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CASES FOR WHICH GST RFD-01 CAN BE FILED

Inverted Duty Structure

Refund of ITC on account of Exports without payment of Taxes

Zero Rated Supply with Payment of Taxes in case of supply of Services.

Excess Balance in Electronic Cash Ledger

Refund of unutilized ITC on account of supplies made to SEZ Unit/SEZ Developer without payment of tax

Refund of tax paid on supplies made to SEZ Unit/SEZ Developer with payment of tax

Refund of tax paid on deemed export supplies

Refund of tax paid on intra-State supply which is subsequently held to be inter-State supply and vice versa

CASES FOR WHICH RFD-01 CANNOT BE FILED

GST RFD-01 can only be filed if the amount of refund exceeds Rs.1,000.00.

No refund on ITC shall be allowed, 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.

No refund on Unutilized ITC is allowed where the goods exported out of India are subjected to export duty.

INVERTED DUTY STRUCTURE

It is the situation where credit accumulated on account of rate of tax on Input being higher than the rate of tax on output supplies.

Maximum Refund Under Inverted Duty Structure

Maximum Refund Amount =(Turnover of inverted rated supply of goods and services X Net input tax credit /Adjusted total turnover)– Tax payable on such inverted rated supply of goods and services

Documents required under Inverted Duty Structure

Copy of GSTR-2A

Statement Of Invoices

Self –Declaration under Rule 89(2)(1) if refund amount doesn’t exceed RS. 2 Lacs

Undertaking in relation to section 16(2)(c) that taxes charged has been actually paid to the Government.

EXPORT WITHOUT PAYMENT OF TAXES

All registered Person who exports goods or services will have to furnish letter of Undertaking in FORM RFD-11 and made exports without payment of Taxes.

RFD-11 has to be filed online before exporting of Goods or Services and the same remain valid for 1 Year.

Maximum Refund Under Export Without Payment Of Taxes

Maximum Refund Amount =(Turnover of inverted rated supply of goods and services X Net input tax credit /Adjusted total turnover)– Tax payable on such inverted rated supply of goods and services

Documents required Under Export Without Payment Of Taxes

Copy of GSTR-2A

Statement Of Invoices

Declaration under 2nd proviso of Sec 54(3) i.e. goods exported are not subject to any export duty and declaration under 3rd proviso of Sec 54(3) i.e. ITC claimed doesn’t include ITC availed on goods and services used for making “Nil” or Exempted supplies.

BRC/FIRC in case of export of Services and shipping bill in case of goods

Undertaking in relation to section 16(2)(c) that taxes charged has been actually paid to the Government.

DEEMED EXPORTS

Export where goods supplied do not leave India or payment is received either in Indian Rupees or in Convertible Foreign currency provided goods are manufactured in India. Deemed Supplies notified by Government are as follows: -

Supply of Goods Against Advance Authorisation.

Supply of Capital goods against Export Promotion Capital Goods Authorisation

Supply of Goods to EOU.

WHO CAN FILE REFUND UNDER DEEMED EXPORTS

SUPPLIER- If recipient neither claimed Refund nor availed any ITC on Such supplies.

RECIPIENT- Undertaking that he is claiming Refund on such invoices which have been detailed in statement 5B for the tax period and he has not availed input tax credit on such invoices along with declaration declaring that Supplier has not claimed refund nor availed any ITC.

Further Both Supplies and recipient has to correctly furnish deemed export supplies in respective column of FORM GSTR-1 & GSTR-3B

PROCESS OF REFUND UNDER FORM GST RFD-01

Assessee has to File GST RFD 01 through GST Common Portal

On Receipt of Application, Proper officer within 15 days will issue

• Acknowledgement under RFD-02 or

• Deficiency Memo under RFD-03

Once Deficiency Memo is received by Assessee, He has to file fresh application.

After Acknowledgement, Proper Officer shall pass an order under RFD-04 for sanctioning the amount due within 7 days.

• Proper officer may also issue Provisional Refund of 90% of Refund claim within 7 Days in case of Export Supply.

Proper officer will issue refund Order (GST RFD-06) and issue Payment Advise (GST RFD-05) within 60 days from receipt of proper application.

PROVISION OF INTEREST PAYMENT IN DELAYED REFUND

Government has to pay an interest @ 6% P.A. from the day immediately after expiry of 60 days from receipt of Application.

FOR YOUR INFORMATION

1 POINTS TO BE KEPT IN MIND WHILE EXPORTING GOODS OR SERVICES WITHOUT PAYMENT OF TAXES.

Registered Person has to pay IGST and interest @ 18% p.a. within a period of fifteen days after the expiry of three months from the date of issue of the invoice for export, if the goods are not exported out of India. For Supply of Services, Registered person has to pay IGST and Interest @ 18%, if Payment for Services for which LUT is Filed is not received in Convertible Foreign Exchange with 1 Year from the issue of Invoice.

The Value recorded in GST should normally be the transaction value determined under Sec 15 of CGST Act and same transaction value must be recorded in shipping bill/Bill of Export otherwise lowest value between the Two will be considered in calculation amount of Refund.

2 HOW TO CLAIM REFUND OF INTEGRATED TAX PAID ON SUPPLY OF GOODS EXPORTED OUT OF INDIA.

Shipping Bill filed by exporter itself considered to be an application for Refund of Integrated Tax paid on Export provided following documents must have been filed: -

• Export Manifest or an Export report covering the shipping bill number and Date by person in charge of conveyance carrying Export goods.

• Applicant has furnished valid return in GSTR-3B

• Applicant has undergone Aadhaar authentication as per rule 10B.