Refund of GST on Exports/Deemed exports

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Meaning of refund under GST

“refund” includes refund of

(i) Tax paid on zero-rated supplies of goods or services or both or

(ii) Tax paid on inputs or input services used in making zero-rated supplies

(iii) Tax paid on supply of goods regarded as deemed exports.

(iv) unutilized input tax credit due to inadverted duty structure(Rate on Input > Rate on output).

(v) Unutilized balance in electronic credit ledger.

(vi) Any other amount and fee (CGST paid instead of IGST etc.)

Statutory Provisions Relating to Imports/ Exports under GST

SectionSubject
Section 2(5) of IGST Act, 2017Definition of export of goods.
Section 2(6) of IGST Act, 2017Definition of export of services.
Section 2(10) of IGST Act, 2017Definition of import of goods.
Section 2(11) of IGST Act, 2017Definition of import of services.
Section 54 of CGST Act, 2017Refund of tax.
Section 55 of CGST Act, 2017Refund of tax paid on supply to specialized agency of UNO
Section 55 of CGST Act, 2017Interest on delayed refunds (`Delay > 60ays) @6%( in normal case) in case of appeal if not refunded within 60 days @ 9%

 

Meaning of Zero Rated Supply under GST

  • “Zero rated supply” means

(a) export of goods or services or both.

(b) supply of goods or services or both to SEZ developer/unit.

Meaning of Deemed Export under GST –

 (Notification No. 48/2017-Central Tax DATED 18th October, 2017)

Sr no.Description
1Supply of goods against Advance Authorization
2Supply of capital goods against EPCG Authorization
3Supply of goods to EOU Unit
4Supply of gold by a Bank or PSU against Advance Authorization.

 

Meaning of Export under GST

“Export of goods” (Section 2(5) of IGST Act, 2017)

Means taking goods out of India to a place outside India;

“Export of services” means the supply of any service when,––(Section 2(6) of IGST Act, 2017)

(i) the supplier of service is located in India;

(ii) the recipient of service is located outside India;

(iii) the place of supply of service is outside India;

(iv) the payment for such service has been received by the supplier of service in convertible foreign exchange; and

(v) the supplier of service and the recipient of service are not merely establishments of a distinct person

Section 54 : Refund of Tax

(1) Any person claiming refund of any tax and interest, if any, paid on such tax or any other amount paid by him, may make an application before the expiry of two years from the relevant date in such form and manner as may be prescribed:

  • Refund is available to any person who has paid the Tax or Interest whether he is registered or Not.
  • Time Limit for application : Before the expiry of two years from the relevant date.
  • Provided that a registered person, claiming refund of any balance in the electronic cash ledger in accordance with the provisions of sub-section (6) of section 49, may claim such refund in the return furnished under section 39 in such manner as may be prescribed.
  • Refund of any balance in the electronic cash ledger may be claimed in return itself

Refund of IGST paid on goods,  exported out of India

Shipping bill filed shall be deemed to be  an application of refund

  • Conditions:

Export manifest or export report is filed

Valid return in  FORM-3 or 3B has been filed

GSTR -1 for the month has been filed

  • Customs system to automatically process refund and credit IGST paid electronically to bank account of applicant exporter
  • Order regarding withholding of refund/further sanction-to be done manually through FORM GST RFD-07/FORM GST RFD -06

Points to be NOTED

  • Correct shipping bill number must be given in table 6A of GSTR1
  • Invoice numbers for GST (given in GSTR 1) and Customs (as mentioned in shipping bill) should match
  • IGST paid amount given in GSTR1 to tally with IGST amount in shipping bill
  • EGM should be filed online and information furnished in EGM and shipping bill should match
  • Correct bank account should be available with bank Customs
  • Shipping bill are available for viewing online on ICEGATE website

Export of services with payment of IGST or Supply of goods or services with payment of IGST to a SEZ

Application FORM:GST RFD-01A (to be filled manually) and to be submitted with jurisdictional GST officer either at center or state

  • Conditions:-
  • Form has to be submitted with only one officer- either Center or State
  • Form should accompanied by statement .
  • Undertaking required to be submitted that claim has been made to only one authority.
  • Once application is received, entry has to be made in refund Register
  • Acknowledgement in GST RFD-02 to be issued within 15 days from the date of filling of application/resubmission of application.
  • Declaration to be submitted by claimant that no refund has been Claimed against the relevant invoices
  • Officer to check whether GSTR 3/3B has been filed
  • Deficiencies in documents to be communicated
  • application to be resubmitted after rectifying deficiencies
  • Declaration to be filed by applicant stating that it has not contravened rule 91 (1) of CGST Rules
  • Processing of grant o provisional refund to be completed within 07 days
  • Payment advise form RFD-05
  • Final order to grant refund to be issued within 60 days from date of GST RFD-02.

Export of goods or services without payment of IGST Or Supply of goods or services to SEZ without payment of IGST

  • Application FORM:GST RFD-01A (to be filled online)
  • Unutilized input tax credit will be claimed as refund
  • Amount claimed as refund will be debited in electronic credit ledger and ARN reflecting proof  of debit shall be generated
  • Print out of the form has be submitted manually with jurisdiction GST officer –either center  or state

Conditions:-

The form has to be submitted with only one officer either state or center

The form has to be accompanied by statement

The ARN will be mentioned on the Form GST RFD-01A submitted manually

Undertaking is required to be submitted that the claim for sanction of refund has been made to only one authority

  • Declaration to be submitted by claimant that no refund has been Claimed against the relevant invoices
  • Officer to check whether GSTR 3/3B has been filed
  • Deficiencies in documents to be communicated
  • Application to be resubmitted after rectifying deficiencies
  • Declaration to be filed by applicant stating that it has not contravened rule 91 (1) of CGST Rules
  • Processing of grant o provisional refund to be completed within 07 days
  • Payment Advice FORM GST RFD-05
  • Refund to be made directly to bank account mentioned in registration
  • Final order to grant refund to be issued within 60 days from date of GST RFD-02.

Refund in case of  Deemed Exports

  • Application FORM:GST RFD-01A (to be filled online)
  • Unutilized input tax credit will be claimed as refund
  • Amount claimed as refund will be debited in electronic credit ledger and ARN reflecting proof of debit shall be generated
  • Print out of the form has to be submitted manually with jurisdiction GST officer –either Center or State

Conditions:-

The form has to be submitted with only one officer ,either State or Center

The form has to be accompanied by statement.

The ARN will be mentioned on the Form GST RFD-01A submitted manually

Undertaking is required to be submitted that the claim for sanction of refund has been made to only one Authority

  • Conditions:-
  • Acknowledgment by the jurisdictional tax officer of the Advance Authorization holder or EPCG holder as the case may be ,that the said deemed export supplies have been received by the said Advance authorization or EPCG holder, or a copy of the tax invoice under which such supplies have been made by the supplier, duly signed by the recipient EOU unit that said deemed export supplies have been received by it

Under taking by the recipient of deemed export supplies that he shall not claim the refund in respect of such supplies and that no input tax credit on such supplies has been availed of by him.

  • Once application is received, entry has to be made in the refund register maintained by the office of the jurisdictional officer
  • Declaration to be submitted by claimant that no refund has been Claimed against the    relevant invoices
  • Officer to check whether GSTR 3/3B has been filed
  • Deficiencies in documents to be communicated
  • application to be resubmitted after rectifying deficiencies.
  • Declaration to be filed by applicant stating that it has not contravened rule 91 (1) of CGST Rules
  • Processing of grant o provisional refund to be completed within 07 days
  • Final order to grant refund to be issued within 60 days from date of GST RFD-02.-after due verification of documentary evidence and detailed scrutiny

 

 

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