Who can claim GST refund in India?

GST as you know is new Goods and Services Tax that Government of India launched on 1st July 2017. Indian Government also made laws for GST refund process. Thus it will be easy for you to know who can claim refund in GST. In this article you know about process under GST law refund can be for claiming IGST, CGST and SGST.

GST refund rules India

You must follow GST refund rules India. As these rules are about GST refund process. Below you can check refund rules under GST.

GST refund process

  • First you fill application form to claim refund
  • For this you go to GSTN official portal
  • Following link takes you to GSTN network official site http://www.gstn.org/
  • When you fill GST claim refund application form you get acknowledgement number
  • Generally you receive this number through email or SMS
  • After that authorities make adjustment so that return is there
  • Thus it decreases ‘carry forward Input Tax Credit
  • Additionally authorities check documents as well as refund of GST application
  • This takes place in 30 days after you file Goods and Services Tax refund application
  • In case application does not reach refund application then refund goes to Consumer Welfare Fund or CWF
  • On other hand when refund claim is more than predetermined amount of refund then there will be pre audit process
  • It is so because this process allows for refund
  • Finally you get GST refund to your account through NEFT or RTGS or even ECS
  • Government of India along with GST Council allows you to make refund claims at every end of quarter
  • However there will be no refund if amount is less than Rs. 1, 000

Delays in GST refund

According to Subramanian Committee and GST law authorities must process refund application in 90 days. Other wise 6% interest rate will be applicable. In addition Commerce and Industry Minister Nirmala Sitharaman said that refunds under GST will process in 7 days (exporters refund claims). But if time limit is more than 2 weeks then addition of interest rate will be there.

Why is there refund claim of GST?

Situation of refund under GST arises because of below conditions –

  • Extra payment of tax
  • Export of goods and services under rebate claim or refund of Input Credit of Duty or tax on export of Goods and Services
  • Embassies or UN bodies purchases
  • Finalization of the Provisional Assessment
  • International tourists
  • Credit because of output when it is tax exempt or nil
  • Payment of duty or tax in investigation
  • Pre deposit when filing appeal
  • Tax rate differences between Output and Input
  • When supplier gives volume based incentives or year end incentives with credit notes and
  • Refund of CGST and SGST that paid after treating supply as intra State supply

Points to remember

Apart from above things you must remember most important thing. And it is that GST law covers almost all situations under GST claim refund. Moreover according to GST law any person who wishes to get GST claim refund should file claim within 2 years.

Besides these 2 years count from relevant date. Therefore such provisions help people to have refund along with GST refund policy being simple. You can also know more about GST tax returns types and how to file returns.

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