To request a GST refund, the taxpayer must submit the necessary paperwork and declarations to the GST authorities. The electronic cash ledger’s excess cash balance, unintentionally paid taxes, and accumulated Input Tax Credits (ITC) that cannot be applied to tax payments because of zero-rated sales or an inverted tax structure are examples of places where GST refunds may be made. The forms used to claim a GST refund differ depending on the type sought.
Taxpayers must fill out a form with details about their company, Aadhaar number, income tax information, export data, expenses and investment information, etc. Taxpayers must submit a pre-application for all types of GST refunds. No signature is required, and the form cannot be changed once submitted. As a result, the user must exercise caution when entering the information.
There are two steps to the pre-application form:
Log in to the GST portal, navigate to the ‘Services’ tab, then to ‘Refunds,’ and then to the ‘Refund pre-application form.’
Fill in the details requested on the ‘Refund pre-application form’ page and click ‘Submit.’ A submission confirmation message will appear on the screen.
The following details are to be mentioned:
Exports are categorized as “zero-rated supplies” under the GST. As a result, the exporter is qualified for a tax refund (IGST and any cess, if any).
Because the volume of transactions in exporters can be large, the GST portal simplifies the GST refund process. In this case, no separate application in form RFD-01 is required.
For a GST refund, the exporter must meet certain conditions:
RFD-01 should be submitted for the following kinds of GST refund claims:
*It is critical to declare consistent invoice information in both GSTR-1, where applicable, and RFD-01. A certificate from a chartered accountant or cost accountant may occasionally be required.
Applying for a refund in RFD-01 requires the completion of the steps listed below:
Log in to the GST portal, select the ‘Services’ tab, then ‘Refunds,’ and finally, the ‘Application of refund’ option.
Select the reason for the refund or the type of refund, and then click ‘Create refund application’ on the next page.
If you want to file a nil refund, select the period and then select “Yes” or “No” in the dialogue box that appears.
In the event of a nil refund application, the taxpayer can check the declaration and file using either DSC or EVC.
Depending on the refund type you choose in the previous step, the appropriate page will display where you may enter the information.
Type-1: Excess cash balance in electronic cash ledger
Enter the amount of money to be refunded.
Type-2: Excess tax paid through GSTR-3B
Enter information from GSTR-3B for any cash tax payments.
Type-3: Accumulated ITC due to exports of goods and services (without payment of tax)
Type-4: ITC accumulated as a result of supplies given to SEZ developers and units (without tax payment)
The filing of GSTR-1 and GSTR-3B for the selected period is required. The steps are the same as those outlined above for the Type 3 refund. The statement, however, will be Statement 5. Instead of JSON, a CSV file can be uploaded.
Type-5: ITC accumulated due to an inverted tax structure
The tax rate and amounts paid for inputs are higher than what is spent on outputs under an inverted tax structure. The steps are the same as those outlined above for the Type 3 refund. The statement, however, will be Statement 1A. Afterwards, enter information such as inverted rated supply turnover, tax payable, adjusted total turnover, and net input tax credit.
Type-6: Refund by the recipient of deemed exports
The steps are the same as those outlined above for the Type 3 refund. The statement, however, will be Statement 5B. After that, provide details like the refund to be claimed and the net input tax credit for considered exports.
Type-7: Taxes paid on materials given to SEZ developers or units (with payment of tax)
The steps are the same as those outlined above for the Type 3 refund. The statement, however, will be Statement 4. The refund amount will be auto-populated based on the uploaded statement.
Type-8: Tax paid on an intrastate supply that was subsequently held to be an interstate supply, and vice versa
The steps are the same as those outlined above for the Type 3 refund. However, the statement will be Statement 6. The refund amount will be auto-populated based on the uploaded statement.
Type 9: Refund of deemed exports by the provider
The steps are the same as those outlined above for the Type 3 refund. The statement, however, will be Statement 5B, and the refund amount will be auto-populated based on the uploaded statement.
Type 10: Return of IGST paid on service exports
The procedures are the same as what was described for the Type 3 refund. The statement, however, will be Statement 2. The refund amount will be auto-populated based on the uploaded statement.
Type 11: Choose the type of order and input the relevant information on account of assessment, provisional assessment, appeal, or any other order.
Type-12: Refund on ‘any other ground.’
Excess interest paid via GSTR-3B could be one of the reasons. Mention the reason for the refund in 200 characters or less, along with the amount.
In refund types that require it, enter the bank account details for the refund and upload the supporting documents and declaration.
Up to ten supporting documents can be uploaded, each with a file size limit of 5 MB.
Click ‘Save’ after previewing the Application. The saved Application is available for action by the taxpayer for 15 days. After checking the boxes for undertaking and self-declaration, click the ‘Proceed’ button.
File RFD-01 using EVC or DSC.
The application reference number, the ARN, is generated and displayed on the screen. This number can be used to track taxpayers. Additionally, the email and mobile phone numbers receive the ARN. Following that, the refund application is assigned to the refund processing officer. The refund status will be updated once it has been processed.
There are two methods for requesting refunds:
If it’s the first scenario, choose the tax period or quarter to navigate to the GSTR-11 that was previously filed. Select the ‘Generate RFD-10’ option.
Click the ‘Create’ button after selecting the embassy or organization radio button. The figures in the editable “Details of the tax paid on purchases as reported under GSTR-11” table will be automatically filled in using data from the return for the relevant period.
Preview and submit using DSC or EVC.
After logging into the GST site in the second instance, go to the dashboard and choose Refunds from the Services menu. After that, select the ‘Application for refund’ option.
Choose ‘Embassy/International Organization’ as the option and click ‘Create’ on the page that appears.
The details of taxes paid that are eligible for a refund are auto-populated from the previously filed GSTR-11.
Verify and edit the refund amount, or enter it manually.
The remaining stages mirror those in the first scenario.
The Application filed by taxpayers or refund petitioners will display as a separate work item on the dashboard of the tax officer or refund processing officer. They will verify and scrutinize the Application and the supporting documents.
Field applications can be tracked by selecting “Track Application Status” from the Refunds menu. Following an inspection by a GST official, the refund amount will be credited to the applicant’s bank account.
The officer will take the following actions:
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