Refund Under GST

1. REFUND UNDER GST by

2. Refund under GST • “Refund” includes refund of tax paid on zero-rated supplies of goods or services or both or on inputs or input services used in making such zero-rated supplies, or refund of tax on the supply of goods regarded as deemed exports, or refund of unutilized ITC. No refund will be given if the amount is less than Rs.1000/-

3. Cases where refund is allowed

4. Cases where refund is not allowed • In case of goods or services which are notified by council in this behalf. • Refund of unutilized input tax credit in where the goods exported out of India are subjected to export duty. • Refund of unutilized input tax credit if the supplier of goods or services or both avails of drawback in respect of central tax or claims refund of the integrated tax paid on such supplies. EXPLANATION:In relation to any goods manufactured in India and exported, means the rebate of duty, tax or cess chargeable on any imported inputs or on any domestic inputs or input services used in the manufacture of such goods.

5. Documents required for Refund Application : Normal Case • A statement in Annex 1 of FORM GST RFD-01 containing the no. and date of invoices received and issued in a case where the claim pertains to refund of any unutilized ITC where the credit has accumulated due to rate of tax on inputs being higher than the rate of tax on output supplies, • The reference number of the final assessment order and a copy of the said order in a case where the refund arises on account of finalization of provisional assessment; • A declaration to the effect that the incidence of tax, interest or any other amount claimed as refund has not been passed on to any other person, in a case where the amount of refund claimed does not exceed Rs. 2 lakh. • A Certificate in Annex 2 of FORM GST RFD-01 issued by a CA or a Cost Accountant which says that the incidence of tax, interest or any other amount claimed as refund has not been passed on to any other person, in a case where the amount of refund claimed exceeds Rs. 2 Lakh.

6. Documents required for Refund Application : Other Cases • In case of officer / court order • The reference number of the order and a copy of the order passed by the officer , court etc resulting in such refund • Reference number of the payment of the amount claimed as refund; • In case of Exports • A statement containing the number and date of shipping bills or bills of export and the number and date of relevant export invoices, in a case where the refund is on account of export of goods; • A statement containing the number and date of invoices and the relevant Bank Realization Certificates or Foreign Inward Remittance Certificates, in a case where the refund is on account of export of services. • A statement containing the number and date of invoices along with such other notified evidence, in a case where the refund is due to deemed exports; • In a case of supplies made to SEZ Unit/Developer: • A statement containing the number and date of invoices as required in a tax invoice along with the evidence. • A statement containing the number and date of invoices, the evidence and the details of payment, along with proof thereof, made by the recipient to the supplier for authorized operations as defined under the Special Economic Zone Act, 2005

7. When is the Refund actually Realised? The Refundable Amount instead of being credited to the Fund, be paid to the applicant, if such amount is relatable to—

8. Refund in case of Zero-rated supply • In case of zero-rated supply without payment of tax under bond or letter of undertaking under IGST Act, refund of input tax credit shall be granted as per the following formula: • Refund Amount:-

9. Calculation of Zero-Rated Supply of services • Zero-rated supply of services made without payment of tax under bond or letter of undertaking is calculated in the following manner:

10. Refund of tax to UN Related persons

11. UN Related Persons • A specialized agency of the United Nations Organisation or • International Civil Aviation Organisation. • World Health Organisation(WHO) • International Labour Organisation(ILO) • Food and Agriculture Organisation of the United Nations. • United Nations Educational, Scientific and Cultural Organisation. • International Monetary Fund. • International Bank of Reconstruction and Development. • Universal Postal Union. • International Telecommunication Union. • World Meteorological Organisation. • Permanent Central Opium Board. • International Hydrographic Bureau • or any Consulate or Embassy of foreign countries or any other notified person or class of persons, will be entitled to a refund of tax paid by it on inward supplies, may make an application for such refund, within 6 months from the last day of the quarter in which such supply was received.

12. When is refund of tax available to UN related person?

13. Interest on Delayed Refunds

14. Order sanctioning interest on delayed refunds

15. Grant of provisional refund

16. Credit of the amount of rejected refund claim

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