In usual cases, when the amount paid as GST is more than the GST liability, it creates a situation to claim GST refund. Once you have identified that you have a GST claim for a refund then you need to file your claim through GST Refund Form RFD-01. This form preferably should be prepared by a certified Chartered Accountant and this GST claim need to be made within 2 years of “relevant date” of the GST refunds application.
The different “relevant date” is defined for different GST Refund scenarios, which one can check on online tax site or with the Chartered accountant who is preparing your GST refund.
- 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 the 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 the 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 the date at which such tax was adjusted.
- When the person claiming a 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.
When the assessee submits his GST Refund form he gets an acknowledgement form GST RFD-02 which is auto-generated. This GST Refund form RFD-02 helps the assessee for any future reference for his GST claim and is sent to taxpayer’s email or phone number as 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.
While filing GST refunds, the taxpayer must submit a declaration that the GST refund amount will not be utilized or transferred to any third person or entity.
In case the GST refunds are of more than five lakhs then the taxpayers filing for the GST refunds must provide the additional documentation as an evidence that the said amount is paid by the taxpayer.