Refund Procedure:

a)General procedures on submission of application

• Refunds under GST is application based and subject to verification. Application to be submitted through GSTN Portal with provision for uploading supporting documents.

• Any person claiming refund of any tax or interest shall make application to the proper officer.(S.38(1))

• The application form shall be correct and complete and will be prescribed in the Rules.S.38(5) Expln.

• The application shall be made before expiry of two years from the relevant date.

• Relevant dates for different scenarios 38(B)

 B)   Documents to be accompanied with the Application form –

General documents which will be prescribed in the Rules .

But the following documents for various scenarios are mentioned in the Business Process document.

For exports refund application to be submitted by the applicant. There will be a provision to upload scanned copies wherever possible

1.Shipping Bill (Export Promotion copy);

2.Mate’s Receipt / Transporter’s Challan (in case of export by road);

3.Export invoice;

4.Packing list;

5.Bill of Lading/ Airway Bill;

6.Bank Realization Certificate (BRC).

7.In case of services, invoice and BRC.

 

c) Verification

The verification will be mostly online.

The Import Export code (IEC) details captured at the time of issuance of GSTN can be verified with DGFT online. As proposed, if the linkage with the customs network ICEGATE is worked out, shipping bill which includes relevant details from the export invoice and packing list can be verified online.

BRC-Since the exporter has a time period of one year from the date of export for remitting of export proceeds, BRC may not be available at the time of refund application. But if export proceeds are received in advance BRC may be available. Thus, in case of BRC refund should be subject to submission of BRC details within a period of maximum one year or as extended by RBI. e-BRC module of DGFT will be integrated with GST module.

If export is done on payment of duty, the uploaded export invoice can be verified online for verification of payment of duty.

If refund is claimed on GST paid on inputs used for exported goods, utilization for exports is required to be verified. For this, The GST paid character of purchases can be matched with supplier and exporter’s return. No separate documents is necessary. As regard to utilization of inputs for export,

• A simple formula will be prescribed in the rules may be based on proportionate credit based on export turnover/total turnover.

• A declaration can be obtained from the exporter regarding Utilization of inputs in exported goods.

• Refund shall be granted within 90 days from the date of application.Sec.38(5)

• For export refunds to notified category of dealers, 80% refund can be granted before verification subject to such conditions and restrictions.