Essential Documents for GST Refund Applications
To successfully process GST refund applications via Form GST RFD-01, taxpayers must append specific statements tailored to their refund claim's rationale. These statements, numbered 1 through 8, address various scenarios such as inverted duty structure, exports, supplies to SEZ units, and refunds for unregistered persons. Additionally, a certificate from a chartered or cost accountant is often required. Recent updates include exclusions for the COVID-19 period and clarifications from Budget 2022 regarding electronic cash ledger refunds and SEZ supplies.
When submitting Form GST RFD-01 for a refund, taxpayers must include specific supporting statements, the type of which depends on the refund's basis. There are several distinct statements corresponding to various refund claims. Additionally, a certificate attested by a chartered accountant or cost accountant is mandatory. These statements are generally auto-populated on the common portal, requiring applicants to select relevant invoices for their claim.
Latest Updates on GST Refund
Taxpayers are permitted to exclude the COVID-19 pandemic period (from March 1, 2020, to February 28, 2022) when calculating the deadline for filing GST refund applications under Sections 54 or 55 of the CGST Act.
Budget 2022 introduced several changes: Firstly, Section 54 was modified to allow refund claims for electronic cash ledger balances through a specific prescribed format. Secondly, UN agencies now have two years, instead of six months, from the end of the quarter of supply receipt to claim refunds. Thirdly, restrictions on refunds for taxpayers with tax defaults, previously limited to unutilized ITC refunds, now apply to other refund categories. Lastly, a new sub-clause (ba) in clause (2) of the explanation clarifies the relevant date for filing refund applications concerning supplies to Special Economic Zones (SEZ).
For refund claims where the deadline for order rejection (in full or part) fell between April 15, 2021, and May 30, 2021, an extension was granted. The revised deadline is the later of either 15 days following the reply to a notice or May 31, 2021.
Overview of Statements Required for GST RefundApplications
Statement 1: Inverted Duty Structure Refunds
Statement 1 is required when seeking a refund because the tax rate on inputs exceeds the tax rate on sales. This statement necessitates detailing tax paid on output under various heads like CGST, SGST, UTGST, and IGST for outward supplies. It includes distinct tables for both inward and outward supplies, showing tax paid on inputs and total available Input Tax Credit (ITC) across these categories. For example, if a service provider like Glow Private Limited has an 18% tax liability on a Rs 5 lakh service, amounting to Rs 90,000, but paid 28% tax on inputs, resulting in Rs 1,00,000 ITC, they can claim a Rs 10,000 refund for the excess input tax. This claim is made via Form GST RFD-01, accompanied by Statement 1 and a certificate from a chartered or cost accountant.
Statement 2: Tax Paid on Exports
Statement 2 is attached to refund applications concerning tax paid on exports. It mandates the inclusion of shipping bill details, such as port code and date, along with Export General Manifest (EGM) specifics. Furthermore, the reference number and date from either a Bank Realisation Certificate (BRC) or a Foreign Inward Remittance Certificate (FIRC) must also be provided.
Statement 3: Exports Without Tax Payment
Similar to Statement 2, Statement 3 is annexed with Form GST RFD-01 for refund applications where exports were executed without prior tax payment, requiring comparable details.
Statement 4: Supplies to SEZ Units/Developers
Applicants must include Statement 4 for supplies of goods or services to a Special Economic Zone (SEZ) unit or developer. This statement requires the following details in a tabular format: the point of supply if distinct from the recipient's location; whether reverse charge mechanism applies; the receipt date of the supply by the SEZ unit/developer (compulsory for goods); whether the supply constitutes a deemed export; the reference number and date of the application for removing excisable goods for export (compulsory for goods); specifics of payments received for services supplied to the SEZ unit/developer (compulsory for services); and the GSTIN of the e-commerce operator, if applicable.
Statement 5: Supplies from EOU or Deemed Exports
Statement 5 is essential for goods originating from an Export-Oriented Unit (EOU) or those classified as deemed exports. It mandates the following information: the supplier's GSTIN; the taxable value, HSN/SAC code, and quantity of goods supplied; the 'STATE' from which goods are supplied, specifically for unregistered dealers; separate disclosure of CGST, SGST, IGST, and cess charged; the point of supply for interstate goods; confirmation of tax eligibility for ITC on inputs, capital goods, or input services; the total ITC amount available under CGST, SGST, UTGST, IGST, and cess; the tax value noted on credit/debit notes; and the net ITC associated with the invoiced goods or services.
Statement 6: Reclassification of Supply (Interstate to Intrastate or Vice Versa)
Statement 6 is submitted for refunds arising from a reclassification of supply—where an interstate supply of goods or services is later deemed intrastate, or vice versa. Required details include: the GSTIN or name (for consumer goods supply); the invoice date and taxable value; tax paid under various heads (CGST, SGST, UTGST, IGST, and cess) as per the invoice, including any reversals; and the place of supply, only if it differs from the recipient's location.
Statement 7: Excess Tax Paid in GSTR 3
Statement 7 is required when an overpayment of tax occurred in the most recently filed GSTR 3. It must specify: the tax period for which GSTR 3 was filed; the reference number and filing date of GSTR 3; and the assessed tax payable amount under CGST, SGST, UTGST, IGST, and cess.
Statement 8: Refunds for Unregistered Persons
Statement 8 is mandatory for unregistered individuals seeking a GST refund due to excess tax payments resulting from a cancelled or terminated service agreement. The unregistered taxpayer must provide: an itemized statement of invoice details (number, date, value, tax paid); copies of these invoices; evidence of payment to the supplier; a copy of the applicable agreement or contract; the supplier's cancellation/termination letter; particulars and proof of payment received from the supplier post-cancellation; and a supplier's certificate confirming they paid tax on relevant invoices, did not adjust tax with a credit note, and will not claim a refund for these amounts.
Detailed formats for these refund application statements are available on the department's official website.