Refund In GST

FOR ZERO RETED SUPPLY and Unutilized ITC

GST was introduced on 1st July 2017, since then we are filing different returns and two years have already been passed. There is a provision that we can file for GST refund within two year from relevant date, so this financial year may be the last opportunity to claim refund for financial year 2017-18. Export of goods or services is treated as a zero-rated supply. An exporter dealing in zero-rated supplies can make exports with or without payment of tax. The exporter may supply goods or services or both after paying the amount of IGST and can claim a refund of the amount of tax paid on such goods or services or both. If the exporter made zero rated sale without paying tax then he must have the Letter of undertaking (LUT). After paying the tax he can claim refund for the same within 2yrs from the relevant dates and same for the unutilized ITC lying in his credit ledger by filing Form RFD-01.

Following condition to be satisfied for Export:-

The supplier of service is located in India,
The recipient of service is located outside India,
The place of supply of service is outside India,
The payment for such service has been received by the supplier of service in convertible foreign exchange or in Indian currency (wherever approved by RBI).
The supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8.

For claiming refund of supply of goods/Services provided to SEZ. Following conditions to be satisfied :

Goods: - After such goods have been admitted in full in the SEZ authorised operation. Services: - Along with such evidence regarding receipt of service for authorised operation.

Relevant date to be considered for counting of two years.

1. In the case of Goods Export:
By Sea/Air	The Date when Ship/Aircraft leaves India
By Land	The Date when such goods Pass the Frontiers
2. In the case of Deemed Export of Goods:	The Date when the return relating to such deemed export is furnished.
3. In the case of Service Exported:
(i) If the supply of service has been completed prior to the receipt of such payment:	The Date of Receipt of Payment in foreign exchange.
(ii) If the payment received in advance prior to the date of issue of the invoice:	The Date of Issue of Invoice.
4. In the case where refund arising as a consequence of judgment, decree, order etc.:	The Date of Communication of Such Order.
5. In the case of refund of unutilized ITC:	The end of the financial year in which such claim for the refund arises.
6. In the case refund arising due to the provisional payment of Tax:	The Date of Adjustment of tax after Final Assessment.
7. In the case refund arising to any person other than Supplier:	The Date of receipt of goods/service by such person.
8. In any other case	The Date of Payment of Tax.

Documents required while claiming refund in different cases:-

Unutilized ITC	Copy of form RFD 01 A filed on common portal
	Copy of Statement 3 A of Form RFD 01 A generated in common portal
	Copy of Statement 3 of Form RFD 01 A
	Invoices with respect to input and output services/td>
	BRC/FIRC for export of services
	BRC/FIRC for export of services
	Undertaking /Declaration in Form RFD 01 A
Service exported	Bank Realization Certificate (BRC)/Foreign inward remittance certificate (FIRC) and Invoice would be required before sanction of the refund of GST paid on inputs (input services) / rebate of GST paid on exported services.
Goods exported	A statement containing the number and date of shipping bills or bills of export and the number and the date of the relevant export invoices.

About the author

Harshit Singhal is a CA Student and is into his first year of articleship trying to gain expertise in the GST domain.

Refund In GST

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