GST Refund

What is GST refund?

Usually when the GST paid is more than the GST liability a situation of claiming GST refund arises. Under GST the process of claiming a refund is standardized to avoid confusion. The process is online and time limits have also been set for the same.

When can the refund be claimed?

There are many cases where refund can be claimed. Here are some of them –

Excess payment of tax is made due to mistake or omission.

  • Dealer Exports (including deemed export) goods/services under claim of rebate or Refund
  • ITC accumulation due to output being tax exempt or nil-rated
  • Refund of tax paid on purchases made by Embassies or UN bodies
  • Tax Refund for International Tourists
  • Finalization of provisional assessment

What is the time limit for claiming the refund?

  • The time limit for claiming a refund is 2 years from relevant date.
  • The relevant date is different in every case.
  • Here are the relevant dates for some cases –
  • Reason for claiming GST Refund - Relevent Dates

    1.Excess payment of GST - Date of payment

    2.Export or deemed export of goods or services - Date of dispatch/loading/passing the frontier

    3.ITC accumulates as output is tax exempt or nil-rated - Last date of financial year to which the credit belongs

    4.Finalization of provisional assessment - Date on which tax is adjusted

Also if refund is paid with delay an interest of 24% p.a. is payable by the government.

How to claim GST refund?

The refund application has to be made in Form RFD 01 within 2 years from relevant date.

The form should also be certified by a Chartered Accountant.