After making the necessary GST payments, you will be able to know whether you will receive a refund or not. If eligible, you will have to file for the refund using the GST refund Form RFD-01. However, as simple as it may sound, the GST refund process is technical. Moreover, a delay or incorrect filing will lead to a rejection of your refund request. Thus, follow the terms and conditions of GST refund and file the form accurately and on time.
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What is the GST refund process?
In order to simplify the process of GST refund, the income tax authorities have translated it into an online process. This means you can claim a refund online using your registered GST account anytime within 2 years from a relevant date. However, the relevant date differs based on the condition of your claim. So, abide by the GST refund dates as mentioned below, to claim your refunds on time.
If you are claiming a refund for excess payment of GST, your date of payment becomes the relevant date.
If you are claiming a refund for export or deemed export of goods or services, the date of despatch/loading/passing the frontier becomes the relevant date.
If ITC accumulated as output is tax exempt or nil, the last date of financial year to which the credit belongs becomes the relevant date.
If you pay excess basis the finalisation of provisional assessment, date on which tax is adjusted becomes the relevant date.
Additional read: What taxes has GST replaced?
When can the refund be claimed?
Below are the instances when a GST refund can be claimed–
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Due to mistake or omission, excess tax is paid.
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Dealer and deemed export goods or services under the claim of refund or rebate
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Purchases made by UN bodies or embassies can be refunded
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ITC accumulation due to output being tax exempt or nil-rated
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Finalisation of provisional assessment
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International tourists get a tax refund
What is the time limit for claiming the refund?
| Reason for claiming GST Refund |
Relevant Date |
| Excess payment of GST |
Date of payment |
| Export or deemed export of goods or services |
Date of dispatch/loading/passing the frontier |
| ITC accumulates as output is tax exempt or nil-rated |
Last date of financial year to which the credit belongs |
| Finalisation of provisional assessment |
Date on which tax is adjusted |
How to calculate GST refund
Computing your GST refund is easy and you simply need to subtract the excess you have paid against the total dues you were supposed to pay. This simple calculation will reveal the amount you have been charged or have paid in excess. Once you know the amount you can claim a refund within the refund processing timeline based on the type of claim you are making.
Keep in mind that you will receive Form RFD-03 in case the authorities find any discrepancy in your refund application. Otherwise, when you file GST refund and it gets verified successfully, you will receive Form RFD-02 as an acknowledgement.
Thanks to online process, the present GST refund process is effective and highly methodical. Following the process elaborated above will help you receive refunds directly in your bank account within 30 days from the day you apply. However, be very particular about the details you mention in the refund form, as once your application is received, it goes through rounds of audit and scrutiny. Steer clear of errors and submit your GST refund application within its deadline to receive faster refunds.
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