Refund

There are various rules and regulations which have emerged in the GST refund process. The GST refund will be needed to maintain under the GST as even a slight delay in the refund process will impact the working capital and cash flow of the manufacturers and exporters. In the current scenario, there is a delay in refunds extending for months by making refunds available to the concerned manufacturers and exporters, and to get the refunds, it is a challenge as there are strict rules and regulations for the processing of refunds.

PROCEDURE OF FILING GST REFUND APPLICATION

a) Online Application Form GST RFD-01

The application for refund shall be supported by various documents depending upon the category of refund. The online portal provides facility to upload 10 files of 5MB each. The application is transferred to the jurisdiction officer for the purpose of further processing

b) Deficiency Memo Form GST RFD-03

if any deficiency is noticed in the application submitted by the taxpayer, the jurisdictional officer shall issue deficiency memo in Form RFD-03 within 15 days of submission of application, requiring the taxpayer to file fresh refund application after rectification of deficiencies. Any amount of Input Tax Credit / Cash debited from Ledgers shall be re-credited automatically in the ledgers of the taxpayer. Important point to be noted is that the application filed after Deficiency memo is treated as a fresh application and the limitation period of 2 years shall also apply to the new application

c) Acknowledgement Form GST RFD-02

If the refund application is complete in all aspects, acknowledgement in Form RFD-02 shall be issued within 15 days of submission of application. Once an acknowledgement has been issued no deficiency memo on whatsoever grounds can be issued by the officer.

d) Provisional Order (RFD-04) / Payment Order (RFD-05) / Refund Order (RFD-06)

    • The officer upon being satisfied that prima facie the refund is due towards the applicant may sanction 90% of the refund amount on a provisional basis within seven days of the refund application in Form RFD-04 in the case of any claim for refund on account of zero-rated supplies

    • However, the officer may upon being fully satisfied about the eligibility of the refund and is of opinion that no further scrutiny is required, directly issue refund order Form RFD-06, which is practically happening in mostly all the cases

    • Along with issue of the above forms, payment order Form RFD-05 shall be issued for the amount sanctioned and the same shall be electronically credited to the applicants bank account.

e) Other Forms (RFD-07 / RFD-08 / RFD-09)

    • Form RFD-07 is prescribed in Rules for adjustment of refund with any outstanding demand from the applicant, but this is also now incorporated in Form RFD-06

    • If officer is of the view that certain refund amount is non-admissible, then notice is Form RFD-08 shall be issued asking reasons why the refund should not be rejected, against which the applicant shall submit reply in Form RFD-09

 

What are the types of GST refund forms?

There is a list available for different types of GST refund forms one by one-

FORM GST RFD-01

  • This is the form available for the taxpayer.

  • This is an application for a refund by the online process.

  • For applying for a refund just log in your GST portal online.

  • Then go to Services>Refund>Application for refund>select the refund type>Select Account detail>Upload supporting document and finally submit to proceed for refund.

FORM GST RFD-01 A

  • This is the form available for the taxpayer for the application of a refund manually.

  • And further RFD-01A is a replica of RFD-01 introduced as a temporary solution till such time the online facility is enabled for claims of refund.

FORM GST RFD-01 B

  • This is the form for the GST refund tax officials.

  • This is an order in which refund order detail is provided.

FORM GST RFD-02

  • This is available for the tax officials

  • This is an acknowledgment of the application for a refund.

FORM GST RFD-03

  • This is the form available for the tax officials

  • And this is a notice of deficiency in the application of refunds for the taxpayer by the tax officials.

FORM GST RFD-04

  • This form is available for the tax officials and a provisional refund order in reference to the application of a refund.

  • The provisional refund shall be granted by the issue of Form GST RFD-04 within seven days of giving the acknowledgment in RFD-02

FORM GST RFD-05

  • This form is a format of the payment order that has to issue by the tax officials on approval of the application for refund.

FORM GST RFD-06

  • The tax officials have to process the refund application within 60 days from the date of submission of the application of refund

  • And if the amount of refund is acceptable then the refund sanction/ rejection order will be issued by the tax officials in FORM GST RED-06

FORM GST RFD-07b

  • This form is the order for withholding the refund available for the tax officials for the issue.

FORM GST RFD-08

  • This is the form for the tax officials to intimate the taxpayer as notice for rejection of the application for refund

FORM GST RFD-09

  • In this form, the taxpayer will have to reply in reference to the show-cause notice.

  • Further, the taxpayer can show the evidence as proof to prove the refund.

FORM GST RFD-10

  • This form is available for the taxpayer.

  • This is an application for refund by any specialized agency of UN or any multilateral financial institution and organization, consulate or embassy of foreign countries, etc.

FORM GST RFD-11

  • This is available for the taxpayer who exports the goods and services

  • In order to make exports without payment of IGST, the taxpayer will have to furnish a bond or letter of undertaking for the export of goods and services.

  • The letter of the undertaking has to file before exporting the goods and services.