GST Refund & process to claim it

GST Refund & process to claim it

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.
  1. Dealer Exports (including deemed export) goods/services under claim of rebate or Refund.
  2. ITC accumulation due to output being tax-exempt or nil-rated.
  3. Refund of tax paid on purchases made by Embassies or UN bodies.
  4. Tax Refund for International Tourists.
  5. 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.



For more information on this visit https://www.taxaj.com/

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