GST Refund Service in Delhi
What is GST Refund?
When the tax authorities have to pay due tax amount to the taxpayers it is called as GST refund. The taxation authorities have to provide these to the taxpayers who have registration under GST, in cases when they have made excess payments of tax or for some other reasons. Only in special mentioned cases, a taxpayer is liable to claim GST Refund. Getting GST Refunds or Input Tax Credits on time is really very important for the taxpayer or the business organization to maintain continuous cash flow.
When to claim GST Refund?
A taxpayer can claim GST refund in scenarios as mentioned in the CGST Act. In order the claimant wants a successful refund, the minimum amount to be claimed is set to be one thousand rupees. In one of the following mentioned cases a GST refund claim can be made by the taxpayer-
- On payments made for deemed exports.
- When they have made excessive payment of tax due to mistake and lack of knowledge or due to any confusion regarding the type of transaction.
- On payment of Integrated GST during export or export under letter of undertaking.
- When there is excessive balance in the Electronic Cash Ledger.
- On the payments made under the inverted duty structure.
- When the central or the state government has collected or deposited the taxes wrongly.
- When supplies have been made to the Special Economic Zone (SEZ).
- Dues that are still left even after the finalization of the provisional assessment.
- When the excessive amounts are due, after the finalization of the tax investigation.
- Taxes that were paid on the purchases made by United Nation body or embassies.
- When in case of zero-related goods the Income Tax Credits are still unutilized.
- The fees deposited by the taxpayer at time of initializing any appeal and the decision is made in favor of the taxpayer.
- Taxes paid on the goods that were delivered either partially or fully ad where no invoice was generated or issued regarding the same.
- Taxes paid for the zero-related goods as mentioned in GST Act.
- When the credit notes have been provided by the supplier in the form of incentives.
- Taxes paid for the input supplies that were used to make or manufacture the zero-related goods.
- Taxes paid by the international tourist.
- Taxes paid on goods and services that have been exported.
- Taxes paid for input supplies that were used for making or manufacturing the goods that have been exported.
What is the process of Claiming a GST Refund?
GST refunds can be claimed by the taxpayer while filing the tax returns at regular intervals. A procedure laid down under the GST Rules must be followed by taxpayer who wants to claim interest or refunds or input tax credits. The GST Refund process of claiming is as follows:
- The taxpayer in order to claim refund has to make an application through Form GST RFD-01 on GSTN portal.
- Once the applicant submits the duly filled application, on acknowledgement, a unique number is generated in the Form GST RFD-02.
- The application is duly checked by the concerned officer. He/she will communicate any loopholes or deficiencies in the application through Form GST RFD-03. Also, a provisional refund is granted to the claimant by the officer.
- The concerned officer scrutinizes and verifies the application and the documents submitted by the claimant and ensure their validity. Once the verification process is done successfully, the officer passes an order in Form GST RFD-04, where he/ she orders a provisional refund of tax requested by the claimant in the GST Refund application. This is done within seven days from the date of acknowledgement.
- The officer issues a payment advice inForm GST RFD-05. Once the application process is completed, the refund amount is deposited in the bank account provided by the claimant in the application.
- Any adjustment to the electronic cash and credit ledgers of the claimant and to return and reduce the Input Tax Credit liability is made by the taxation department.
- The authorities examine the claim amount and check whether they are just or unjust. If the claim made in the application is unjust the application is not passed. And the tax refund amount is deposited in the consumer welfare fund ran by the government.
- In cases where the claimant has been asking for a refund amount higher than the already determined refund then he’s directly becomes eligible for a pre-audit process that is to be held by the taxation authority. This audit is conducted to determine the actual amount of refund that the applicant is liable to.
What are the documents required during GST Refund?
The documents required during GST Refund process depends on various cases of refund. The required documents are-
- Copy of tax invoices.
- Copy of invoices of any transactions done by the supplier.
- An endorsement from an authorized officer for proving that the receipt of goods and services were provided to the Special Economic Zone (SEZ).
- A declaration regarding that ITC has not been availed by the SEZ unit on the taxes paid by the service provider or supplier.
- A certificate from Chartered Accountant if the refund claim amount exceeds Rs. 2,00,000.
- Reference number of the order, in case the refund is claimed based on the order from an appellate court.
- Statements containing details of all the invoices that have been prescribed by the GST provisions.
- Export invoices.
- Relevant Bank Realization Certificate.
- Statement containing the details of date and number of all the bills related to the exports.
What are the relevant dates for filing for GST Refund?
The last date for filing GST Refund claim by a supplier or taxpayer is up to two years of making payments or transaction. GST Refund application has to be filed at the end of a quarter. The last date for making claims depends on different situations in different cases. These are as follows-
- In cases where taxes were paid provisionally-From the date of tax adjustment made after competition of the final assessment.
- In case where the goods regarded as deemed exports – The date on which the return related to the deemed exports was filed by the taxpayer or the supplier or exporter.
- In case when the goods are exported by sea or air – The last date to file for refund in such cases is the date on which the ship or aircraft in which the goods have been loaded, leaves India.
- When the input tax credit is unutilized –End of the financial year in which the claim for tax refund arises is the relevant date for making a GST Refund claim.
- In case when goods are exported by post – Date of dispatching the goods by the concerned post office is from when the last date is calculated.
- In case where the goods exported by land – The last date is calculated from the date on which the goods have passed the frontier.
- In the case of a person, other than the supplier – The relevant date is from the date of receipt of goods or services or both by the person.
- In cases where the refund of taxes is a result or consequence of a judgement, decree, order or on the direction of an Appellate court or authority –The date on which the judgement or order was initiated or communicated.
- In cases where the services have been exported, where the supply of service has been completed prior to the receipt of payment – The relevant date is the date of receipt of payment.
- In case of services exported, where the payment has been received in advance, prior to the date of issue of invoice – The relevant date is the date of issue of the invoice.
- Any other relevant case – The relevant date is from the date of tax payments.
What if a GST Refund is delayed?
In general, the application for claiming the GST refund is processed within seven days from the date of filing the application. But in case, if it takes more than two weeks to process the application then the claimant is liable to get interest rate on the refund amount that is been already fixed by the authorities.
In case a person fails to file a GST Refund claim within the above-mentioned timelines then they may never get a GST refund and also, their Input Tax Credits will be blocked forever by the GST Council.
GST Refund Service
Introduced in the year 2017, GST is one of the biggest taxation reforms by the Indian Government. It focuses on strengthening the economic structure of the country. it has provided tremendous boost and upsurge to the economy. To benefit from this tax regime and to understand it with respect to one’s organization, we a have professional team of GST consultants and service providers.
As a leading GST Refund Service provider, we help and facilitate the business through the release of blocked funds from the GST Authorities. These funds can be used for various purposes by the business as working capital, for expanding the existing business or/ and for its modernization. For making such a claim the GST Regime has provided with a standardised form and provisions. The provision pertaining to the refund under the GST law, helps in standardizing and streamlining the refund procedures.
Through our team of chartered accountants and tax professionals, we provide following under GST Refund Service:
- Collation of documents required for preparing GST refund application
- Preparation of refund application, reconciliation statements, declarations and uploading the same on portal
- Preparing reply to any deficiency memo received and filing of fresh documents on portal
- Time to time discussion and follow up with officers to get refund amount sanctioned.
We have been successfully providing our GST Refund Service to both multinational and domestic clients for last 2 years.
Procedure for Filing GST Refund Online
- Login to GST portal.
- Select the Refund tab.
- Click on Application for Refund Option.
- Select the type of refund.
- Fill in the necessary details and submit.
- An Application Reference Number (ARN) gets generated.
- For future references, take a print out of the application with the ARN number.
- Submit the application with all the applicable annexures to the respective GST officer in the jurisdiction.
The Officer can be prescribed by the Central tax authority or State/Union Territory tax Authority as may be notified for processing the refund. He/she shall intimate the taxpayer or claimant about the refund process through making an acknowledgement in Form RFD-02.
Why to choose us as your GST Refund Consultants?
We, at EZYBIZ India Consulting LLP believe in providing qualitative value-added services to our clientele. We are a leading GST Refund Consultants in Delhi NCR. With our expert team of GST refund consultants, we provide services like document verification, applying a comprehensive process checklist, categorization, reconciling with previous and new GST records and regular follow ups and then pursuing the application for refund as per the new regime with the taxation authorities. With our comprehensive process in place, all a taxpayer needs to do is to provide the necessary data to our team and wait for the refund order receipts.
The scope and requirements of GST Refund law is very complex and time constraining. We, at EZYBIZ India Consulting LLP aim to make it simpler and easy to implement for our clients. We break down complex things into simple language for our clients. Even if the problem is complex, our skilled GST Refund consultancy and planning team is always ready to solve it with ease. Our GST Refund consultant team comes with years of experience in handling different matters of indirect taxes in India. We have ground experience related to all the hassles faced by taxpayers.
As an experienced service provider of GST Refund from taxation authorities, we make necessary arrangement to quicken the refund granting period. Our each and every working procedures are executed in coherent manner and legally to avoid any type of legal complications. Our focus is to provide advisory on maintaining proper documents so that we can submit or show legal data to higher authority as and when needed. We are an eminent service provider of GST Refund.
The GST Refund on unutilized Input Tax Credit on account of following is not available:
- On the goods exported outside India, liable to export duty and
- Where the supplier of goods or services or both avails of drawback (Central tax or IGST) paid on such supplies.
Following forms have been prescribed for GST refund:
- GST-RFD1 – Application for refund
- GST-RFD 2 – Acknowledgement
- GST-RFD 3 – Communication of deficiency in refund application by proper officer
- GST-RFD 4 – Order of sanctioning of refund on provisional basis
- GST-RFD 5 – Payment advice to credit amount to bank account of applicant
- GST-RFD 6 – Order sanctioning refund on final basis
- GST-RFD 7 – Order giving details of adjustment against outstanding demand.
- GST-RFD 8 – Notice to show case if refund is not admissible
- GST-RFD 9 – Reply of notice by applicant
- GST-RFD 9 – Quarterly application of refund in case of specialized agency
Refund Amount = (Turnover of zero-rated supply of goods + Turnover of zero-rated supply of services) x Net ITC/ Adjusted Total Turnover
- “Refund amount” means the maximum refund that is admissible
- “Net ITC” means input tax credit availed on inputs and input services during the relevant period