How to Claim GST Refund?

GST stands for Goods and Services Tax. It is an indirect tax levied on supply of goods and services. Under the GST regime, a registered taxpayer can claim GST refund if they have paid excess tax to government. In this blog post, we shall explain how to claim GST refund.

What is GST Refund?

GST refund refers to the process through which registered taxpayers can recover the excess tax they paid to the authorities in situations like exports, accumulation of input tax credit (ITC), inverted duty structure or unintentional errors in tax payment. 

The process for claiming goods and services tax refund is a completely online process and requires filing an application in Form GST RFD-01 via official GST portal. The refund claims must be filed by taxpayers within 2 years from the relevant date.

Entities Eligible for GST Refund

The following entities are eligible for goods and services tax refund claim:

• Exporters engaged in export of goods/services.
• Suppliers making zero-rated supplies without tax payment.
• Taxpayers who have made excess tax payments due to calculation errors or clerical mistakes.
• Taxpayers who have received advance payments for supplies that were later cancelled or not made.
• Taxpayers having excess balance in electronic cash ledger.
• Taxpayers who are under an inverted duty structure.

Documents Required for GST Refund Claim

The following documents are required for claiming GST refunds:

• Refund application using prescribed GST form ‘Form RFD-01’.
• Tax invoices pertaining to refund claim.
• Bank account details for refund credit.
• Additional documents required for the refund.
• Proof of tax payment like challans.
• Export documents like Shipping Bills or Letter of Undertaking.

How to Claim GST Refund on Purchases?

The GST refund claim process is a completely online process. It involves completion of the following steps:

Step 1: As the first step, you need to log into the official GST portal using your credentials. Without logging in, you cannot claim goods and services tax refund.

Step 2: Now, after logging in, you need to fill in all the required details in the refund form RFD-01, i.e., the prescribed form for claiming refund of GST. In the form, mention all the necessary information like refund amount and refund reason. Additionally, you must submit all the supporting documents.

Step 3: After your form is completed, it must be submitted electronically on GST portal. In some cases, like for large refunds, an approval from a practicing Chartered Accountant may be necessary.

Step 4: After successful submission of the form, you will receive an Application Reference Number (ARN). The ARN is essential for checking GST refund’s status online.

Step 5: Within a period of 30 days, the tax authority will process the refund application. They might seek additional information or documents, if necessary. 

Step 6: Once the tax authority approves the refund, the refund money will be transferred to your bank account through NEFT/RTGS/ECS.

Conclusion

If the taxpayer has paid tax in excess, they can claim a goods and services tax refund. To claim this refund, the taxpayer must file Form GST RFD-01 – the prescribed form for claiming the refund. The form needs to be filed online via the GST portal. Along with the form, all the necessary supporting documents must be attached. 

Need assistance in GST return filing or in claiming GST refund? Connect with our GST experts at Registrationkraft as soon as possible!

You may like to read: What is Form 26AS of Income Tax

Frequently Asked Questions (FAQs)

Q1. How to check the status of GST refunds online?

For GST refund status check online, you must visit the official GST portal. Then, you must select the “Track Application Status” and then enter the ARN (Application Reference Number).

Q2. Which form needs to be filed for a GST-refund claim?

RFD-01 form needs to be filed for a GST-refund claim. This form must be filed online via the official GST portal.

Q3. What are the different stages of GST refund status?

The different stages of GST-refund status include Refund Application Filed, Bank Account Validation Pending at PFMS, Refund Application Acknowledged, Provisional Refund Order Issued and Refund Withheld.

Q4. What is the deadline for filing the RFD-01 form?

The deadline for filing the RFD-01 form is generally two years from the “relevant date”. This date depends on the specific ground for the refund claim. For instance, in the case of exporting goods, the “relevant date” would be the date the goods were dispatched or loaded. 

Q5. Can I revise the goods and services tax refund claim after submission?

No. Once you have filed the goods and services tax refund claim, you cannot revise it. In case you made any errors, you must file a new refund claim.

Q6. Who can claim a refund of GST?

It can be claimed by any GST-registered taxpayer who has paid tax in excess or has an excess ITC balance under various situations.