GST- Goods and Services tax implemented in 2017 with the aim to replace different taxes with 1 common tax. Good and service tax includes a refund process in which registered taxpayers can claim in case the excess amount is more than GST liability. Taxpayers can claim their refund on GST depending on their industry or business niche. There are different rules and regulations, and methods to claim for different industries. the GST refund of unutilized ITC on account of exports without payment of tax is described in this guide. The newly introduced GST filing return system is expected to make the return process simple. If you are looking to claim a GST refund under the export of goods, we have simplified it for you.And GST refund application in delhi.
Export of Goods under GST
The export of goods or services falls under the IGST Act and is treated as an interstate supply The export of Goods and services under GST is also a Zero-rated supply as the rate of taxes on export supplies is nil/zero. In addition, deemed export supplies are also under zero-rated supply.
How to claim a GST refund for the export of goods?
The process of GST declaration and claim under the export of goods and services can vary. The zero-rated supply or export of goods and services can go through two ways:
(i) Export of goods with payment of tax
(ii) Export of goods without payment of tax
Export of Goods with payment of tax
Exporters of goods and services are allowed to claim if IGST is paid during export. The process under IGST for refund begins with reference to the shipping bill and other documents that were used during the export procedure as per Indian Customs Electronic Commerce Gateway (ICEGATE). To be eligible to claim or file a refund via RFD-01, there are certain perquisites that the taxpayer or export must fulfill:
- The taxpayer or exporter must have a registered GST Portal and have GSTIN during the refund process.
- Exporters have paid taxes on the export of goods for which the taxpayer is claiming a refund.
- Forms GSTR-1 and GSTR-3B have been filled for the relevant tax period.
BRC/FIRC numbers must be present on the export documents that will be required during the refund process.
The filing of RFD-01 will occur only in certain cases such as:
- Only if the export of goods with payment of tax, no separate return/refund application in delhi is needed due to all the details present on the shilling bill. However, when filling out the GSTR-1 make sure all the details match with the shopping bill filled with ICEGATE that you are using as proof.
- When a separate return/refund application is needed. The filing of RFD-01 along with details of the export of services is required to upload with an offline utility. A reference number will be generated to track the status of the application.
Export of Goods without payment of tax or IGST
Under this different documents are required as shipping bills cannot be used as an application for a refund. Exporters must fill RFD-01 with GST portals. This option can be used under a bond or Letter of Undertaking (LUT). Any ITC accumulated services are available for funds. However, LUT is only applicable to selected services. Under the export of goods without payment of tax or IGST, exporters have to provide a turnover of zero-rated supplies. Along with adjusted total turnover of the refund period to get a refund. At the time of filing the GST return without payment of tax, the exporter must have all the applications and documents ready for the filing process. You have to fill out forms under CGST rules and circulars.
How to file a refund application(RFD-01)?
In the case of the export of goods and services with payment, the shipping bill by default acts as a refund application in delhi. However, in case of a refund application without payment of tax, RFD-01 should be filled as follows:
- Open GST Portal, log in, select services, then Refund selection. Select the application for refund and click on the export of services with/without payment of tax. Finally, get RFD-01.
- You can fill out form RFD-01 at the GST portal to get a refund. If you are claiming a refund for multiple periods, you can file the same application.
- You must have zero-rated supplies and adjusted total turnover for the period you want to apply for a refund.
- In the NET ITC table fill the ITC attributes of zero-rated supply along with RFD-01.
- The system will calculate the eligible amount automatically and post it in the column” maximum refund amount to be claimed”.
- When filling out the form and posting the maximum refund amount, make sure that amount is equal to or lower than the balance in each electronic credit ledger. The total amount should not be more than the “maximum refund amount to be claimed” in Statement 3A. It should not increase the calculated aggregate in the table ” balance in the electronic ledger at the end of the tax period.”
- The form GST RFD-01 is no rectification form, so utmost precaution is needed. Fill out the form and upload all the required documents.
- After an application is submitted a Reference Number(ARN) is generated and the application is assigned to the Refund processing officer. You can track your status using an ARN number.
In addition, applicants need to ensure that invoice details under GSTR-1 and refund statements should be the same.
Process for filing Refund with tax payment within the GST system:
- Login to GST Portal, select services, refund, applications for refund, export with payment of tax, RFD-01.
- File the RFD-01 refund application in delhi.With all the details and precautions as it is not a rectification form.
- After submission of the form, the application is passed to the processing officer. The processing officer will issue an acknowledgement via RFD-02/03. Followed by provisional and final sanction order RFD-04/06.
- The processing of the application by an officer and the issue of payment order RFD-05 will be done after PFMS validates the bank account mentioned in the forms.
- After complete validation of the payment order, processing within PFMS will take place which also includes DDO/PAO approval.
- After the payment order, RFD-07B or RFD-08 will be issued. In response to RFD-08, RFD-09 will be issued.
RFD-01
RFD-01 is an application form used for the refund of GST under various cases and categories. It can be filed on the GST portal for a claim.
RFD-02
RFD-02 is an acknowledgment that is made available to the applicants through the common portal indicating the date of the claim for the GST refund.
RFD-03
RFD-03 is a deficiency memo that is issued to applicants who are required to file a fresh/new refund application for which a new ARN will be issued.
RFD-04
RFD-04 is a provisional refund where the amount of refund claimed by the applicant, and the balance amount left that will be refunded later( which is 10% of the refund claimed). The amount allowed on a provisional basis will be provided under each category of different taxes- IGST, CGST, SGST/UTGST.
RFD-05
The payment order where the amount of refund and interest will be issued by the officer. The refund will be processed on this electronically by PFMS.
RFD-06
RFD-06 is a provisional or final GST refund sanction order that is issued by the officer. It will be issued by a GST officer within 60 days of application submission for a GST refund.
RFD-07B
RFD7B is issued for complete adjustment or withholding of refund.
RFD-08
RFD-08 is a form also called “Show case notice” issued by a GST officer on the rejection of a refund application in delhi. This form contains why the application is rejected.
RFD-09
RFD-09 also called “ Reply to show cause notice” is a reply in accordance with RFD-08 by the applicant.
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