GST Refund Introduction What is GST Refund Situation leading to GST GST council Refund Claims Calculation of GST refund Time limit to claim refund

1. GST Refund

2. Introduction
Timely refund mechanism is essential in tax administration, as it facilitates trade
through release of blocked funds for working capital, expansion and modernization of
existing business.
The provisions pertaining to refund contained in the GST law aim to streamline and
standardise the refund procedures under GST regime.
Thus, under the GST regime there will be a standardised form for making any claim for
refunds. The claim and sanctioning procedure will be completely online and time
bound which is a marked departure from the existing time consuming and
cumbersome procedure.
It has been decided, however, that since the online refund module is not available
immediately, the refund process would be handled manually and Circular No.
17/17/2017- GST dated 15.11.2017 and Circular no. 24/24/2017-GST dated
21.12.2017 prescribing the detailed procedure have been issued.

3. What is GST refund?
Usually when the GST paid is more than the GST
liability a situation of claiming GST refund arises.
Under GST the process of claiming a refund is
standardized to avoid confusion. The process is
online and time limits have also been set for the
same.

4. SITUATIONS LEADING TO REFUND CLAIMS
A claim for refund may arise on account of
1. Export of Goods or services
2. Supplies to SEZs units and developers
3. Deemed Export supplies
4. Refund of taxes on purchase made by UN or embassies etc
5. Refund arising on account of judgment, decree, order or
direction of the Appellate Authority, Appellate Tribunal or
any court 6. Refund of accumulated Input Tax Credit on
account of inverted duty structure

5. SITUATIONS LEADING TO REFUND CLAIMS
6. Refund of accumulated Input Tax Credit on account of inverted duty
structure
7. Finalisation of provisional assessment
8. Refund of pre-deposit
9. Excess payment due to mistake
10. Refunds to International tourists of GST paid on goods in India and
carried abroad at the time of their departure from India
11. Refund on account of issuance of refund vouchers for taxes paid on
advances against which goods or services have not been supplied
12. Refund of CGST & SGST paid by treating the 283 supply as intra-State
supply which is subsequently held as inter-State supply and vice versa.

6. How to calculate GST refund?
Let’s take a simple case of excess tax payment
made. Mr. B’s GST liability for the month of
September is Rs 50000. But due to mistake, Mr. B
made a GST payment of Rs 5 lakh.
Now Mr. B has made an excess GST payment of Rs
4.5 lakh which can be claimed as a refund by
him. The time limit for claiming the refund is 2
years from the date of payment.

7. What is the time limit for claiming the refund?
The time limit for claiming a refund is 2 years from relevant
date. The relevant date is different in every case. Here are the
relevant dates for some cases