Oct 18, 2017
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Refund under GST: Application of tax, interest, penalty, fees or any other amount

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Refund under GST:

Refund under GST article talks about application for refund that required to file for tax. And also interest, penalty, fees or any other amount.

However, Refund under GST article further talks about refund with reference to RULE-1. Application for refund of tax, interest, penalty, fees or any other amount under Revised return rules,2017.

Furthermore , Refund under GST article mainly talks about the rules that are revised by the GST council.

Under GST , the council has clearly stated the types and forms so required to file the return.  Thus only registered person has right to claim. And filed for return under GST India.

 

RULES

FORM

CONTENT WITH REFERENCE

1.Application for refund of tax, interest, penalty, fees or any other amount

 

FORM GST RFD-01

1.       Any person, except the persons covered by notification issued under section 55, claiming

2.       In case of zero-rated supply of goods or services or both without payment of tax under bond or letter of undertaking.

In accordance with the provisions of sub-section (3) of section 16 of the Integrated Goods and Services Tax Act.

3.       Refund of input tax credit shall grant as per the following formula:

Refund Amount =

(Turnover of zero-rated supply of goods + Turnover of zero-rated supply of services) x Net ITC / Adjusted Total Turnover

 

Rule- 1. Application for refund of tax, interest, penalty, fees or any other amount

(1) Any person, except the persons covered by notification issued under section 55, claiming refund of any tax, interest, penalty, fees or any other amount paid by him, may file an application in FORM GST RFD-01 electronically through the Common Portal either directly or through a Facilitation Centre notified by the Commissioner:

Provided that any claim for refund relating to balance in the electronic cash ledger in accordance with the provisions of sub-section (6) of section 49.

It may also be made through the return furnished for the relevant tax period in FORM GSTR-3, FORM GSTR-4 or FORM GSTR-7, as the case may be:

Further that in case of export of goods, application for refund shall be filed only after the export manifest or an export report, as the case may be, is delivered under section 41 of the Customs Act, 1962 in respect of such goods:

Provided also that in respect of supplies to a Special Economic Zone unit or a Special Economic Zone developer, the application for refund shall file by the supplier of goods after such goods have admit in full in the Special Economic Zone for authorized operations, as endorsed by the specified officer of the Zone:

Also states that in respect of supplies to a Special Economic Zone unit or a Special Economic Zone developer application is filed.

The application for refund shall file by the supplier of services along with such evidence regarding receipt of services for authorized operations as endorsed by the specified officer of the Zone:

Provided also that in respect of supplies regarded as deemed exports, the application shall file by the recipient of deemed export supplies:

Provided also that refund of any amount, after adjusting the tax payable by the applicant out of the advance tax deposited by him under section 27 at the time of registration, shall be claimed either in the last return required to be furnished by him or only after furnishing of the said last return.

(2) The application under sub-rule (1) shall be accompanied by any of the following documentary evidences, as applicable, to establish that a refund is due to the applicant:

(a) the reference number of the order and a copy of the order passed by the proper officer or an appellate authority or Appellate Tribunal or court resulting in such refund or reference number of the payment of the amount specified in sub-section (6) of section 107 and sub-section (8) of section 112 claimed as refund;

(b) a statement containing the number and date of shipping bills or bills of export and the number and date of relevant export invoices, in a case where the refund is on account of export of goods;

(c) a statement containing the number and date of invoices and the relevant Bank Realization Certificates or Foreign Inward Remittance Certificates, as the case may be, in a case where the refund is on account of export of services;

(d) a statement containing the number and date of invoices as prescribed in rule Invoice.1 along with the evidence regarding endorsement specified in the third proviso to sub-rule (1) in case of supply of goods made to a Special Economic Zone unit or a Special Economic Zone developer;

(e) a statement containing the number and date of invoices, the evidence regarding endorsement specified in the fourth proviso to sub-rule (1) and the details of payment, along with proof thereof.

Need to be made by the recipient to the supplier for authorized operations as defined under the Special Economic Zone Act, 2005, in a case where the refund is on account of supply of services made to a Special Economic Zone unit or a Special Economic Zone developer:

(f) a statement containing the number and date of invoices along with such other evidence as may be notified in this behalf, in a case where the refund on account of deemed exports;

(g) a statement in Annex 1 of FORM GST RFD-01 containing the number and date of invoices received and issued during a tax period in a case where the claim pertains to refund of any unutilized input tax credit under sub-section (3) of section 54 where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies, other than nil rated or fully exempt supplies;

(h) the reference number of the final assessment order and a copy of the said order in a case where the refund arises on account of finalisation of provisional assessment;

(i) a declaration to the effect that the incidence of tax, interest or any other amount claimed as refund has not passed on to any other person, in a case where the amount of refund claimed does not exceed two lakh rupees:

Provided that a declaration not required to furnish in respect of cases covered under clause (a) or clause (b) or clause (c) or clause (d) of sub-section (8) of section 54;

(j) a Certificate in Annex 2 of FORM GST RFD-01 issued by a chartered accountant or a cost accountant to the effect that the incidence of tax, interest or any other amount claimed as refund has not passed on to any other person, in a case where the amount of refund claimed exceeds two lakh rupees:

Provided that a certificate not required to furnish in respect of cases covered under clause (a) or clause (b) or clause (c) or clause (d) of sub-section (8) of section 54;

Explanation.– For the purposes of this rule,

(i) in case of refunds referred to in clause (c) of sub-section (8) of section 54, “invoice” means invoice conforming to the provisions contained in section 31 ;

(ii) where the amount of tax has recover from the recipient, it shall deem that the incidence of tax has pass on to the ultimate consumer.

(3) Where the application relates to refund of input tax credit, the electronic credit ledger shall debit by the applicant in an amount equal to the refund so claimed.

(4) In case of zero-rated supply of goods or services or both without payment of tax under bond or letter of undertaking. Then its due to the provisions of sub-section (3) of section 16 of the Integrated Goods and Services Tax Act. However, refund of input tax credit shall grant as per the following formula:

Refund Amount = (Turnover of zero-rated supply of goods + Turnover of zero-rated supply of services) x   Net ITC                                                                                                                                                                                                                                             Adjusted Total Turnover

Where,-

(A) “Refund amount” means the maximum refund that is admissible;

(B) “Net ITC” means input tax credit availed on inputs and input services during the relevant period;

(C) “Turnover of zero-rated supply of goods” means the value of zero-rated supply of goods made during the relevant period without payment of tax under bond or letter of undertaking;

(D) “Turnover of zero-rated supply of services” means the value of zero-rated supply of services made without payment of tax under bond or letter of undertaking.

While , calculated in the following manner, namely:-

i)  Zero-rated supply of services is the aggregate of the payments received during the relevant period for zero-rated supply of services.

ii) And zero-rated supply of services where supply has complete for which payment had receive in advance in any period prior to the relevant period reduced by advances received for zero-rated supply of services for which the supply of services has not complete during the relevant period;

(E) “Adjusted Total turnover” means the turnover in a State or a Union territory, as defined under subsection (112) of section 2, excluding the value of exempt supplies other than zero-rated supplies, during the relevant period;

(F) “Relevant period” means the period for which the claim has file.

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Renuka is a Final Year LL.B. student at Siddharth College of Law. She has done her Bachelors in Banking & Insurance and has also completed her Masters in Business Management . She likes to participate in legal workshops and Moot Courts. Besides her interest in law, she has a keen aptitude for legal research and is good at putting her analysis into words.

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