Refund under GST in Dehradun

Refund Under GST

Whenever a Registered person called Taxpayer in case Of GST pays tax in excss of the amount which  is actually due to the Government than the government will pay back the excess tax  over due amount to the Registered Person the amount  in excess of is called REFUND.

How to fill the GST Form ?

– Log in to the GST portal.

– Select Refund Tab

– After that ARN number will be generated.

– The Proper Officer after receipt of application will process refund     within 15 days of receipt of application.

Is there any Time limit for claiming refund ?

Yes there is a time limit for claiming refund under GST . The time limit specified in the Act is TWO years from the date of payment.

What kind of Mechanism GST has provided in case of Refund ?

GST has prescribed a mechanism of how to avail Refund under different circumstances. Governments in order to encourage exports have made special provision in GST to export goods or services without payment  of GST under  BOND OR LUT (Letter OF Undertaking) or in case of Export Of Goods and Services with Payment OF IGST and then claim for Refund.

How  is Refund granted ?

Refund under GST can be made under two conditions :

 – Export Of Goods.

 – Export Of Services.

Under Export of Goods :

There are further TWO OPTIONS :

 – Supply under LUT /Bond (Without Payment OF IGST) – Refund can be claimed of Unutilised ITC under section 54 (3) r/w Rule 89.

 Refund application to be made under GST RFD-01.

– Refund of IGST Paid can be claimed in section 54(1) r/w rule 96.

  Further documents required are Shipping Bill or Bill of Export.

 – Refund application is processed by the Proper Officer of Customs.

Under Export of Services :

There are further TWO OPTIONS :

– Supply under LUT /Bond (Without Payment OF IGST) – Refund can be claimed of Unutilised ITC under section 54 (3) r/w Rule 89.

Refund application to be made under GST RFD-01 :

 – Supply on Payment of IGST     – Refund of IGST Paid can be claimed

 Further documents required are Shipping Bill or Bill of Export.

 – Refund application is processed by the GST Department.

How to Apply for Refund in case of Export Of Goods or Services under Bond/LUT :

 – The Taxpayer prior to Export under Bond and LUT will furnish Bond/LUT in GST  RFD II     to the Jurisdictional Officer  which will be Binding the Tax Payer to pay Tax due plus Interest.

 < Goods not exported within 15 days after 3 months of Furnishing Bond /LUT with Jurisdictional Officer.

< Payment of services not received within 15 days after 1 year of export being made.

Export Invoices and its Details are to be stated in GSTR 1 which are even transmitted to the Custom Authorities System so that cross verification can be made with the details mentioned in GSTR 1.

What if Goods are not exported within time :

 If goods are not exported within time and Registered person fails to pay the amount within the stipulated  time period than the facility provided to Registered person to pay GST under Bond and LUT will be withdrawn  immediately and recovery proceedings will be initiated as soon as possible. However there is a provision  in GST that the facility withdrawn will be restored when the Registered Person will  pay the amount due.

When will the Facility of Letter of Undertaking will not be available ?

The Registered Person will not be allowed to avail the facility of LUT (Letter Of Undertaking) if he has been prosecuted for any offence where Tax evaded is more than 250 Lakhs.

Alternative method of providing refund under GST :

There is one more method For Refund Under GST in respect of IGST Paid on Goods and Services exported out of India. Shipping Bill will be a conclusive evidence that export has been made and will be considered as deemed application when person in charge of a vessel files documents such as Export Manifest,  Bill Of Export .

Where the Detail of Invoices need to be mentioned ?

Details Of invoices need to be mentioned under GSTR 3B.

Who will be going to process Refund ?

In case of GST Proper Officer of GST will process refund whereas in case of Customs Proper Officer of Customs will refund IGST.

Can the Refund be withheld by the Department ?

However,  Proper Officer may with the prior approval of Joint Commissioner may withhold refund if goods have been exploited in Violation of rules.In case of Export of Services for Refund of IGST Paid will be dealt in accordance with rule 89.

Penalty for erroneous Refund :

A penalty of 100% of the Tax amount or 10,000 webs. is higher.