Q.1 When can the refund be claimed?
There
are many cases where a refund can be claimed. Here are some of them.
Excess
payment of tax is made due to a mistake or omission.
- Dealer
Exports (including deemed export) goods/services under claim of rebate or
Refund.
- ITC
accumulation due to output being tax-exempt or nil-rated.
- Refund
of tax paid on purchases made by Embassies or UN bodies.
- Tax
Refund for International Tourists.
- Finalization
of provisional assessment.
Q.2 How to calculate GST refund?
Let’s
take a simple case of excess tax payments made.
Mr.
Gupta's GST liability for the month of September is Rs.50000. But due to a mistake, Mr. Gupta made a GST payment of Rs.5 lakh.
Now
Mr. Gupta has made an excess GST payment of Rs.4.5 lakh which can be claimed as
a refund by him. The time limit for claiming the refund is 2 years.
Q.3 What is the time limit for claiming the refund?
The
time limit for claiming a refund is 2 years from the relevant date.
The
relevant date is different in every case. Here are the relevant dates for some
cases-
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
|
Finalisation of provisional assessment
|
Date on which tax is adjusted
|
Q.4 How to claim GST refund?
The refund
application has to be made in Form RFD 01 within 2 years from relevant
date.
The
form should also be certified by a Chartered Accountant.