Hello Auditor

How is GST refund processed?

Eligibility for Refund

  • Excess cash balance in electronic cash ledger
  • Accumulated ITC due to zero-rated supplies without payment of tax
  • Refund of IGST paid on exports of goods or services
  • Refund of tax on account of inverted duty structure
  • Refunds due to appeal orders, provisional assessments, or excess payments

Application Procedure

  • File Form RFD-01 on GST portal with supporting documents
  • Choose refund reason, period, and amount from drop-down menu
  • Upload invoice details, shipping bills (for exports), and bank certificates
  • Submit ARN and track refund progress online
  • Ensure prior filing of GSTR-1 and GSTR-3B for selected period

Timelines and Acknowledgment

  • Refund to be sanctioned within 60 days from date of application
  • Provisional refund of 90% granted for zero-rated supply within 7 days
  • RFD-02 (Acknowledgment) issued after successful verification
  • Refund is credited directly to registered bank account
  • Delay in processing invites interest payable to the applicant

Refund for Exporters

  • Exporters can claim refund of IGST paid or unutilized ITC
  • Shipping bill is treated as refund application for IGST route
  • Refund of ITC requires matching with inward and outward returns
  • Letter of Undertaking (LUT) must be filed to avail tax-free exports
  • BRC/FIRC proof is required for service exports

Common Errors and Rejections

  • Incomplete documentation or mismatch in returns
  • Non-submission of LUT for zero-rated claims
  • Filing for incorrect periods or amounts
  • Duplicate claims or multiple claims on same invoice
  • Rejection can be appealed or corrected via fresh application

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *