In India, the government is authorized to collect taxes from persons through process authorized by law. If the person has paid the taxes that were above the amount that was due, then the government is under an obligation to reimburse it. This process of reimbursement is known as refund. In this article, we will talk about GST Refunds.
Under the GST laws, not every person is entitled to claim GST refunds. In order to claim these refunds, they have to meet out certain conditions. The refund is initiated only if the amount of tax, interest, cess, penalty, or any other amount paid to the government was either more than the prescribed amount or extra tax was paid which was not leviable.
Who can claim GST Refund?
Any person can claim the GST refund i e for claiming the GST refund irrespective of the fact whether that person is a registered person or unregistered person as stated in section 54(1).
Also Read: Qualifications for GST Registration
Cases where GST Refund can be claimed?
- Export of Goods or services
- Supplies to SEZs units and developers
- Deemed Export supplies
- Refund of taxes on purchase made by UN or embassies etc
- Refund arising on account of judgment, decree, order or direction of the Appellate Authority, Appellate Tribunal or any court
- Refund of accumulated Input Tax Credit on account of inverted duty structure
- Finalisation of provisional assessment
- Refund of pre-deposit
- Excess payment due to mistake
- Refunds to International tourists of GST paid on goods in India and carried abroad at the time of their departure from India
- Refund on account of issuance of refund vouchers for taxes paid on advances against which goods or services have not been supplied
- Refund of CGST & SGST paid by treating the supply as intra-State supply which is subsequently held as inter-State supply and vice versa.
Time limit to claim GST Refund
The GST law requires that every claim for refund is to be filed within 2 years from the relevant date.
| 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 |
Documents required for GST Refunds
| Sl. No. | Type of Refund | Declaration / Statement / Undertaking / Certificates to be filled online | Supporting documents to be additionally uploaded |
|---|---|---|---|
| 1. | Refund of Unutilized ITC- exports without payment of tax |
1. Declaration under second and third proviso to section 54(3) 2. Undertaking in relation to sections 16(2)(c) and section 42(2) 3. Statement 3 under rule 89(2)(b) and rule 89(2)(c) 4. Statement 3A under rule 89(4) |
1. Copy of GSTR-2A of the relevant period 2. Statement of invoices (Annexure-B) 3. GSTR-2A of the relevant period 4. BRC/FIRC in case of export of services and shipping bill (only in case of exports made through non-EDI ports) in case of goods |
| 2. | Refund of tax paid on export: Export of services with payment of tax |
1. Declaration under second and third proviso to section 54(3) 2. Undertaking in relation to sections 16(2)(c) and section 42(2) 3. Statement 2 under rule 89(2)(c) |
1. BRC/FIRC/any other document indicating the receipt of sale proceeds of services 2. Copy of GSTR-2A of the relevant Period 3. Statement of invoices (Annexure-B) |
| 3. | Refund of unutilized ITC: Supplies made to SEZ units/developer without payment of tax |
1. Declaration under third proviso to section 54(3) 2. Statement 5 under rule 89(2)(d) and rule 89(2)(e) 3. Statement 5A under rule 89(4) 4. Declaration under rule 89(2)(f) |
1. Copy of GSTR-2A of the relevant Period 2. Statement of invoices (Annexure-B) 3. Self-certified copies of invoices 4. Endorsement(s) from the specified officer of the SEZ regarding receipt of goods/services for authorized operations under second proviso to rule 89(1) |
| 4. | Refund of tax paid on supplies made to SEZ units/developer with payment of tax | 1. Declaration under second and third proviso to section 54(3) 2. Declaration under rule 89(2)(f) 3. Statement 4 under rule 89(2)(d) and rule 89(2)(e) | 1. Endorsement(s) from the specified officer of the SEZ regarding receipt of goods/services for authorized operations under second proviso to rule 89(1) 2. Self-declaration regarding non-prosecution under sub-rule (1) of rule 91 of the CGST Rules for availing Provisional Refund |
| 5. | Refund of ITC unutilized on account of inverted tax structure |
1. Declaration under second and third proviso to section 54(3) 2. Declaration under section 54(3)(ii) 3. Undertaking in relation to sections 16(2)(c) and section 42(2) 4. Statement 1 under rule 89(5) |
1. Copy of GSTR-2A of the relevant Period 2. Statement of invoices (Annexure-B) |
| 6. | Deemed export: Refund to the supplier of tax paid |
1. Statement 5(B) under rule 89(2)(g) 2. Declaration under rule 89(2)(g) 3. Undertaking in relation to sections 16(2)(c) and section 42(2) 4. Self-declaration under rule 89(2)(1) if amount claimed does not exceed two lakh rupees, certification under rule 89(2)(m) otherwise |
Documents required under Notification No. 49/2017-Central Tax dated 18.10.2017 and Circular No. 14/14/2017-GST dated 06.11.2017 |
| 7. | Refund to recipient of tax paid on deemed export supplies |
1. Statement 5(B) under rule 89(2)(g) 2. Declaration under rule 89(2)(g) 3. Undertaking in relation to sections 16(2)(c) and section 42(2) 4. Self-declaration under rule 89(2)(1) if amount claimed does not exceed two lakh rupees, certification under rule 89(2)(m) otherwise |
Documents required under Circular No. 14/14/2017-GST dated 06.11.2017 |
| 8. | Refund of excess payment of tax |
1. Statement 7 under rule 89(2)(k) 2. Undertaking in relation to sections 16(2)(c) and section 42(2) 3. Self-declaration under rule 89(2)(1) if amount claimed does not exceed two lakh rupees, certification under rule 89(2)(m) otherwise |
Documents required under Circular No. 14/14/2017-GST dated 06.11.2017 |
| 9. | Refund of tax paid on intra-state supply which is Subsequently held to be an inter-state supply and vice Versa. |
1. Statement 6 under rule 89(2)(j) 2. Undertaking in relation to sections 16(2)(c) and section 42(2) |
Documents required under Circular No. 14/14/2017-GST dated 06.11.2017 |
| 10. | Refund on account of assessment/assess ment/appeal/ any other order |
1. Undertaking in relation to sections 16(2)(c) and section 42(2) 2. Self-declaration under rule 89(2)(1) if amount claimed does not exceed two lakh rupees, certification under rule 89(2)(m) otherwise |
1. Reference number of the order and a copy of the Assessment/Provisional Assessment/Appeal/Any Other Order 2. Reference number/proof of payment of pre-deposit made earlier for which refund is being claimed |
| 11.Any other ground of refund |
1. Undertaking in relation to sections 16(2)(c) and section 42(2) 2. Self-declaration under rule 89(2)(1) if amount claimed does not exceed two lakh rupees, certification under rule 89(2)(m) otherwise |
Documents in support of the claim |
Note
As per circular no. 125/44/2019-GST dated 18th November, 2019, GST Refund process is fully digitalized & the necessary capabilities for making the refund procedure is fully electronic, in which all steps of submission and processing shall be undertaken electronically, have been deployed on the GST Portal.
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