, only a declaration for the above will serve the purpose.
2
Deficiencies in the application will be communicated in Form GST RFD-03, if any — otherwise Provisional Order for refund amount / Payment advice will be issued in Form GST RFD-04 / RFD-05.
3
Notice will be issued if Refund is not acceptable in Form GST RFD-08.
4
Reply to the notice has to be submitted in Form GST RFD-09.
5
Final Order for sanctioning Refund will be issued in Form GST RFD-06 along with order for adjustment of outstanding demands (if any) with refunds in Form GST RFD-07.
The refund shall be granted within 60 days from the date of receipt of complete application. Interest is payable on delayed payment.