REFUND UNDER GST
The idea of GST refund applies to any amount recovered by the Government that was:
- Paid by the registered taxpayer in case of excess payment
- He was not liable for the taxes.
The GST law requires that any refund claim should be only allowed to file within 2 years from the payment date. Furthermore, Section 34 of the CGST Act, 2017 provides for the approval of account receivables for rebates on post-delivery, or if goods are transferred within a specified time.
Frequently Asked Questions
The request for a refund must be submitted in Form RFD 01 within 2 years from the date of the event. A Chartered Accountant would also need to certify the form.
There are some situations where you can demand a refund. Here are a couple of them-
- Tax overpayment is made due to error or omission.
- Dealer Exports (including deemed export) goods/services on rebate or refund claim
- ITC accumulation because of tax-exempt or nil-rated output
- Tax refund paid on purchases made by Embassies or UN agencies
- International Visitor Tax Refund
- Finalization of intermediate assessment
A refund claim can be applied by reasons:
- Goods or services Export
- Supplies to production teams and SEZs
- Supplies considered for sale
- Refund of UN or U.N. sales feeEmbassy etc.
- Refund arising from decision, decree, orderOr the Appellant's Directorate, JudicialOr any tribunal
- Refund on account of accrued production tax creditInverted Customs System
- Finalization of intermediate appraisal
- Pre-deposit refund
- An overpayment due to error
- Refunds passed on to overseas GST visitorsGoods kept in India and abroad at the time of their transportationHeading off from India
- Rebate attributable to rebate coupons issuedFor taxes levied on advances in terms of which products orServices were not given
- CGST & SGST refund charged for the condition of283 283The market as an intra-State market, after whichKeep as supply between States, and vice versa.
Let's consider a small case of making excess tax payments. For the month of September Mr. A's GST liability is Rs 50000. But Mr. A made a GST payment of Rs 5 lakh due to mistake. Mr. A has now made an excess GST payment of Rs 4.5 lakh which he may claim as a refund. The deadline for claiming the refund is 2 years from payment date.
Under GST the tax payable is divided mainly into 3 –
IGST – Payable in case of interstate supply (payable to center)
CGST – Payable when making state supplies (payable to center)
SGST – Payable when delivering within the state (payable to state)
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