Apply for GST Refunds
GST Refunds
GST is all about a smooth flow of funds and compliances till the end. To facilitate such a smooth flow, it is imperative for the Government to provide for a hassle-free refund process. The current tax structure is cumbersome, and it takes months and sometimes years to get refunds from the Government’s kitty.
GST provides for a clearer and efficient invoice based tracking system, verifying the transactions on an individual basis, thus, allowing systematic checking of the same. It comes as a huge relief for manufacturers or exporters, especially those in a 100% EOU or Special Economic Zone, whose working capital gets tied up in this cumbersome refund process.
Events where refund Arises
Refund Application Process Under GST
The refund application has to be made in Form RFD-01 (to be certified by a Chartered Accountant) within a period of 2 years from the
“relevant date.” This relevant date is different for different scenarios.
Once the application made, an acknowledgment in Form RFD-02 will be auto-generated for future references and sent across through an email and an SMS. In case the system finds some deficiencies in the refund application, then Form RFD-03 shall be sent to the taxpayer to correct his application.
Moreover, there are certain documents that must be enclosed along with the electronic refund application. Where the refund application is below Rs. 5 lakhs, then a declaration shall be made by the taxpayer indicating that the amount of refund has not been utilized by or transferred to any other person. Where such application exceeds Rs. 5 lakhs, then apart from the declaration above, a document evidencing that the amount was paid by the taxpayer shall also be attached.
When the person filing refund claim is a United Nations’ body, Consulate or a foreign embassy, then the application for refund has to be filed within 90 days from the end of the quarter for which the goods or services were procured. The application should be made in Form RFD-10.
Refund Process
The refund application has to be made in Form RFD-01 (to be certified by a Chartered Accountant) within a period of 2 years from the
“relevant date.” This relevant date is different for different scenarios.
FAQ
You can easily calculate your refund. For instance, if your liability for the month of July is 20,000 but you paid 2 lakh by mistake then you are eligible to claim your 180,000 amount.
The time limit of claiming amount is 2 years and as per norms after claiming your refund you will get in working 30 days.
The form of the refund application is RFD 01 which you can fill within 2 years. Make sure your firm should be certified by a chartered accountant.
GST portal provides an option to GST taxpayers to raise a complaint. There is a form available PMT 07.