How to get Refund under GST

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Introduction:

  1. Type of refund to exporters under GST
  2. Process of refund to exporter under GST
  3. Documents required for refund under GST
  4. Relevant dates for refund applications under GST for exports
  5. Various time lines for Export refunds

Type of Refund to Exporters Under GST.

As we know there are two options to exports under GST. Refund procedure for both the option is different.

Option – 1Exports made on payment of IGSTSystem designated by custom shall process the claim for refund and amount shall be credited on bank account of applicant. No separate application is required as shipping bill itself will be treated as refund application.
Option – 2Export without payment of IGSTRefund shall be processed based on refund application filled via FORM GST RFD – 1A to jurisdictional officer.

Process of refund to exporter under GST

Step1: Filling Form GST RFD-01/1A:       First step for refund is to file refund application in GST FORM – 01 or GST FORM – 1A on common portal.

Step 2: Submission of application to Jurisdictional officer:          The common portal shall generate Acknowledgement receipt number which would be submitted to jurisdictional proper officer along with GST RFD FORM – 01/1A along with supporting documents.

Step 3: Initial scrutiny of the documents by the proper officer: After scrutiny of application, Deficiency Memo in GST RFD-03 or Acknowledgement in GST RFD-02 will be issued within 15 days from the date of application submitted under Step – 2.

Step 4Grant of Provisional Refund: Provisional refund shall be granted within 7 days of acknowledgement and shall be credited directly to the bank account of applicant of acknowledgement in GST RFD-04. Payment advice shall be issued in FORM GST RFD – 05.

Step5: Detailed scrutiny of refund application:     Following will be scrutinised in detail by officer:

  1. Refund statement detail with GSTR – 1 and GSTR-6A.
  2. Shipping bill details shall be checked at ICEGATE Site.
  3. Detail of IGST paid on Inputs with GSTR-3 and GSTR-3B.
  4. Refund applied should be less than IGST paid on Inputs.
  5. Any adjustment in refund amount shall be made via GST RFD-07.

Step6: Refund amount is less then refund claim:  In such case

  1. Notice has to be issued to the applicant in FORM GST RFD-08.
  2. The application has to be reply within 15 days of receipt of notice.

Step7: Final order of refund:

Final order to be made in form GST RFD-06.

Documents required for refund application:

Following documents shall be accompanied by Refund Application:

Refund TypeDocument requiredStatement
Where refund is on account of exports of goodsStatement containing:
a. the number and date shipping bills or bills of export.
b. the number and date of the relevant export invoices.
Statement – 3A
Where refund is on account of exports of ServicesStatement containing: 
a. The number and date of invoices. and
b. The relevant bank realisation certificates or FIRC.
Statement – 3
Deceleration to be enclosed a.       Self – deceleration regarding incident of tax has not been passed further under rule 89(2)(i). b.       Certificate from Chartered accountant or cost accountant regarding incident of tax has not been passed further under rule 89(2)(m). c.       Self – deceleration regarding goods are exported are not subject to export duty. d.      Self – deceleration regarding refund of ITC claimed does not contain ITC availed on goods or services used for making ‘nil’ rated or fully exempt supplies.

Relevant dates for refunds:

The refund application shall be made within 2 years from relevant date. Relevant dates has been explained as below.

Where Goods are Exported out of India
By Sea or AIRthe date on which the ship or the aircraft in which such goods are loaded, leaves India
By Landthe date on which such goods pass the frontier
By Postthe date of despatch of goods by Post Office concerned to a place outside India
Where Services exported out of India
the date of
receipt of payment in convertible foreign exchange, where the supply of service had been completed prior to the receipt of such payment; or
issue of invoice, where payment for the service had been received in advance prior to the date of issue of the invoice;

Various Time Lines for Export Refunds

Form NamePurposeTime Line
GST RFD – 01Application for RefundWithin 2 yrs from relevant dates
GST RFD – 01AApplication for Refund (Manual)Within 2 yrs from relevant dates
GST RFD – 02AcknowledgmentWithin 15 days from the date of application
GST RFD – 03Deficiency MemoWithin 15 days from the date of application
GST RFD – 04Provisional Refund OrderWithin 7 days from the date of GST RFD-02
GST RFD – 05Payment AdviceWithin 7 days from the date of GST RFD-02
GST RFD – 06Refund Sanction/Rejection orderWithin 60 days from the date of GST RFD-02
GST RFD – 07Order for complete adjustment of sanctioned refund – Part AWithin 60 days from the date of GST RFD-02
GST RFD – 07Order for complete adjustment of sanctioned refund – Part BWithin 60 days from the date of GST RFD-02
GST RFD – 08Notice for rejection of application for refundWithin 60 days from the date of GST RFD-02
GST RFD – 09Reply to show cause notice Within 15 days from the date of GST RFD-08

DISCLAIMER: The views expressed are strictly of the author and VJM & Associates LLP. The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.

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How to get Refund under GST

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