About Income Tax:
Refunds in GST can be claimed in the following scenarios
Excess balance in Electronic Cash Ledger
On Account of Export of Services -With Payment ofTax
On Account of Supplies made to SEZ Unit/ SEZ Developer (With Payment of Tax)
Exports of Goods / Services - Without Payment of Tax, i.e., ITC Accumulated)
ITC Accumulated due to InvertedTax Structure (clause (ii) section 54(3))
On account of Supplies made to SEZ Unit/ SEZ Developer (Without Payment of Tax)
On account of Refund due to Deemed Export
On account of Assessment /ProvisionalAssessment / Appeal
Excess payment of tax
Any other reason
Refunds cannot be claimed in the following scenarios
No Refund of Unutilized ITC is allowed in cases where the Goods are exported out of India are subjected to Export Duty. ( Section54(3)).
No refund of ITC is allowed if the supplier of the Goods or Services or both avails of drawback or refund of IGST paid on such supplies.
No refund on closing stocks ( accumulated ITC on account of relatively low volume of output supplies to inward supplies).
What is process of filing refund application?
File for GST RFD 01 along with the required documents in Annexure 1 to the form.
The assessee shall receive an acknowledgement in GST RFD 02 if there are no problems with the application in GST RFD 01. In case of any issues, it will be communicated in GST RFD 03.
The Proper Officer may pass an order in GST RFD 04 sanctioning the amount due within 7 days from the date of the acknowledgement if the Proper Officer is prima facie satisfied.
The Proper Officer shall pass an order for refund in GST RFD 06 and issue a payment advice in form GST RFD 05 post which the amount automatically gets credited to the bank account of the registered person.
The order has to be passed within 60 days from the date of receiving a complete application.
In case of export supplies, the Act also provides for a provisional refund of 90% of the refund claim within 7 days of the date of the acknowledgement provided the supplier was not prosecuted in the 5 years immediately preceding the refund period.
