Before discussing How to Claim Tax Refund under GST? Then first we know about who can claim refund, Any Person other than those covered under section 55. Refund of tax paid into cash ledger but not use.Exporters can take the refund of tax paid for goods exported. Suppliers to a Special Economic Zone unit or a Special Economic Zone developer.Suppliers supplying goods or and services Deemed Export as notified by GOI.Persons whose Input Goods and or Services rate of tax is higher than Output rate of tax.Claim refund when refund shall be claimed within two years from the relevant date. Refund from Electronic Cash Ledger can be Claimed in the Returns itself.
Claim Tax refund under GST is that Refund of balance in the electronic cash ledger may be made through the return furnished for the relevant tax period in FORM GSTR-3, FORM GSTR-4 or FORM GSTR-7.
In Case of Export: Application for refund shall be filed only after the export manifest or an export report, is delivered.
In Case of SEZ(special economic zone): Application for refund shall be filed by the supplier of goods and or services only after the endorsement of utilization by the specified officer of the SEZ.
In Case Of Deemed Export: Application shall be filed by the recipient of deemed export supplies.
Refund of Deposit / Advance Tax :- Refund of any amount, after adjusting the tax payable by the applicant out of the advance tax deposited by him under section 27 at the time of registration, shall be claimed either in the last return required to be furnished by him or only after furnishing of the said last return.
Documentary Evidences for Claiming Refunds : – The reference number of the order and a copy of the order passed.
Export of Goods: A statement containing the number and date of shipping bills or bills of export and the number and date of relevant export invoices.
Export of Services: A word containing the location or number and day of invoices and the similar Bank Realization Certificates or Foreign Inward Remittance Certificates.
SEZ Goods: A statement containing the number and date of invoices and Endorsement by SEZ Specialised Officer.
SEZ Services: A statement containing the number and date of invoices, the details of payment and the evidence regarding Endorsement by SEZ Specialised Officer.
Deemed Export: A statement containing the number and date of invoices along with such other evidence as may be notified in this behalf. A choice of word in Annex 1 of FORM GST RFD-01 containing the number and date of invoices confirmed and issued around a tax period in a case where a refund of entire utilized input tax credit under subsection (3) of section 54. The testimonial number of the accurate assessment term and a copy of the said order in a case where the refund arises on account of finalization of provisional assessment.
In Case Refund below 2 Lakhs: 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 Case of Refund above 2 Lakhs: A Certificate in Annex 2 of FORM GST RFD-01 issued by a chartered accountant or a cost accountant.
Zero-Rated Supplies : In case of zero-rated supply of goods and/or services without payment of tax under bond or letter of undertaking, refund of input tax credit shall be granted as per the following formula: Refund Amount = (Turnover of zero-rated supply of goods + Turnover of zero-rated supply of services) x Net ITC /Adjusted Total Turnover Where,-“Refund amount” means the maximum refund that is admissible;”Net ITC” means input tax credit availed on inputs and input services during the relevant period;”Turnover of zero-rated supply of goods” means the value of zero-rated supply of goods made during the relevant period without payment of tax under bond or letter of undertaking; “Turnover of zero-rated supply of services” means the value of zero-rated supply of services made without payment of tax under bond or letter of undertaking.
Interest on Refund: Exemptions: If any Refund not paid within 60 days to the applicant from the date of receipt of application or order for refund proper officer have to give order for refund and interest thereon in Form GExemptions:
There are currently around 300 items in the exemption list from central excise duty and 90 from the state’s value added tax. About 80 items are likely to make it to the exemption list under the proposed goods and services tax (GST). As Per Section 11 of the CGST Act, Government is empowered to give exemptions to such kind of persons or goods as it may think fit.
The requirement of Accounts: consignerEvery registered person shall keep the books of account at the principal place of business and at every related place(s) of business mentioned in his certificate of registration and such books of account shall include any electronic form of data stored on any electronic device. Every owner or operator of warehouse or go down or any other place used for storage of goods and every transporter, irrespective of whether he is a registered person or not, shall maintain record consignor, consignee and other relevant details of the goods in such manner as may be prescribed.
Period of maintenance of Accounts: Every registered person required to keep and maintain books of account or other records until the expiry of 72 months from the due date of furnishing of annual return for the year pertaining to such accounts and records: Provided that a registered person, who is a party to an appeal or revision or any other proceedings shall retain the books of account and other records pertaining to the subject matter of such appeal or revision or proceedings or investigation for a period of 1 year after final convention of such appeal or revision or proceedings or investigation, or for the period specified above, whichever is later.