GST Refund


GST is a destination based consumption tax where in the levy of tax moves along with goods and /or services. “Refund Process Under GST” is defined under Model GST Law as refund of tax on goods / services exported out of India or on inputs or input services used in the goods / or services which are exported out of India, or refund of tax on supply of goods regarded as “deemed Exports’ or refund of unutilized input tax credit. In simple terms where a goods exporter is not in position to utilize the GST paid in inputs such as raw material , inputs  etc. which are used for export of goods then he is eligible to take refund of GST.

Types of Exports

1.Direct Export :-   Direct Export Is Exports Where The Goods Supplied Are Exported To Any Country Outside India And The Payment Is Received Either In Free Foreign Exchange

2.Deemed Export : –  Those Transactions In Which Goods Supplied Do Not Leave Country, And Payment For Such Supplies Is Received Either In Indian Rupees Or In Free Foreign Exchange.

3.Third Party Export : – Third Party Exports Are Exports Made By Exporter On Behalf Of Another Exporter Or Manufacturer.

Highlights of GST Refund Process

Refund of GST : –  When Goods exporter is not in a positions to utilize the input GST credit due to export of gods in that case person can apply for refund of GST to government department.

Period of Application : –  Under the provisions of GST refund  need to be make to proper officer with the relevant date as specified. Beyond relevant period GST refund applicable become time  bard.      

Documents Required for GST Refund : –   For making GST refund claim application various documents required such as electronic credit register, export invoices, Shipping Bill, Annexure 2 certified by CA , other supporting.

Key Points in GSR Refund Process

  1. GST Compliance Rating Of The Applicant Is Not Less Than 5 On A Scale Of 10.
  2. No Proceeding For Any Appeal, Review Or Revision Is Pending On Issues Which Form The Basis Of The Refund  Pending, The Same Has Not Been Stayed By The Appropriate Authority Or Court.
  3. Refund Shall Be Granted After Adjusting Any Outstanding Demand Payable By The Applicant.
  4. Person Claiming Refund Of Tax Paid On Inward Supplies Shall Apply For Refund In Form GST RD-10 Once In Every Quarter 
  5. The Refund Claimed In Part B Of GSTR-3 Shall Be Deemed To Be An Application Filed For Refund.

Apply GST Refund