Goods And Service Tax (B.Com) 3rd Sem Previous Year Solved Question Paper 2022

Practice Mode:

Explain the rules regarding refund under GST. What is the procedure to claim refund under GST ?


Refund under the Goods and Services Tax (GST) in India is governed by specific rules and procedures. The key rules and procedures for claiming a refund under GST are as follows:

1. Eligibility for Refund:
 - Export of Goods or Services: Refunds are available for taxes paid on goods or services exported out of India.
 - Inverted Duty Structure: When the GST rate on inputs is higher than the GST rate on the output supplies, a refund can be claimed.
 - Accumulation of Input Tax Credit (ITC): If there is an unutilized ITC due to the zero-rated supply or inverted duty structure.
 - Excess Payment: Any excess payment of GST can be claimed as a refund.

2. Application for Refund:
 - An eligible person should file a refund application electronically on the GST portal using Form RFD-01.
 - Different forms are prescribed for different refund categories, such as RFD-01A, RFD-01B, etc.

3. Time Limit for Filing:
 - Generally, refund applications must be filed within two years from the relevant date.
 - For an export refund, the time limit is within one year from the date of export.

4. Documents and Information:
 - Supporting documents and information should be attached to the refund application, including invoices, shipping bills, bank account details, etc.

5. Refund Sanction:
 - The proper officer will verify the application, and if everything is in order, the refund will be sanctioned.
 - In the case of export refunds, the amount is generally granted provisionally and later adjusted against the final refund.

6. Refund Payment:
 - The refund amount will be credited directly to the applicant’s bank account through the electronic payment system.

7. Refund Rejection:
 - If the refund application is incomplete or does not meet the required criteria, it may be rejected, and a show-cause notice will be issued.

8. Appeal Mechanism:
 - If the applicant disagrees with the refund decision, they can file an appeal with the appropriate authorities.

9. Interest on Delayed Refunds:
 - In case of delayed refunds, interest is payable as per the law