Required Supporting Documents for GST Refund Applications

When submitting Form GST RFD-01 to claim a refund, specific statements must be attached, varying based on the refund's rationale. Up to seven distinct statements are mandated, along with a certificate requiring authentication by a chartered or cost accountant. These statements are automatically generated on the common portal, where applicants select the relevant invoices for their refund claim.

Recent updates regarding GST refunds include significant changes to application procedures and timelines. As of July 5, 2022, taxpayers are permitted to exclude the COVID-19 pandemic period (March 1, 2020, to February 28, 2022) when calculating the filing deadline for GST refund applications under Sections 54 or 55 of the CGST Act. The February 1, 2022, Budget introduced amendments to Section 54, detailing the prescribed form and method for claiming refunds from the electronic cash ledger. It also extended the refund claim period for UN agencies to two years from the quarter of supply receipt and broadened restrictions on refunding taxpayers with tax defaults to cover various refund types. Furthermore, clarifications were provided for the relevant date for filing refund claims related to SEZ supplies. An earlier update on May 1, 2021, extended the deadline for issuing orders to reject refund claims, either fully or partially, if the original timeline fell between April 15, 2021, and May 30, 2021. The new deadline became the later of 15 days after responding to a notice or May 31, 2021.

Clarification on Statements to be Annexed with Refund Application

Statement 1: Input Tax Rate Higher than Output Tax Rate

Statement 1 is mandatory when a refund is requested because the tax rate on inputs exceeds the tax rate on sales. It requires comprehensive details about the tax paid on both inward and outward supplies, categorised by CGST, SGST, UTGST, and IGST. This includes information on total input tax credit (ITC) available.

Consider Glow Private Limited, an investment consultancy firm, which had a GST liability of Rs 90,000 (18% tax) on a Rs 5 lakh contract. If Glow Private Limited paid 28% tax on inputs, resulting in an ITC of Rs 1,00,000, they could claim a Rs 10,000 refund for the excess input tax. Similarly, Viraj Consultants could seek a refund for overpaid input tax compared to their final output tax liability by submitting Form GST RFD-01, Statement 1, and a certified accountant's certificate.

Statement 2: Tax Paid on Exports

Statement 2 is necessary for refund applications concerning tax paid on export transactions. It mandates details such as port codes, shipping bill dates, export general manifest (EGM) information, and reference numbers and dates from bank reconciliation certificates (BRC) or foreign inward remittance certificates (FIRC).

Statement 3: Exports Without Tax Payment

Statement 3, similar in nature to Statement 2, is required for refund claims where exports were conducted without the prior payment of tax.

Statement 4: Supplies to SEZ Units/Developers

Statement 4 applies to applicants supplying goods or services to Special Economic Zone (SEZ) units or developers. It requires information on the point of supply (if distinct from the recipient's location), applicability of reverse charge, date of supply receipt by the SEZ unit/developer (essential for goods), whether the supply is a deemed export, reference numbers and dates for excise goods removal applications (for goods), payment details for SEZ supplies (for services), and the GSTIN of any e-commerce operator involved.

Statement 5: Export-Oriented Units or Deemed Exports

Statement 5 is relevant when goods are supplied from an export-oriented unit or are categorised as deemed exports. It necessitates providing the supplier's GSTIN, taxable value, HSN/SAC codes, and quantity of goods. Unregistered dealers must specify the “STATE” of supply. Separate details for CGST, SGST, UTGST, IGST, and cess charged are required. For interstate supplies, the point of supply must be indicated. The statement also asks whether the tax charged qualifies for ITC on inputs, capital goods, or input services, along with the ITC amount under various tax heads and net ITC after considering credit/debit notes.

Statement 6: Interstate Supply Reclassified as Intrastate (or Vice Versa)

Statement 6 is submitted for refund claims arising from an interstate supply of goods or services being subsequently reclassified as intrastate, or vice versa. Required details include the GSTIN or name (for consumer supplies), invoice date and taxable value, tax paid under different heads (CGST, SGST, UTGST, IGST, cess) for both the original invoice and any reversals, and the place of supply if it differs from the recipient's location.

Statement 7: Excess Tax Paid in GSTR 3

Statement 7 addresses claims for excess tax paid in the most recently filed GSTR 3 return. It requires specifying the tax period for GSTR 3, its reference number and filing date, and the assessed tax payable under CGST, SGST, UTGST, IGST, and cess.

Statement 8: Unregistered Person Claiming Refund Due to Agreement Cancellation

Statement 8 is for unregistered individuals seeking a GST refund due to excess tax payment resulting from the cancellation or termination of a service supply agreement. The unregistered taxpayer must furnish specific documents, including a statement with invoice details (number, date, value, tax paid), copies of such invoices, proof of payment to the supplier, a copy of the agreement (if applicable), the supplier's cancellation/termination letter, details and proof of payment received from the supplier, and a certificate from the supplier. This certificate must confirm that the supplier paid tax on the invoices for which the refund is claimed, has not adjusted the tax via a credit note, and will not claim a refund for that tax amount.

The precise format for these statements, to be attached to the refund application, is available on the government's official website.