When the Goods and Services Tax or GST came into the origin, it also brought into place multiple systems and mechanisms for refunds. After that, multiple refund claims have been filed by taxpayers and a standardized form has been introduced. GST Refund is a process in which registered taxpayers can claim excess amount if any paid more than the GST Liability.
The cash flow and working capital requirements of manufacturers and exporters could be adversely affected if a refund is delayed. As a result, one of the intentions of the implementation of GST is to ensure that the refund process is smoother so that manufacturers and exporters do not face issues due to delays. By ensuring that the refund process is facilitated quickly, tax administration becomes more effective.
The GST regime has provisions relating to refunds, and it aims at streamlining and standardizing the procedures about refunds under GST. Therefore, a standardized form has been created to make claims for refunds. The procedure for making claims can be completed online on time.
Refund of IGST in export can be claimed only by reporting it in GSTR-1 and GSTR-3B. Refund of cash paid in excess of electronic cash ledger can be claimed by applying in form RFD-01.
Visit the GSTN portal and fill in the application form meant for claiming refund.
You will receive an email or SMS which contains an acknowledgment number after the filing of application is done electronically.
The cash and return ledger will be adjusted and the "carry-forward input tax credit" will be reduced automatically.
The application for refund along with the documents you have submitted will be scrutinised by the authorities with a 30-day period after you have filed the refund application.
In case the refund claimed by the individual in excess of the predetermined amount of refund, a pre-audit process will be conducted before the refund is sanctioned.
The credit of the refund will be done electronically to the applicant’s account through NEFT, RTGS or ECS.
In case the amount of refund is below Rs.1000, no refund will be provided to the individual.
Unutilized input tax credit can be allowed as refund in accordance with the provisions of sub-section (3) of section 54 in the following situations: - (i) Zero rated supplies made without payment of tax; (ii) Where credit has accumulated on account of rate of tax on inputs being higher than the rate of taxes on output supplies (other than nil rated or fully exempt supplies).
Refund of unutilized input tax credit is not allowed in cases where the goods exported out of India are subjected to export duty-as per the second proviso to Section 54(3) of CGST/SGST Act.
No refund shall be granted if the amount is less than Rs.1000/-. [Sec.54 (14) of the CGST/SGST Act].
Deficiencies, if any, in the refund claim has to be pointed out within 15 days. A form GST RFD-03 will be issued by the proper officer to the applicant pointing out the deficiencies through the common portal electronically requiring him to file a refund application after rectification of such deficiencies.
A person claiming refund is required to file an application before the expiry of two years from the “relevant date “as given in the Explanation to section 54 of the CGST/SGST Act.
Quick response to any query. Excellent services and Extremely polite and professional staff.
Abhishek Taliya, 3Tee Elastic Private Limited
Best in business in their respective fields
Shreyansh Kothari, K Lal
Great service by Team of Finaccle. Their execution method is amazing. Would love to continue with them in future!
Abhishek Gotawala, Harikanta Overseas Private limited
It's good to work with Finaccle's Advisors. Perfect and Reliable.
Mr. Sharma, Ganesh Weaving