Under Section 54 of the GST law, the term ‘refund’ in the context of GST would include the following instances –
Besides these types of refunds which have been specified under Section 54 of the GST Act, there can also be other types of refunds like the following –
Now you know the instances when you can claim a GST refund but do you know when should the refund be claimed?
The application for claiming a GST refund should be made within 2 years of the relevant date. The concept of ‘relevant date’ differs across the different instances of GST refunds. Here are the relevant dates for common instances of GST refunds –
|Instance of GST refund||Relevant date|
|Refunds when goods are exported by air or sea||The date on which the aircraft or the ship carrying the goods leaves India|
|Refunds when goods are exported by land||The date on which the goods pass the frontier|
|Refunds when goods are exported by post||The date when the goods are dispatched by the concerned post office|
|Refunds when goods are considered to be deemed exports||The date on which the return on such goods is filed|
|Refunds when services have been exported and when the supply of services has been completed before receiving the payment||The date on which the payment for the services is received|
|Refunds when services have been exported and the payment for such services has been received before the invoice has been issued||The date when the invoice is issued|
|Refund of tax due to decree, judgement, direction or order of the Appellate Authority, Appellate Tribunal or any other court||The date when the decree, judgement, direction or order is communicated|
|Refund for the unutilized part of the Input Tax Credit||The last date of the financial year in which the claim for refund is made|
|Refund when GST is paid provisionally under the rules of the GST Act||The date when the tax is adjusted after the final assessment is done|
GST refund would be payable to an applicant only when the amount is relevant to the following –
After the application for GST refund is submitted by the applicant, the refund is usually paid within period of 60 days. If, however, the refund has not been paid within 60 days, an interest would have to be paid on the delayed refund. Such interest would be calculated on a rate specified by the Central or the State Government based on the recommendation of the GST Council. The period over which interest would be calculated would be from the expiry of the refund due date till the date that the refund is paid. For example, if a GST refund was filed on 1st July, 2019, the refund should be paid by the Government by 1st September, 2019. However, if there is a delay and the refund is paid by 1st December, 2019, interest would be charged for the three months over which the refund was delayed.
Here are some important aspects of GST refund which you should know about –
So, understand the instances when GST refund becomes applicable and the rules for claiming the refund so that you can get refund of the extra tax that you might have paid.
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If you are eligible for a GST refund, you can file for the refund using GST Refund Form RFD-01. The form should be prepared by a Chartered Accountant. You can then submit the form within the relevant date and claim your refund.
If you fail to file for your GST refund within the mentioned relevant dates, you would not be able to get the refund for the extra tax paid. Your input tax credits can also be blocked in future.
In case of discrepancies in RFD-01, a new form called Form RFD -03 is generated and sent to the assessee to rectify the mistakes in his GST refund application.