GST Refund Application, Status, Notification and process | Quick Guide

Here is the quick guide on the GST Refund Application Process for Online Application filing.  After reading this you will come to know what are the different types of documents required for a GST refund.  Also, how to get an export refund under GST and how to get a refund of ITC on the export of goods & services without payment of integrated tax.  GSTN has recently issued an advisory for Taxpayers to file a Refund for the Multiple Tax period as below.

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GST Refund Application for multiple Tax period

The Taxpayer can now file the GST Refund application online for multiple tax periods for the below types of transactions.

  • GST on the export of goods and services Without Payment of Tax
  • Refund of IGST paid on export of services With the payment of Tax
  • Outward Supplies made to Special Economic Zone(SEZ Unit/SEZ Developer)-Without payment of Tax
  • Outward Supplies made to SEZ Unit/SEZ Developer- on  payment of Tax
  • Input Tax credit(ITC) accumulated due to the inverted tax structure
  • ITC Claim by recipient /supplier of deemed exports

Multiple Tax period Restrictions

The multiple tax period for GST Refund application has the following restrictions :

  • Multiple tax selection period needs to be within a single financial year.   One cannot select for more than one financial year at a time.
  • The taxpayer needs to file the GST Refund application chronologically for such a tax period.  In case the GST refund application is not to be filed for any tax period, a declaration of  “No Refund Application” is to be provided at the time of filing such an application.

Refund application in Form RFD-01A

The taxpayer can file refund applications in Form GST-RFD-01A and thereafter selecting the tax period range for such a refund.

Uploading of Invoice Details

In order to claim a refund, the taxpayer will have to upload invoice details mandatorily in the statement template available in the refund application itself.

Thereafter, the statement uploaded by taxpayers will be validated by the system from the invoice data provided by the taxpayer at the time of filing return for that period.  At the same time, after completion of this process, the taxpayer will be able to file the refund application.

Single Statement of Invoices

All the details of the invoice are to be provided in a single statement. Also, the taxpayer need not have to upload multiple statements for different periods separately on the portal.

After filing the refund application, the taxpayer will not be able to claim a refund for that invoice again in some other refund application.   Thereafter, the system will lock the invoice for which refund is claimed in one application.   Also, the taxpayer will not be able to amend invoice details once he claims the refund.

Supporting Documents to the application

The Taxpayer can attach other necessary supporting documents if any. (maximum 4 documents in pdf format of size 5MB each)

Review and Approval process

After filing the refund application, it will be available to the jurisdictional tax officer for review and processing of the refund.  He will able to access refund applications in Form GST-RFD-01A along with the statement and documents uploaded by the taxpayer.

Here is the e.g.: Assume that the taxpayer needs to file a GST refund application for period April 2018 to June 2018.  Also, there is no GST refund application filed for the period previous to April 2018.

In this case, first of all, the taxpayer will have to file a No refund application until April 2018.  Thereafter, he needs to file a GST refund application for April 2018 to June 2018.

GST Refund Procedure from Cash Ledger

The cash ledger of GST is used to credit the tax amount mostly while filing the GSTR 3B return. However, many times it is noticed that the taxpayer enters the tax amount under the wrong head while filling the GST challan for payment. For eg. the taxpayer needs to deposit the IGST amount, instead of that, he is entering the amount under the Cess field by an error.

Therefore, since, the taxpayer has credited the amount under the wrong head he can not use to set-off this amount for his tax liabilities. Therefore, here is the simple procedure to be followed for asking a GST refund of such excess or wrongly deposited cash in the ledger.

1. Visit www GST gov in portal for filing the online refund application under the refunds section.

2. Click the Services tab> Refunds > Application for Refund option.

3. Choose the reason for Refund as ‘Refund on account of excess balance in cash ledger’. Click on the create button.

4. The total amount available in Electronic Cash Ledger will be auto-populated in the refund application window.

5. Now mention the amount of GST refund to be claimed in the GST RFD-01 in refund claimed a table.

6. Select your bank account where you want to receive the refund amount.

7. Upload the necessary documents in pdf format

8. Click the Save button to save the GSTR RFD 1 application.

9. Preview the RFD 1 application and proceed to submit.

10. File your Refund application by signing with EVC/DSC option.

Therefore, the above guide is very simple and self-explanatory to claim a refund of excess cash in the ledger.

Top 3 points to consider while applying for GST Refund

The Online processing of GST refund applications and single authorization disbursements has been implemented from 26.09.2019. Thus, the Taxpayers are advised to take note of the following changes:

  • The GST refund application filed by the taxpayers in the RFD-01 form will be processed online by the tax-officer.
  • All communication between the tax authorities and the taxpayers will be done online.
  • The GST refund amount will be disbursed by the recognized bank of the Central Board of Indirect Taxes and Customs (CBIC).
  • This will be done through the Public Financial Management System (PFMS) after verification of the bank account.

Further, the government has made some changes in the existing form to make them compatible for online processing. The form includes GST RFD 1 – 9 and PMT 03. Click here to read the changes.

GST Refund for Exporters Procedure for claiming IGST Paid

06.04.2019: CBEC published a press release on 29th November 2017 with regards to complaints by the exporters for claiming the GST refund of IGST paid on exports and claiming ITC Refund on exports.

It clarifies that the majority of exports made in the month of July 2017 has been accepted for sanctioning the refund, who have filed the returns correctly.

Basic requirements for sanctioning refunds are:

  1. The exporter is required to file GSTR 3B for a particular period.
  2. He is required to fill in details in Table 6A of GSTR 1.
  3. The exporter is also required to file a shipping bill on Customs EDI system.

Exporters should ensure that there are no discrepancies in the information furnished in Table 6A of GSTR 1 and the Shipping Bill.   

The government has observed that certain common errors such as incorrect Shipping Bill number in GSTR1, miss-match of the invoice number and IGST amount paid, wrong bank account, etc. are being committed by exporters while filing these returns.  This has resulted in a delay in grant of refunds, or rejection of the refund application.  

In case of wrong entries made in July, Table 9 of GSTR 1 of August month would allow amendments to GSTR 1 of July 2017.

The above information is readily available to exporters who have already been registered on the Icegatge portal.  Exporters may also contact jurisdictional Customs authorities to check the errors they have committed in the application process.

About Refund of Input Tax Credit:

Refund of any unutilized input tax credit on inputs or input services used in making exports is concerned; exporters shall file an application in FORM GST RFD- 01A on the common portal where the amount claimed as refund shall get debited from the electronic credit ledger of the exporter to the extent of the claim.

Thereafter, a proof of debit (ARN- Acknowledgement Receipt Number) shall be generated on the GSTN portal, which is to be mentioned on the print out of the FORM GST RFD-01A and to be submitted manually to the jurisdictional officer.

Exporters are advised to immediately file:

(a) Table 6A and GSTR 3B, if not already done, for processing of IGST refund

(b) RFD 01A on the GSTN portal for a refund of the unutilized input tax credit on inputs or input services used in making exports.

(c) GSTR 1 for August 2017 for amending details provided in July GSTR1 wherever required. The facility for filing GSTR 1 for August 2017 would be ready by 4th December 2017.

Understanding SB003 and SB005 Error

As per the latest circular from the government, it is understood that major refunds of IGST on export transactions are stuck due to SB003 and SB005 errors.  Let us see what are these errors and how to resolve these errors to get the IGST refund as quickly as possible.

What is SB003 Error?

SB003 Is an error from the custom side and the exporter needs not to have to do anything in this regard.  SB003 error occurs where there is a mismatch between the GSTIN entity mentioned in the shipping bill and that too of GSTR-1 and GSTR-3B returns.

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The government said the board has studied this issue and decided to provide a facility in cases where GSTIN is different but the PAN is the same.   Also, the Board has further said that this is normally happening where the GSTIN entity filing shipping bill is a registered office and the entity who paid the IGST is a manufacturing unit or other types of office.

Therefore those who are claiming IGST refund and who have filed shipping bills have to give an undertaking saying that the entity who has paid the IGST or other offices will not claim the refund or any other type of benefit out of IGST paid. 

The undertaking shall be signed by both entities.  This undertaking has to be submitted directly to the customs officer at the port while exporting the goods.   GST board has further said that they have developed a tool which will automatically clear the claims which were stuck due to error sb003.

What is SB005 Error?

SB005 is a typographical mistake when entering details in GSTR 1 Return.  Many exporters are issuing two types of invoices.  A first tax invoice for GST and another one is the commercial invoice for export purposes. 

If the entered invoice number in GSTR 1 does not match with the invoice number mentioned in the shipping bill then GSTN does not send the data to the custom portal or it is called the mismatch of invoice details in between GSTN system and customs system.  The said error generally called the SB005 error.

What is SB005 Error? picture

How to overcome from SB005 error?

If SB005 error is because of data entry mistake, it can be amended in Form 9 at the GSTN portal.  Also, an alternative mechanism with an officer interface has been provided to resolve the issue.  

Board has further extended the date to provide officer interface for the shipping filed till 30.04.2018.  Secondly, the government has strictly advised exporters to mention the same invoice number as in the GST invoice and shipping bill while filing GST returns in the future.  Above provided facility will be applicable only for the old shipping bills filed.

GST Refund Notification and Circulars

  • CBIC issued a Circular No. 94/13/2019-GST dt. 28th march 2019 to clarify certain issues on GST Refund. 
  • CBIC issues a circular No. 125/44/2019-GST DT.18.11.2019 to clarify THE fully electronic refund process through RFD 01 online

Latest Updates on GST Refund process

New Functionalities as on 30.01.2020

  • The taxpayers will now get an alert while filing the GST refund application.  Thus, this alert will enable them not to file NIL GST refund application.  However, the taxpayer shall note that they cannot change the particulars of the GST refund application after its filing.  Similarly, this is applicable even if they have a little amount to claim for the same month and for the same refund category.   Thus, this initiative will ensure that the taxpayer does not file the NIL GST refund.
  • The correct form number will be shown to the UIN and Embassy taxpayers in draft mode.  Also, they will able to see the form GST RFD – 10. 
  • When the deficiency memo is issued for the second time by the tax officer, the debited amount will be credited back to the taxpayer’s ITC ledger. 

General Questions on GST Refund

What is GST Refund?

The GST refund is an amount refunded by the government to the taxpayer if he makes excess payment by an error or with the purpose as per the rules.

Who can Claim GST Refund?

The following type of taxpayers can claim GST Refund:
1. Excess Balance in Electronic Cash Ledger
2. ITC on account of exports of goods/services without payment of tax (accumulated ITC)
3. Supplies made to SEZ Unit/ SEZ Developer (with/Without Payment of Tax)
4. ITC Accumulated Due to Inverted Tax Structure
5. Supplies made to SEZ Unit/ SEZ Developer (With Payment of Tax)
6. Export of Services (With Payment of Tax)
7. On account of Excess Payment of Tax
8. Other reasons.

How to apply for GST Refund?

1. Go to the GST portal
2. Select the Services tab > Refunds > Application for Refund
3. Fill the details and file the application

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