GST Refund

1. What is GST refund?

Usually when the GST paid is more than the GST liability a situation of claiming GST refund arises. The process is online and time limits have also been set for the same.

You can set-off excess payment of GST from liability arise in next month. So we suggest you to apply for GST refund only if you want to close your business.

2. When can the refund be claimed?

There are many cases where refund can be claimed. Here are some of them –

Excess payment of tax is made due to mistake or omission.

• Dealer Exports (including deemed export) goods/services under claim of rebate or Refund
• ITC accumulation due to output being tax exempt or nil-rated
• Refund of tax paid on purchases made by Embassies or UN bodies
• Tax Refund for International Tourists
• Finalization of provisional assessment
•  

3. How to calculate GST refund?

Let’s take a simple case of excess tax payment made.

Mr. B’s GST liability for the month of September is Rs 50000. But due to mistake, Mr. B made a GST payment of Rs 5 lakh.

Now Mr. B has made an excess GST payment of Rs 4.5 lakh which can be claimed as a refund by him. The time limit for claiming the refund is 2 years from the date of payment.

4. What is the time limit for claiming the refund?

The time limit for claiming a refund is 2 years from relevant date.

The relevant date is different in every case.

Here are the relevant dates for some cases –

Also if refund is paid with delay an interest of 24% p.a. is payable by the government.

5. How to claim GST refund?

The refund application has to be made in Form RFD 01 within 2 years from relevant date.

The form should also be certified by a Chartered Accountant.

You can file your returns very easily using ClearTax GST Software.

Sign-up now and try it yourself.