GST | Refund of IGST paid on Export of Goods and Services

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                                GST | Refund of IGST paid on Export of Goods and Services

Conditions to be fulfilled by taxpayers for getting the Refund of IGST paid on Export of Goods and Services

1. GSTR-1 for the month of July or Table 6A of GTSR-1 for the following month must be filed.since filling of GSTR-1 for August, September, October, November and following months are about to enabled very soon,
   filling of Table 6A of GTSR-1  would be discontinued after filling GSTR-1.
2. Shipping Bill no, Amount and Date should be mentioned in Table 6A of GSTR-1 and IGST amount should also be mentioned.
3. GSTR3B for the related tax period should have been filed.
4. ISGT amount to be paid should be shown under table 3.1(b) of GSTR3B, which must be equal or greater than the ISGT amount shown to be paid under Table 6A of GSTR-1.
5. The Invoice details are given under GTSR-1/Table 6A of GSTR-1 and given under shipping bill should be the same.

Refund of 90% amount of IGST paid on exports will be issued within 7 days and the balance amount within 60 days.
The GST Refund always arises in case Export (Goods and services ), without submission of Bond/LUT and payment of IGST on exports.
In the case of Export (Goods and services ) with the submission of Bond/LUT, No IGST is applicable in this cases.
but the refund of accumulated  ITC on expenses related to that export will due.

There are three options to get the refund of taxes paid by an exporter of exported goods:
1. Obtaining non-duty paid inputs and exporting final product without payment of duty.

2. Obtaining duty paid inputs and claiming the refund of the same at the time of export of the finished goods without payment of duty.

3. Obtaining duty paid inputs, availing the input tax credit thereon and exporting finished goods after payment of duty (after utilizing such input tax credit) and thereafter claiming the rebate of the duty paid on exported goods.

How to Claim IGST Refund on Export 

The taxpayer needs to file the online application Form GST RFD 01  within 2 years from the date of export.
After Filling, the application will be sent to the GST officer who will scrutinize and if he found that the application is complete then the taxpayer will get the acknowledgment Form GST RFD 02 at the common portal, containing the date of Claim filling and time limit for the process which starts from Date of Claim.
If the GST Officer found discrepancies in the application Form GST RFD 01, he will send a communication through Form GST RFD 03 via the common portal.

Relevant Dates for filling Form GST RFD 01

• If the Goods are exported through the Sea or By Air, then the relevant date will be the departure from India.
• If the Goods are exported by a Land Vehicle then the relevant date will when that Vehicle crosses the Land frontier of the country.
• If the Goods are exported through Post then the relevant date will be dispatch date of the goods from Post office.
• Deemed Export (SEZ or EOU), return filing date related to such deemed export

Time Limit to Process GST Refund

The GST officer will provisionally allow the 90% Amount of the GST refund Claim, In case of export within 7 days from the date of acknowledgment (Form GST RFD 02). The Provisional refund order   Form GST RFD 04 will be issued within 7 days from the date of the acknowledgment.
The acknowledgment is normally issued within 15 days but in case of refund of integrated tax paid on zero-rated supplies, the acknowledgment would be issued within a period of 3 days.The GST Officer will make a GST Refund payment advice in Form GST RFD 05 and the same shall be electronically credited to any of the bank accounts of the applicant mentioned in his registration particulars and as specified in the application for refund.

If Taxpayer is a person who was prosecuted during any period of previous 5 years preceding the refund period or under any existing law where the amount of tax evaded exceeds Rs. 2.5 Lakhs, the provisional refund would not be granted
6% PA interest will be payable If the refund is not issued within 60 days, Section 56 starts from the 61^st day. The order for refund will be issued in GST RFD 06 and payment advice will be issued in GST RFD 05 mentioning the amount of delayed refund and the period of delay. The interest will be electronically credited to the bank account of the applicant.
if the GST Officer finds that the full or any part of the amount claimed as the refund is not admissible or is not due, he will issue a notice Form GST RFD 08 and the taxpayer will be bound to reply to that notice via Form RFD 09 within a period of 15 days. After the response of the applicant, the GST Officer issue an order in  Form RFD 06 sanctioning the amount of refund in whole or in part, or rejecting the said refund claim. This order would be made available to the applicant electronically. No application for refund shall be rejected without giving the applicant an opportunity of being heard.

Documents to be submitted for GST Refund Claim

Form RFD 01  supported by sufficient documents, as applicable

1. 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 claimed as refund, or
2. A statement containing the number and date of shipping bill or bills of export and the number and the date of relevant export invoices, in a case where the refund is on account of export of goods, or
3. Chartered Accountant 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.
4. A statement containing the number and date of invoices along with the evidence regarding the endorsement in the case of supply of goods made to an SEZ unit or an SEZ developer.
5. a statement containing the number and date of invoices, the evidence regarding the endorsement specified and the details of payment, along with the proofs thereof, in a case where the refund is on account on account of supply of services made to an SEZ unit or an SEZ developer.
6. declaration to the effect that the SEZ unit or the SEZ developer has not availed the input tax credit of the tax paid by the supplier of goods or services or both, in a case where the refund is on account of supply of goods or services made to an SEZ or an SEZ developer.
7. 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 is on account of deemed exports.