GST Refund – The last step of compliance…!!!
- January 5, 2016
- Posted by: Indirect Tax Professionals
- Category: Articles
As per the discussion papers dated August 2015 issued by the Empowered Committee on the last step of Compliance under The Goods And Service Tax Act i.e. Refund under GST, the Committee has stated the steps assessee has to follow at the time of claiming Refund, the documents to be submitted and the process to be followed by the assessee as well as the department while processing the refund.
The steps and processes are as follows:
(1) Any person claiming refund of any tax and interest, if any, paid on such tax may make an application in that regard to the proper officer of IGST/CGST/SGST before the expiry of two years from the relevant date in such form and in such manner as may be prescribed. Provided that the limitation of two years shall not apply where such tax or interest has been paid under protest.
(2) The application shall be accompanied by—
- such documentary evidence as may be prescribed to establish that a refund is due to the applicant, and
- such documentary or other evidence as the applicant may furnish to establish that the amount of tax and interest, if any, paid on such tax in relation to which such refund is claimed was collected from, or paid by, him and the incidence of such tax and interest had not been passed on by him to any other person.
(3) If, on receipt of any such application, the proper officer is satisfied that the whole or part of the amount claimed as refund is refundable, he may make an order accordingly and the amount so determined shall be credited to the Fund.
(4) The proper officer shall issue the order under sub-section (3) within:
- sixty days from the date of receipt of application in case of refund arising from export of goods;
- ninety days from the date of receipt of application in case of refund arising from export of services;
- forty five days from the date of receipt of application in case of refund of unadjusted input tax credit under sub-section (7) of section 18;
- sixty days from the date of receipt of application in case of refund arising on account of a judgement, decree, order or direction of the Appellate Authority or Tribunal or any Court; and
- ninety days from the date of receipt of application for refund in any other case.
(5) Notwithstanding anything contained in sub-section (3), the refundable amount shall, instead of being credited to the Fund, be paid to the applicant, if such amount is relatable to –
- refund of tax on goods and/or services exported out of India or on inputs used in the goods and/or services which are exported out of India;
- refund of unadjusted input tax credit under sub-section (7) of section 18 of the Act;
- the tax and interest, if any, paid by the applicant, if he had not passed on the incidence of such tax and interest to any other person;
- the tax or interest borne by such other class of applicants as the Central or a State Government may, by notification,specify.
(6) Notwithstanding anything to the contrary contained in any judgment, decree, order or direction of the Appellate Tribunal or any Court or in any other provision of this Act or the rules made thereunder or in any other law for the time being in force, no refund shall be made except as provided in sub-section (5).