How to claim refund of ITC & tax paid on exports of goods or services

How to claim refund of Input Tax Credit and tax paid on exports of goods or services

There are 2 modes under which one can carry on export in India as far as GST is concerned

Mode 1: Export of goods on the payment of Integrated tax & then exporter can claim the refund of GST paid on such goods exported.

Mode 2: Export of goods or/and services under bond or Letter of Undertaking (LUT) without paying any Integrated tax & claiming the refund of unutilized input credit.

The process to apply for GST refund

Step 1: Filling Form GST RFD-01/1A:

First step for refund is to file refund application in GST FORM – 01 or GST FORM – 1A on common portal.

Step 2: Submission of application & other required documents to the Jurisdictional officer:

The common portal shall generate Acknowledgement receipt number which would be submitted to jurisdictional proper officer along with GST RFD FORM – 01/1A along with supporting documents.

Step 3: Initial scrutiny of the documents by the proper officer:

After scrutiny of application, Deficiency Memo in GST RFD-03 or Acknowledgement in GST RFD-02 will be issued within 15 days from the date of application submitted under Step – 2.

Step 4: Grant of Provisional Refund:

Provisional refund shall be granted within 7 days of acknowledgement and shall be credited directly to the bank account of applicant of acknowledgement in GST RFD-04. Payment advice shall be issued in FORM GST RFD – 05.

Step 5: Detailed scrutiny of refund application:

Following will be scrutinized in detail by officer:

Refund statement detail with GSTR-1 and GSTR-6A.
Shipping bill details shall be checked.
Detail of IGST paid on Inputs with GSTR-3 and GSTR-3B.
Refund applied should be less than IGST paid on Inputs.
Any adjustment in refund amount shall be made via GST RFD-07.
 

Step 6: Final order of refund:

Final order is to be made in form GST RFD-06.

Provisional GST Refund
The proper officer shall refund ninety percent of the refundable amount of claim on a provisional basis.

Disbursal of GST refund
While filing the refund application, the applicant can select a bank account as given at the time of registration in Form GST REG 01.

If the applicant is not provided with the refund within 60 days of submission of application, then interest at the rate 6 percent from the date of export if 60 days is to be given to the applicant.

Drafted by:
CS.A.Maniraj.,B.Com.,ACS.,CA(Fin), Independent Director 
Certified CSR Professional., Certified GST Professional.