GST Refund Procedure

A taxpayer can claim refund in 3 cases :

  • Zero rate supplies
  • On inputs and input services used in making zero rate supply
  • On supply regarded as deemed export
  • Unutilized ITC in case of inverted tax structure

The above refund can be claimed only if burden of GST in not transferred i.e. subject to unjust enrichment.

Refund can be claimed in fallowing cases :

  • Export of goods or services
  • Zero rated supplies
  • Inverted duty structure
  • Deemed export
  • Refund of cash balance of e-cash ledger
  • Refund on issuance of refund voucher
  • Refund to tourist
  • Refund on account of court order and final assessment.
  • Refund to UN bodies
  • Refund to CTP & NRTP for excess payment of tax.

Time limit for claiming refund :

Application should be made before expiry of 2 years from relevant date. However for few specified entities and authorities the time limit may vary. However refund can be availed only if the refund amount is 1000 or more for each tax head separately (CGST or SGST or IGST). Interest on delayed refund can also be claimed.

In fallowing cases refund can be withheld :

  1. Where refund is on account of zero rate supplies, or inverted duty structure and the taxpayer has defaulted in furnishing return or who is required to pay tax, interest or penalty which has not been stayed by any authority.
  2. Where any refund order is subject matter to further appeal and the commissioner is of the opinion the grant of refund will adversely affect interest of revenue.

Documents required :

  1. Documentary evidence to prove that there is no unjust enrichment.
  2. If refund claim is more than or equal to 2 lakh than a certificate from Chartered Accountant is required.However not required in few specified cases.
  3. Difference documents will also be required in different cases of refund.