How to Apply for GST Refund: A Comprehensive Guide for Businesses

Applying for a GST refund can be a complex process, but understanding the steps and requirements can make it more manageable. This guide provides detailed instructions for businesses on how to apply for a GST refund, including the necessary forms, documentation, and conditions.

Understanding GST Refunds

Businesses can claim refunds for tax, interest, penalty, fees, or any other amount paid under GST. The refund process ensures that businesses are not unduly burdened by tax payments, especially in cases of excess payments or exports.

Steps to Apply for a GST Refund

1. Application for Refund

• Eligibility: Any person, except those covered by specific notifications under section 55, can apply for a refund.
• Form: File the application electronically in FORM GST RFD-01 through the Common Portal, either directly or via a Facilitation Centre notified by the Commissioner.
• Specific Cases:
  • Balance in Electronic Cash Ledger: Claims can also be made through FORM GSTR-3, FORM GSTR-4, or FORM GSTR-7.
  • Export of Goods: Application for refund can be filed only after the export manifest or export report is delivered under section 41 of the Customs Act, 1962.
  • Supplies to SEZ: Application for refund by the supplier of goods or services must include evidence of receipt of goods or services by the SEZ unit or developer.

2. Required Documentation

The application must be accompanied by the following documents, as applicable:

• Order Reference: Reference number and a copy of the order from the proper officer, appellate authority, or court.
• Export Details: Statement with the number and date of shipping bills, export invoices, and relevant Bank Realization Certificates or Foreign Inward Remittance Certificates.
• SEZ Supplies: Statement with invoice details and endorsement from the specified officer of the SEZ.
• Deemed Exports: Statement with invoice details and other notified evidence.
• Input Tax Credit: Statement in Annex 1 of FORM GST RFD-01 with invoice details received and issued during the tax period.
• Final Assessment Orders: Reference number and copy of the final assessment order.
• Intra-State to Inter-State Supply: Statement showing details of transactions considered as intra-State but held to be inter-State.
• Excess Payment of Tax: Statement showing details of the claim.
• Declaration of Non-Passing of Tax Incidence: Required if the refund amount does not exceed ₹2 lakh.
• CA Certificate: Certificate from a chartered accountant or cost accountant for claims exceeding ₹2 lakh.

3. Debiting Electronic Credit Ledger

For refunds related to input tax credit, the electronic credit ledger must be debited by the applicant in an amount equal to the refund claimed.