Refund Application Process Under GST
The refund application has to be made in Form RFD-01 (to be certified by a Chartered Accountant) within a period of 2 years from the “relevant date.” This relevant date is different for different scenarios.
- When the goods are exported through air or sea, then relevant date shall be the date on which such ship or aircraft leaves India.
- When the goods are carried by a land vehicle, then relevant date shall be the date when the goods cross the land frontier of the country
- When goods are sent through post, then relevant date shall be the date of despatch of goods from the Post Office.
- When the supply includes services, and when the same is completed before receipt of payment, then relevant date shall be the payment receipt date.
- Similarly, when the services are performed after receipt of an advance, then relevant date shall be the invoice date.
- Where refund claim is made for excess input tax credit left unutilised, then relevant date shall be the end of the financial year for which such refund claim is being made.
- Where the goods are supplied for deemed exports, i.e. supply to SEZ or 100% EOU, the relevant date shall be the return filing date related to such deemed exports was filed.
- Where refund arises due to an order passed in favour of the appellant, then relevant date shall be the date of such order.
- Where tax was paid following a provisional assessment and refund now arises, then relevant date shall be date at which such tax was adjusted.
- When the person claiming refund is not the supplier, then relevant date shall be the date at which the goods are received by such person.
- For all other cases, relevant date shall be the date of payment of tax.
It is mandatory to keep in mind these relevant dates as failure to file refund applications within mentioned time can lead to blockage of credit.
Once the application made, an acknowledgement in Form RFD-02 will be auto-generated for future references and sent across through an email and an SMS. In case the system finds some deficiencies in the refund application, then Form RFD-03 shall be sent to the taxpayer to correct his application.
Moreover, there are certain documents that must be enclosed along with the electronic refund application. Where the refund application is below Rs. 5 lakhs, then a declaration shall be made by the taxpayer indicating that the amount of refund has not been utilised by or transferred to any other person. Where such application exceeds Rs. 5 lakhs, then apart from the declaration above, a document evidencing that the amount was paid by the taxpayer shall also be attached.
When the person filing refund claim is a United Nations’ body, Consulate or a foreign embassy, then the application for refund has to be filed within 90 days from the end of the quarter for which the goods or services were procured. The application should be made in Form RFD-10.
Note: There shall be no refunds where the amount of refund is less than Rs. 1,000/-.