Refund of Unutilised Input Tax Credit for Zero-Rated Supplies: The GST Law provides multiple options to the zero-rated suppliers to claim a refund of taxes paid on the input side. One of the options is to export under bond or LUT and claim a refund of unutilised ITC. This article discusses zero-rated supplies, the conditions, requirements, and other important factors about such supplies that one needs to know and consider before filing for a refund of the unutilised input tax credit or ITC of zero-rated supplies.

• Introduction to Input Tax Credit (ITC) Under GST
• Introduction to Zero-Rated Supplies
• Refund of ITC Applicable for Zero-Rated Supplies
• Conditions for Claiming Refund of the Unutilised Input Tax Credit
• Steps to Follow for Filing Refund

Introduction to Input Tax Credit (ITC) Under GST

Input tax credit or ITC means that one can reduce the tax they have already paid on inputs while paying tax on output. Input tax credit concerning GST of a registered person is the CGST, SGST/UTGST, or IGST charged on any supply of goods or services or both made to him. It includes IGST charged on imports & tax payable under the reverse charge mechanism.

Suppose you are a manufacturer, supplier, agent, e-commerce operator, aggregator or any of the persons mentioned, registered under GST. Accordingly, you will be eligible to claim Input Credit for the tax paid by you on your purchases.

As GST is a single tax levied all over India (right from the manufacture of goods/ services till it reaches the end customer), the chain does not break, and everybody can benefit from the same, and there is a seamless flow of credit.

Introduction to Zero-Rated Supplies

Zero-rating means that the entire value chain, which is the input and output of the supply, is exempt from tax.

According to the GST Law, exports are meant to be zero-rated. The zero-rating principle is applied for exports and supplies to SEZ. The provisions are mentioned in Section 16(1) of the IGST Act, 2017, which states that “zero rated supply” means any of the following supplies of goods or services or both, which are –

1. Export of both goods and services or any one of the two; or
2. The supply of goods and services or any one of the two to a Special Economic Zone unit or a Special Economic Zone developer.

Note: All supplies need not be zero-rated.

Refund of ITC Applicable for Zero-Rated Supplies

The application filed for the refund of unutilised ITC on account of zero-rated supplies (with or without payment of tax under a bond or letter of undertaking) has to be accompanied by documentary evidence as may be prescribed to establish that refunds due to the applicant; and associated documentary or other evidence (including the documents mentioned in section 33 of the CGST Act, 2017) as the applicant may provide with to establish that the amount of tax and interest, if any, paid on such tax or any other amount paid concerning the refund claimed was collected from, or even paid by, him and the incidence of the tax and interest was not passed or given to any other person. The spirit of zero-rating is to make Indian goods and services competitive in the international market by ensuring that taxes do not get added to the cost of exports or export duties.

The purpose of zero-rating of exports and supplies to SEZ is sought to be achieved through the provision contained in Section 16(3) of the IGST Act, 2017, which mandates that a registered person making a zero-rated supply is eligible to claim a refund by the provisions as per section 54, CGST Act 2017, under any of the following options –

• He may supply goods and services or any one of the two under the letter of undertaking or a bond, subject to such conditions, safeguards and procedure as may be prescribed, without payment of integrated tax (IGST) and claim a refund of the unutilised ITC of CGST (central tax), SGST (state tax) / UTGST (Union territory tax) and IGST (integrated tax); or
• He may supply goods and services or any one of the two, subject to such conditions, safeguards and procedure as may be prescribed, on payment of IGST and claim a refund of such tax paid on goods and services or any of the two supplied.

Conditions for Claiming Refund of the Unutilised Input Tax Credit

As per section 54 of the Central Goods and Service Tax (CGST), 2017, the conditions required for claiming the refund for the unutilised input tax credit or ITC are discussed below.

Time Period

The refund application has to be made within two years from the relevant date.

What is a Relevant Date?

The Relevant Date, as explained under section 54 of the CGST Act, is summarised as follows –

1. If the goods get exported out of India where a refund of the tax paid is available regarding the goods themselves or for the inputs or input services used in those goods –
   1. if the goods are exported by land or road, the date on which the goods cross the border; or
   2. if the goods are exported by air or sea, the date on which the aircraft or the ship loaded with the goods leaves India; or
   3. if the goods are exported by the postal system, the date on which the goods are send-off by the post office concerned to a place outside India;
2. If the supply of goods is regarded as deemed exports where a refund of tax paid is available concerning the goods, the date on which the return relating to such deemed exports is furnished;
3. If the services exported out of India where a refund of tax paid is available in respect of services themselves or if the inputs or input services used for the services, the date of –
   1. receipt of payment in changeable foreign exchange (or in INR wherever permitted by the Reserve Bank of India), where the supply of services had been completed before the receipt of the payment; or
   2. issue of invoice, where the payment for the services was received in advance before the issue date of the invoice;
4. In the circumstances where the tax becomes refundable as a consequence of judgment, order, decree or direction of the appellate tribunal, appellate authority or any other court, the date of hearing of such judgment, order, decree or direction;
5. In the case of a refund of the unutilised ITC as per clause (ii) of the first proviso to sub-section (3), the due date for furnishing of return as per section 39 for the period in which the claim for the refund arises;
6. In the case where tax is paid under the provisions of the Act or the rules made thereunder, the date of adjustment of tax after the final assessment is taken;
7. For a person, except for the supplier, the date of receipt of goods or services or both by the person; and
8. The date of payment of tax on any other occasion.

Exceptions for the Refund

There shall be no refund of any unutilised ITC allowed under the following cases –

1. If the unutilised ITC is for GST paid on goods exported out of India, which are liable to excise duty.
2. If the supplier of goods has already availed duty drawback on the excise duty paid or claims the refund on the integrated tax paid on such supply.
3. No refund for closing stocks.

Documents Required as Evidence

As mentioned in rule 89(2), to fill the application under the sub-rule (1) of 89 of the CGST Act 2017, one must provide with any of the following documentary evidence as applicable to prove that a refund is due to the person applying for the same –

1. A copy of the order and the reference number of the order passed by the appropriate officer or an appellate tribunal or authority or any other court resulting in such refund or reference number of the payment of the amount as mentioned in section 107(6) and 112(8) claimed as refund.
2. A statement containing the date and number of shipping bills or export bills and the date and number of the appropriate export invoices if the refund concerns the export of goods.
3. A statement containing the date and number of invoices and the relevant Bank Realisation Certificates (BRC) or Foreign Inward Remittance Certificates (FIRC), if in a case where the refund is regarding the export of services.
4. A statement mentioning the number and date of invoices, the evidence concerning the endorsement as specified in the second proviso to sub-rule (1) and the details of payment, along with the proof of the same, made by the recipient to the supplier for authorised operations as defined in the Special Economic Zone (SEZ) Act of 2005, when the refund is on account of supply of services made to an SEZ unit or an SEZ developer.
5. A statement containing the date and number of invoices as provided in rule 46 along with the evidence regarding the endorsement mentioned in the second proviso to sub-rule (1) for the supply of goods made to a Special Economic Zone unit or developer.
6. A declaration mentioning that the SEZ unit or developer has not availed the ITC of the tax paid by the supplier of goods or services or both, in a case where the refund is on account of supply of goods or services made to an SEZ unit or an SEZ developer.
7. A statement containing the date and number of invoices and similar evidence mentioned in this case where the refund is concerning deemed exports.
8. A statement containing the date and number of the invoices received and issued during a tax period if the claim pertains to refund of any unutilised ITC under section 54(3) where the credit has accumulated owing to the rate of tax on the inputs being higher than the same on output supplies, other than nil-rated or fully exempt supplies.
9. A statement mentioning the details of the transactions considered intra-state supply but afterwards held to be inter-state supply.
10. A statement conveying the details of the claim amount regarding excess payment of tax.
11. The reference number of the concluding assessment order and a copy of the said order if the refund arises on account of the finalisation of the provisional assessment.
12. A declaration mentioning that the incidence of tax, interest or any other amount claimed as refund has not been passed or given to any other person, in a case where the refund amount claimed is not more than Rs. 2,00,000: But a declaration is not required to be provided for cases covered under clause (a)/(b)/(c)/(d)/(f) of section 54(8).A certificate as per FORM GST RFD-01 (Annexure 2) provided by a chartered or a cost accountant to the effect that the incidence of tax, interest or any other amount claimed as refund has not been passed on
13. to any other person in a case where the refund amount claimed is more than Rs. 2,00,000: But a certificate is not required to be provided for cases covered under clause (a)/(b)/(c)/(d)/(f) of section 54(8).

Refund on Provisional Basis

In some instances, on applying for a GST refund, the GST Officer grants Provisional Refund. There are some rules for Provisional Refund because the entire refund process takes a long time to complete. Therefore, a genuine claimant or exporter can face working capital shortfalls for the time being due to refunds getting delayed.

The refunds are then released temporarily to the extent of 90% before complete scrutiny of the application and associated records to solve this problem. Once the entire checking is done within the specified time limit, the final order for sanction or rejection (RFD-06 or RFD-08) replaces the provisional refund order (RFD-04). Consequently, the actual refund amount decided in the concluding order gets adjusted with the amount already refunded temporarily.

The Provisional Refund gets granted after the initial scrutiny of the application and documents by the Jurisdictional GST Officer. Provisional refund is applicable for Zero-rated Supplies, which include:

• Export of goods or services or both.
• Supplies made for SEZ units and developers.

In these cases, the GST officer grants the provisional refund to the extent of 90% of the refund claimed. The refund claimed will be excluding the amount of ITC that got adjusted, if any, on applying for the refund in RFD-01A/01. The issue of Form RFD-04 shall grant provisional Refund within seven days after giving the Acknowledgement in RFD-02. This Provisional Refund amount gets directly credited to the refund applicant’s bank account.

Note: The Provisional Refund is not granted if the applicant was prosecuted for the offence under any Indian law where the tax evaded is more than Rs. 2,50,00,000 anytime in the last five years preceding the tax period for which refund is claimed.

How is the Refund Amount Calculated?

The grant of refund in cases where the refund of accumulated Input Tax Credit (ITC) is of zero-rated supply is calculated as:

Refund Amount = (Turnover of zero-rated supply of services + Turnover of zero-rated supply of goods) x Net Input Tax Credit (ITC) ÷ The Total Adjusted Turnover

Where

1. The Refund Amount is the maximum refund that is admissible.
2. Net Input Tax Credit ITC is the input tax credit taken on inputs and input services during the relevant period, excluding the input tax credit taken for which refund is claimed under rule 89(4A) or 89(4B) or both.
3. Turnover of zero-rated supply of goods is the value of zero-rated supply of goods made during the relevant period of time without payment of tax under a letter of undertaking or a bond, other than the turnover of supplies regarding which refund is claimed as mentioned in rule 89(4A) or rule 89(4B) or both.
4. Turnover of zero-rated supply of services is the value of zero-rated supply of services made without payment of tax under a letter of undertaking or a bond, calculated as:
   1. Zero-rated supply of services is the total of the payments received during the relevant period for zero-rated supply of services and zero-rated supply of services where supply has been completed for which payment had been received in advance in any period before the relevant period lowered by advances received for the zero-rated supply of services for which the supply of services was not concluded during the applicable period.
5. The Total Adjusted Turnover is the turnover in a State or a Union territory, as defined under clause (112) of section 2, which excludes –
   1. The value of all other exempt supplies other than the zero-rated supplies.
   2. The turnover of supplies regarding which refund is claimed during the relevant period as per rule 89(4A) or 89(4B) or both (if any).
6. The Relevant Period is the period for which the claim is filed.

Steps to Follow for Filing Refund

Using the online GST Portal, the application for refund of unutilised input tax can be filed online by following the below steps.

Step 1: Open the GST Portal and login into your GST account.

Step 2: Navigate to Services, then go to Refunds followed by Application for Refund.

Step 3: Select the Refund of ITC option on Export of Goods & Services without Payment of Integrated Tax or on account of supplies made to SEZ unit/SEZ developer (without tax payment) as required.

Step 4: Select the relevant financial year and the month for which a refund is requested, and then click on Create button. A refund application can only be made once a proper GST return has been filed for that period.

Step 5: Enter the details relevant to the export of goods or services or both as required under Statement 3. You can upload the JSON file generated by your software or use the department’s offline utility.

Step 6: Enter these amounts in the form –

• The turnover of the zero-rated supply of goods and services.
• The total adjusted turnover.
• The total input tax credit accessible for Cess.

The online system will automatically calculate the maximum amount of refund based on the figures entered and the net ITC available in the account.

Step 7: Enter the breakup for a refund requested under Integrated Tax, Central Tax, State/UT Tax & Cess.

Step 8: Select the bank account that is requested for the refund.

Step 9: Click on Proceed and submit your application using EVC or DSC.

Process of Registration Under GST: Through registration under the GST, a person who pays tax can register themselves under the GST if they are running a business. After they have successfully registered, they will receive a unique registration number. The number is unique to all taxpayers, and it is called the Goods and Services Tax Identification Number of GSTIN. The number is a 15 digit long number that the central government assigns to all taxpayers after obtaining their registration.

The Constitution of India, under Section 279A, formed the GST council. The Union finance minister, the union minister of state revenue, and the union minister of tax and finance are the group of people who form the GST council. All the respective laws and regulations that apply to GST registration for a business will be on their respective central and state websites. The law came into being on 1st July 2017 to remove all other forms of indirect taxation in the country. GST applies to all records of services and products that have been manufactured and produced in our country. It also applies to the freelancers according to the new labour law amendments.

Since GST came into being, all other forms of taxes, such as value-added tax, entertainment tax, sales tax, etc., are combined under Goods and Services tax. There is a specific percent of the amount that people charge under the GST for every step in the supply chain. Since GST registration is online, businesses would not have to go offline to make their registration under the GST.

If a person or a business operates from more than one state, they will have to get a separate registration for each operating state. We can understand if every company has to register under the GST by understanding the GST registration procedure in detail.

• Who is eligible to register under the GST?
• What are the documents people require to register under the GST?
• Categories of GST Registration
• Procedure for GST Registration
• What is the penalty for not filing under GST?
• Benefits of registering under the GST
• What is ITC under the GST regime?
• Tax rates for GST Registration

Who is Eligible to Register under the GST?

Suppose a person’s business supplying goods has a turnover of Rs. Forty lakhs or more in a financial year have to register as an individual taxable person. Though the threshold limit for people with businesses in the north-eastern states such as Jammu and Kashmir, Himachal Pradesh, and Uttarakhand is Rs. 10 lakhs, the turnover limit is of Rs. 20 lakh for individual category states and Rs. 10 lakh for service providers.

Certain businesses have to mandatorily register under the GST irrespective of their turnover if they belong to any of the following categories.

1. Input service distributor or ISD and Casual taxable person
2. Non-resident taxable person
3. Interstate goods and services supplier
4. Goods supplier through an eCommerce portal or online portal
5. Any category of the service provider
6. Obligation to pay tax under the reverse charge mechanism
7. Online data access and retrieval service provider
8. TDS or TCS deductor

What are the Documents People Require to Register Under the GST?

People who have to register under the GST need to have the following documents.

1. Permanent Account Number or PAN of the applicant
2. Proof of business registration or incorporation certificate
3. Copy of Aadhaar card
4. Address proof and identity of promoters and director with their recent photographs
5. Authorisation letter or a board resolution for authorised signatory
6. Bank account statement or cancelled cheque for proof
7. Digital signature

Categories of GST Registration

There are various categories of taxpayers according to their GST registration and their jobs. Here are the types of GST registrations below.

Normal Taxpayers: Normal taxpayers are the majority of businesses in India. These are the businesses whose turnover is more the Rs. Forty lakhs in one financial year. They have to register as an average taxable person. But, if the threshold limit is less than that according to their residential states, they have to register if their turnover is more than Rs. 10 lakhs.

Casual Taxable Person: If people have occasional or seasonal businesses, they can register their business under the GST for casual taxable persons. They can make a deposit that is equal to their GST liability for the occasional business operations. The tenure for them is three months, but they can apply for extensions and renewals for their businesses.

Non-residential Taxable Person: People who live outside India but occasionally supply their goods or services as agents or in other capacities to the Indian residents have to file for their business registration under this category. They need to pay a deposit equal to the standard GST liability during their GST active tenure. The typical term for such people is three months, but they can also extend or renew their registrations if they want.

Composition Registration: Suppose a business has an annual turnover of up to Rs. One crore, then they have to register under the Composition scheme. Companies have to pay a fixed amount of GST in this category regardless of their actual turnover amount.

Procedure for GST Registration

Obtaining a GST registration is easy and free. People can do it online at the comfort of their homes through the official GST portal. A taxpayer who has to register for the normal registration can visit their site and fill up form GST REG 1.

Part A

1. Step 1: Visit the GST portal.
2. Step 2: Click on the registration option under the services tab and then click on new registration, i.e., Services> Registration> New registration.
3. Step 3: The application form has two parts- part A and part B. According to the type of taxpayer from the ‘I am a’ drop-down list, people have to select the’ taxpayer’ option.
4. Step 4: Now, they have to select the state and district to which they belong to and want a registration from the ‘State/ UT and District’ drop-down list.
5. Step 5: They can enter the Legal Name of the Business in the field with the same title and enter the entity’s name according to the PAN database documents.
6. Step 6: They can input the PAN of the business or the PAN of the proprietor in the Permanent Account Number field.
7. Step 7: Next comes the email address field. They have to mention a functional email address of the primary authorised signatory.
8. Step 8: They have to input their valid mobile number if they are the primary authorised signatory.
9. Step 9: They have to enter the captcha and proceed to click on the ‘proceed’ button.
10. Step 10: Once they have completed all the above steps, they will move on to part B of the form. Here, they will receive an OTP and after inputting it, they will become verified, and their information will be saved so far. They will then receive a temporary reference number or TRN that they will receive in their registered email address and their mobile number.

Part B

1. Step 1: Click on services> Registration> New registration and then select the temporary reference number or TRN button to log into the site using the number.
2. Step 2: You have to enter the TRN you generated in the TRN field and type the captcha text you can see on the screen. After that, click on ‘proceed.’ TRN is a temporary reference number and it will not be the same after completing the process. But people need it for the next steps of registration. It is important to note it carefully.
3. Step 3: Enter the OTP you got on your mobile and email and input it on the verify OTP page and click on the ‘proceed’ button.
4. Step 4: You will be able to see the ‘My Saved Application Page,’ and you can click the action column and select the edit button.
5. Step 5: Now, you have to go to the top of the page and click on the registration application form with ten tabs opened. Then click on each of these tabs and enter the details such as business details, partner detail, authorised signatory, principal and additional places of business, goods and services details, state information, verification, and Aadhaar card authentication.
6. Step 6: Click on ‘save and continue,’ and then your application will get submitted. You have to sign it digitally using a DSC and then click to proceed.
7. Step 7: Finally, after submission, you will get an Application Reference Number or ARN in your email or phone number, and you can confirm your registration.

What is the Penalty for not Filing Under GST?

If a taxable business does not register under the GST mandatorily, then they will have to pay a penalty of 10% of the tax amount, which can be up to Rs. 10,000. Therefore, all businesses have to register under the GST mandatorily if they fall under the following categories.

1. Businesses that supply goods with a turnover of over Rs. 40 lakh in one financial year must register under the GST. If they belong to J and K, Himachal Pradesh, and Uttarakhand states, the turnover limit is Rs. 10 lakh.
2. Service providers with a turnover of Rs. 20 lakh in a financial year and Rs. 10 lakh for the special states
3. Causal table people or input service distributors or ISD: Every causal taxable person has to go for the process of GST registration.
4. Non-resident taxable people: People who are not Indians also have to register for GST if they trade their goods or services to the people of India.
5. Inter-state goods and service supplier
6. E-commerce portal supplier of goods: All eCommerce aggregator has to consider the registration of GST are a mandatory document. If such an eCommerce entity does not produce a turnover of more than Rs. 20 lakh in one financial year, then they do not have to make such a registration compulsorily.
7. Any other service provider
8. Liable to pay tax under the reverse charge mechanism: Any e-commerce entity has to apply for the GST registration but any business whose turnover is less than Rs. 20 lakh per financial year does not have to register under the GST.
9. TCS or TDS deductor
10. Online data access or retrieval service provider: Companies that provide database access or any form of streaming system to a person residing in India have to register to GST as per the requirements.

Furthermore, if a business operates in two different states, they will have to obtain separate registrations for each state of their functioning. A person can also apply for multiple registrations within a state if require. Still, the government has removed the procedure of allocating numerous registrations for different businesses to operate efficiently. Usually, a company can get multiple registrations for GST under a state if they have separate business verticals and different products from one another.

The CBIC has issued a notification stating that if a business entity does not file for the GST return, then they have to face strict penalties. The defaulter will have their back accounts attached. Furthermore, they will have to pay Rs. 100 per day of non-compliance according to CGST and SGST. Any delay will lead to Rs. 200 fine according to Section 122 of the CGST Act for non-compliance. Other strict penalties can also apply according to their situation.

Benefits of Registering Under the GST

There are multiple benefits of registering under the GST, which are applicable for regular registered businesses such as the following.

1. Operate business without restrictions in various states.
2. Can avail of input tax credit
3. The benefits for composition dealers if they register under the GST are as follows.
4. Lower impact on working capital
5. Limited compliance as compared to other categories of taxpayers
6. The benefits for businesses that have voluntarily opted in for GST registration are as follows.
7. Operate business without restrictions in various states
8. Can avail of the input tax credit
9. Competitive advantages in comparison to other businesses.

On the other hand, businesses registered with the GST can avail of other benefits as well. They will get recognised as an official business entity in the eyes of the law. The public and the consumers can also recognise them as a legal business. They will get appropriate accounting cycles, other governmental incentives, lower tax rates, double taxation, reliefs and exemptions from double taxations, e-way bills, and much more. It is best for business owners to register themselves under the GST.

What is ITC under the GST Regime?

ITC or input tax credit can allow a business person to pay less on taxes on their inputs of a specific amount of products. They will get benefits since they will have to pay reduced tax liabilities on the products.

Therefore when a business usually buys some form of product, they would have to pay a specific amount of tax when they receive the product from the seller who has a GST registration. When the business pays the fixed amount of tax, they can add the same to the taxes they spent at the time of purchase. Hence, ITC allows the registered business to consider adjustments on taxes.

Tax Rates for GST Registration

The government has brought out various tax rates for the GST registration. They can change according to the requirements of the government. But here is the complete list of the GST tax rates that the government can levy as follows.

1. Bare Necessities: The government does not levy any tax or GST for basic necessities and amenities.
2. Household Necessities and drugs: People have to pay a 5% tax on basic household necessities and medicines.
3. Computer products and processed foods: The government levies a rate of 12% from such products.
4. Hair oil, raw materials, capital goods, and other forms of industrial products: On such items, people have to pay an 18% tax on consumer goods and capital goods. These are required for various industrial processing.
5. Luxury items: It has the highest rate of tax. People have to pay a 28% tax for luxury goods. These can be cars and other products that fall under this category.

Refunds GST: GST is all about enabling a fast and efficient flow of funds ultimately to the endpoint. To encourage such a continuous integration, the government must help arrange for a hassle-free refund procedure.

The prevailing tax regime is complicated, and that might take several months, if not years, to receive full refunds from the government’s coffers.

Current GST return submission necessitates that, after reporting GSTR-1 to report sales, one should essentially complete GSTR-3B to declare the ITC and make appropriate GST payments every month. If a refund is necessary or appropriate, it can be legally obtained by filing the applicable refund formalities.

When the GST compensated surpasses the GST obligation, the particular scenario of individuals seeking a GST refund emerges. To prevent misunderstanding, the practice of obtaining a refund under GST is uniform. The procedure is done digitally, and time constraints have been enforced.

There’ll be no returns if the sum is lesser than Rs. 1,000/-.

• What are the grounds under which a refund can be procured?
• What are the grounds under which a refund cannot be procured?
• What is the final deadline for requesting a refund?
• What is the application procedure’s mode?
• What are the documents for submitting the return?

What are the Grounds Under Which A Refund Can Be Procured?

A refund claim may originate as a consequence of the following:

• Export of goods or services following deduction of tax.
• Delivery of items and/or services to SEZ units and independent developers in terms of tax obligations.
• Export of goods or services without tax payment on a bond/letter of undertaking
• Supply of goods or services or perhaps both to SEZ units and developers under Bond/Letter of Undertaking, tax-free.
• Tax refunds on purchases completed by UN Agencies, Embassies, and others.
• Refund due to Appellate Authority, Appellate Tribunal, or any court’s ruling, judgment, order, or instruction.
• Refund of accrued Input Tax Credit due to duty structure inversion.
• Provisional evaluation has finalized.
• In electronic cash accounting, there is an additional balance.
• Excessive tax settlement.
• Refunds of GST paid on products bought in India and sent overseas to foreign tourists at their exit from India.
• Return of taxes collected on a commodity that is not provided, in whole or in portion, and no billing was sent.
• Repayment of CGST and SGST paid by defining the supply as intra-State and then identifying it as inter-State, and conversely.
• CSD Canteens will get a return.
• Refund considering an adjudicating investigator’s inquiry or recommendations.
• Foreign or international visitors who pay GST are liable for a return.

What are the Grounds Under Which A Refund Cannot Be Procured?

Refunds are not permitted in the following circumstances:

• In the event of products or services that the council has recognized in this respect.
• Refund of untapped input tax credit in cases when goods exported from India are liable to customs duty.
• An underutilized input tax credit if the service provider of goods or services, or perhaps both, files a reduction on centralized taxation or a return of the combined taxes collected on such supply.

What is the Final Deadline for Requesting A Refund?

The time restriction for seeking a refund is two years from the date of the transaction.

In each particular circumstance, the relevant date is fundamentally different. For some occurrences, the relevant dates are as described in the following:

• In the event of GST overpayment, the relevant date is the precise day of payment.
• The relevant date for the export or deemed exporting of services or goods is the date of dispatch/loading/passing the state border.
• The relevant date for the export or deemed exporting of services or goods is the date of dispatch/loading/passing the state border.
• Likewise, when services are performed subsequent to the acquisition of a prepayment, the relevant date is the billing date.
• When the supply incorporates activities and is completed before cash is transferred, the relevant date is the payment delivery day.

What is the Application Procedure’s Mode?

At present, the entire return procedure is completely electronic.

All return submission and verification phases must be accomplished electronically.

What are the Documents for Submitting the Return?

• The refund form must be filed in Form RFD-01 (which must be validated by a Chartered Accountant or a Cost Accountant) before two years of the “relevant date.”
• Following the completion of the application, an acknowledgement receipt in Form RFD-02 will be auto-generated for reference purposes and communicated by email and Text.
• If the program identifies any glitches in the return submission Form, RFD-03 will be authorized to the taxpayer to rectify his online application.
• If the individual making the return claim is a United Nations legal entity, Consular, or a diplomatic embassy, the return request must be completed within 90 days of the end of the term in which the goods or services were acquired. Form RFD-10 must be utilized for the submission.
• RFD-07 is a show-cause warning issued by the government when a refund claim is outright rejected.
• The payment advice is RFD-08.
• RFD-09 is an obligation for interest on missed fees that is used in the situation of late payments.