Steps for Filing GST Refund Manually in India
GST Refunds has been enabled vide inserting rule 97A in CGST Rules 2017 vide Notfn No. 55/2017 CT dt 15.11.2017.
The following types of GST Refunds are covered under manual filing viz.,
- GST Refund of Excess balance in electronic cash ledger,
- Export of services with payment of tax,
- Accumulated ITC in case of Export of goods/services without payment of accumulated ITC due to inverted tax structure, on supplies made to SEZ with payment of tax,
- Accumulated ITC in case of supplies made to SEZ without payment of tax and on deemed exports.
| Relevant Section For GST Refund | Section 54 of CGST Act, 2017 |
| Relevant CGST Rules 2017 for GST Refund | |
| Procedural Circulars | Circular No. 17/17/2017 GST dt 15.11.2017 |
| Circular No. 24/24/2017-GST dt 21.12.2017 | |
| Periodicity | For any tax period
|
| Time limit | Before expiry of two years [ Refer Section 54(1) of CGST Act. ] |
| Relevant date | Refer Explanation to Section 54 of CGST Act. |
| Minimum GST refund to be claimed | above Rs.1000/- Section 54(14) of CGST Act. |
| Authority to whom before filed Central/State | Jurisdictional GST AC/DC [ Notification No 39/2017 Central Tax dated 13th October, 2017 cross-empower State Tax officers for processing and grant of refund ] |
| Payment of the sanctioned amount of GST Refund | The payment of sanctioned amount in respect of CGST/IGST/CESS shall be made by the Centre and SGST/UTGST shall be made by the respective States/UTs |
| Registers to be maintained by the jurisdictional officer | Three Registers: Table -1 : Receipt and Acknowledgement Table -2 : Deficiency memo, Provisional order, payment advice Table -3 : SCN, Sanction/Rejection Final Order |
| Things to keep in mind while filing for GST Refund | >Documentary evidence as listed in rule 89(2) of CGST Rules shall accompany every claim >Return for the period must have been filed before filing the claim (GSTR 1, GSTR 3B) >Only one deficiency memo shall be issued >Resubmission of claim on receipt of deficiency memo shall be treated as new one, however the ARN and debit entry generated earlier shall be used |
When GST Refund not Allowed
i ) No refund of unutilised input tax credit on specified goods allowed :-
- Notification No. 5/2017-Central Tax (Rate), dated 28-6-2017 for notification specifying supplies of goods in respect of which no refund of unutilised input tax credit shall be allowed under section 54(3).
- Notification No.5/2017-Integrated Tax (Rate) Dated 28th June, 2017 for Supplies of goods in respect of which no refund of unutilised input tax credit shall be allowed under IGST Act 2017
- Notification No. 5/2017-Union Territory Tax (Rate) Dated the 28th June, 2017 Specifying supplies of goods in respect of which no refund of unutilised input tax credit shall be allowed under section 54 (3) of CGST Act 2017
- Notification No 29/2017-Union Territory Tax (Rate) Dated 22nd September, 2017 Seeks to amend notification no. 5/2017- integrated tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding restriction of refund on corduroy fabrics vide
ii) Non-availability of refund of unutilized ITC for supply of soecified service :-
- Notification No. 15/2017-Central Tax (Rate), dated 28-6-2017 for notified condition of non-availability of refund of unutilized ITC for supply of service specified in Item 5(b) of Schedule II of CGST Act (construction of building, complex etc.).
- Notification No. 12/2017-Integrated Tax (Rate) Dated 28th June, 2017 To notify the supplies not eligible for refund of unutilized ITC under IGST Act
- Notification No. 15/2017-Union Territory Tax (Rate) Dated the 28th June, 2017 : To notify the supplies not eligible for refund of unutilised ITC under UTGST Act
Procedure for filing GST Refund
| Types of GST Refund (Categories covered) | Procedure for filing | Document/ Statement to be attached with GST Refund Application | Procedure to be followed by the GST dept for issue of GST Refund |
| Supply of goods on payment of IGST to SEZ | 1) RFD01A to be filed manually | 1) Declaration –rule 89(2)(f)(non availment of ITC by receiver) 2)Self Declaration –rule 89(2)(l) (unjust enrichment) 3) Declaration to the effect that no prosecution initiated for last 5 years | 1) On ascertaining the completeness in all respects, the acknowledgement in Form RFD -02 shall be issued within 15 days from the date of filing the claim (Otherwise deficiency memo in Form RFD -03 shall be issued) 2) If the application is not filed afresh within 30 days of receipt of deficiency memo order shall be passed in Form PMT-03 and re credit of the amount claimed shall be done through Form RFD -01B 3) Provisional refund (90%) order in RFD – 04 shall be passed within 7 days of acknowledgement. 4) Payment advice to be issued in Form RFD -05 5)Notice for rejection of refund to be issued in Form RFD – 08 6)Refund sanction / rejection order to be issued in Form RFD -06 within 60 days
7)Order for complete adjustment/withholding of sanctioned refund to be issued in Form RFD- 07
|
| Export of services on payment of IGST | 1) RFD01A to be filed manually | 1) Statement containing details of Invoices and relevant BRC/FIRC 2) Declaration to the effect that no prosecution initiated for last 5 years. | |
| Supply of services on payment of IGST to SEZ | 1) RFD01A to be filed manually | 1) Declaration –rule 89(2)(f)(non availment of ITC by receiver) 2)Self Declaration –rule 89(2)(l) (unjust enrichment) 3) Declaration to the effect that no prosecution initiated for last 5 years. | |
| GST Refund of unutilized ITC used in making zero rated supplies of goods/services for export and to SEZ | 1) RFD01A to be filed in portal2) ARN to be generated as proof for debit entry in credit ledger. 3) RFD01A to be filed manually along with ARN generated | 1)Declaration under second proviso to section 54(3) –(goods not subjected to export duty, Non availment of drawback on goods/services) 2)Declaration under sec.54(3)(ii) 3) Statement 3A (rule 89(4)) –in case of exports Statement 5A(rule 89(4) – in case of supplies to SEZ 4) Statement containing shipping bill wise details of goods exported 5) In case of services statement containing details of Invoices and relevant BRC/FIRC 6) Declaration to the effect that no refund is claimed against the invoices involved in the claim 7) Declaration to the effect that no prosecution initiated for last 5 years. | |
| GST Refund claim arising due to inverted duty structure (accumulated ITC) | 1) RFD01A to be filed in portal2) ARN to be generated as proof for debit entry in credit ledger. 3) RFD01A to be filed manually along with ARN generated | 1) Statement -1(rule 89(5)) 2) Statement 1A(rule 89(2)(h)) 3)Declaration to the effect that no refund is claimed against the invoices involved in the claim 4) Declaration to the effect that no prosecution initiated for last 5 years | |
| GST Refunds on accounts of deemed exports | 1) RFD01A to be filed manually | 1) Statement -5B(rule 89(2)(g)) 2) Declaration (rule 89(2)(g)) by supplier or receiver as the case may be with “Undertaking” 3) Declaration to the effect that no prosecution initiated for last 5 years | |
| GST Refunds on balance in electronic cash ledger | 1) RFD01A to be filed in portal 2) ARN to be generated as proof for debit entry in credit ledger. 3) RFD01A to be filed manually along with ARN generated | 1) Declaration to the effect that no prosecution initiated for last 5 years |
Formula for GST Refund
GST Refund amount in case of zero rated supply of goods/services or both (rule 89(4):
Refund Amount = (Turnover of zero-rated supply of goods + Turnover of zero-rated supply of services) x Net ITC ÷Adjusted Total Turnover
Where,-
(A) “Refund amount” means the maximum refund that is admissible;
(B) “Net ITC” means input tax credit availed on inputs and input services during the relevant period;
(C) “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;
(D) “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, calculated in the following manner, namely:-
Zero-rated supply of services is the aggregate of the payments received during the relevant period for zero-rated supply of services and zero-rated supply of services where supply has been completed for which payment had been received in advance in any period prior to the relevant period reduced by advances received for zero-rated supply of services for which the supply of services has not been completed during the relevant period;
(E) “Adjusted Total turnover” means the turnover in a State or a Union territory, as defined under clause (112) of section 2, excluding the value of exempt supplies other than zero-rated supplies, during the relevant period;
(F) “Relevant period” means the period for which the claim has been filed.
GST Refund on account of inverted duty structure, refund of input tax credit shall be granted as per the following formula (rule 89(5)–
Maximum Refund Amount = {(Turnover of inverted rated supply of goods) x Net ITC ÷ Adjusted Total Turnover} – tax payable on such inverted rated supply of goods
Explanation.- For the purposes of this sub rule, the expressions “Net ITC” and “Adjusted Total turnover” shall have the same meanings as assigned to them in sub-rule (4) of rule 89.
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