Refund in GST :
♦ Claiming refund of any tax and interest paid on such tax or any other amount paid by him, may make an application in that regard to the proper officer of before the expiry of two years from the relevant date .
♦ Relevant date is broadly as follows – (a) export of goods and supplies to SEZ – date of export (b) deemed export – date of return (c) export of services – date of receipt of payment in foreign exchange (d) refund of unutilized input tax credit – the end of the financial year in which such claim for refund arises.
♦ Refund (except in case of exports and supplies to SEZ) will be subject to doctrine of unjust enrichment, i.e. refund only if burden of tax has not been passed to another person.
♦ Amount claimed as refund should be shown as ‘amount receivable’ in the balance sheet.
♦ If tax amount is refunded by cheque or credit note to recipient, there cannot be unjust enrichment.
♦ Refund of unutilized input tax credit only in case of (a) exports and supplies to SEZ or (b) in cases where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (inverted tax structure) but not in case of fully exempt goods or services.
♦ In case of exports and supplies to SEZ (zero rated supply) refund will be on ratio basis as per formula given in Refund Rules.
♦ Refund is also permissible in case of deemed exports. The refund application has to be filed by recipient of supplies.
♦ Claim for refund of unutilized input should contain details as specified in Annex 1.
♦ IGST paid on any supply of goods to outbound tourist shall be refunded.
♦ Refund application should be filed electronically in form GST RED-1 with specified documents and details.
♦ Refund for balance in electronic cash ledger should be made through return.
♦ Deficiencies in refund claim will be intimated in form GST RED 3.
♦ If refund is to be rejected, opportunity of personal hearing shall be given