5 Steps for private limited company registration

APPLICATION FOR REFUND OF UNUTILISED INPUT TAX CREDIT

Accumulation of Input Tax Credit happens when the tax paid on inputs is more than the output tax liability. Such accumulation will have to be carried over to the next financial year till such time as it can be utilised by the registered person for payment of output tax liability.

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.

SITUATIONS LEADING TO REFUND CLAIMS:

1. Export of goods or services.
2. Supplies to SEZs units and developers.
3. Deemed exports.
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 other than Nil rated or fully exempt supplies (Inverted Duty Structure-Where rate of output tax payable is less than rate of tax on inputs.)
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 supply as intra-State supply which is subsequently held as inter-State supply and vice versa.

TIME LIMIT WITHIN WHICH REFUND CLAIM CAN BE FILED:

1. The GST law requires that every claim for refund is to be filed within 2 years from the relevant date in such form and such manner as may be prescribed.
2. The GST law requires that every claim for refund is to be filed within 2 years from the relevant date in such form and such manner as may be prescribed.

DOCUMENTS REQUIRED FOR FILING REFUND CLAIM

1. Such documentary evidence as may be prescribed to establish that a refund is due to the applicant.
2. Such documentary or other evidence as the applicant may furnish to establish that there is no unjust enrichment i.e incidence of tax was not passed to any other person.
3. However, where amount claimed as refund is less than Rs.2 lakh, it shall not be necessary for the applicant to furnish any documentary and other evidences but he may file a declaration certifying that there is no unjust enrichment.
4. However, where the amount of refund claimed exceeds Rs.2 lakh, a Certificate in Annexure 2 of FORM GST RFD-01 by a Chartered Accountant or Cost Accountant to the effect that there is no unjust enrichment in the case of the applicant has to be furnished.