GST Refund Services in Delhi

Types of GST Refund

There are several types of GST refunds available under the Goods and Services Tax regime in India. These include:

Export of Goods and Services: Refund of GST paid on goods exported out of India or services provided to clients located outside India.

Supplies to SEZ Units or Developers: Refund of GST paid on supplies made to Special Economic Zones (SEZ) units or developers.

Inverted Duty Structure: Refund of GST paid on inputs where the tax rate on inputs is higher than the tax rate on outward supplies (finished goods/services).

Accumulation of Input Tax Credit (ITC): Refund of unutilized ITC due to zero-rated supplies (like exports) or inverted duty structure.

Refund on Taxes Paid by Embassies and UN Bodies: Refund of GST paid on goods and services supplied to embassies, consulates, or United Nations bodies.

Refund on Pre-Deposit: Refund of GST paid on pre-deposits made for filing appeals, etc., if the appeal is decided in favor of the taxpayer.

Points to be Considered when Filing GST Refund

Eligibility Criteria: Ensure that your claim meets the eligibility criteria for the specific type of GST refund you are filing, such as export of goods/services, supplies to SEZs, inverted duty structure, etc.

• Documentation: Gather all necessary documents including invoices, shipping bills, proof of payment of GST, and other supporting documents required to substantiate your refund claim.
• Accuracy and Completeness: Ensure that the refund application is filled out accurately and completely, with no errors in calculations or information provided.
• Timely Filing: File the refund application within the stipulated time frame prescribed under GST laws to avoid any delays or penalties.
• Compliance with GST Regulations: Ensure compliance with all GST regulations and procedural requirements for filing refund claims, including any specific formats or forms required by the GST authorities.
• Verification of Details: Double-check all details entered in the refund application to match with the supporting documents and ensure consistency.
• Track Application Status: Monitor the status of your refund application regularly through the GST portal and respond promptly to any queries or requests for additional information from the tax authorities.
• Consultation with Experts: Consider seeking assistance from GST consultants or experts to navigate complex refund processes, especially for businesses with multiple transactions or unique circumstances.
• Review and Reconciliation: Conduct a thorough review and reconciliation of input tax credits (ITC) and tax liabilities to ensure accurate calculation of the refund amount claimed.
• Maintain Records: Maintain proper records of all transactions, refund applications, and correspondence with tax authorities for future reference and audits.

Eligibility for GST Refund Claim

Each type of GST refund has specific conditions and documentary requirements that businesses must fulfill to be eligible for claiming refunds under the GST regime in India. It’s essential to adhere to these criteria and maintain accurate records to facilitate a smooth refund process.

Eligibility criteria for GST refund claims in India vary depending on the type of refund being sought. Here are the common eligibility points for different types of GST refunds:

Export of Goods or Services:

Goods or services must have been exported out of India.

GST must have been paid on inputs or input services used to manufacture or supply exported goods or services.

Refund claim must be filed within prescribed time limits and accompanied by supporting documents like shipping bills, export invoices, and relevant bank statements.

Supplies to SEZ Units or Developers:

Goods or services must have been supplied to a Special Economic Zone (SEZ) unit or developer.

GST must have been paid on inputs or input services used in supplying goods or services to SEZs.

Refund application should be supported by documents such as invoices, proof of payment, and SEZ documentation.

Inverted Duty Structure:

Refund is applicable where GST paid on inputs is higher than the GST on outward supplies (finished goods or services).

Application should include details of inward supplies, rate of GST paid, and proof of payment.

Claim must be filed within the stipulated time period with supporting documentation.

Accumulation of Input Tax Credit (ITC):

Refund of unutilized ITC accumulated due to zero-rated supplies (exports), inverted duty structure, or any other reason as specified.

Application must be filed within the prescribed time limit with relevant documents supporting the claim.

Refund on Taxes Paid by Embassies and UN Bodies:

Refund of GST paid on goods and services supplied to embassies, consulates, or United Nations bodies.

Proper documentation such as invoices, proof of supply, and diplomatic status verification should accompany the refund application.

Refund on Pre-Deposit:

Refund of GST paid on pre-deposits made for filing appeals or other statutory requirements, if the appeal is decided in favor of the taxpayer.

Application should include proof of pre-deposit and order/result of the appeal.

Documents Required for GST Refund

Documents required for GST refund claims vary depending on the type of refund being claimed. Here are the common documents needed for different types of GST refunds in India:

Export of Goods or Services:

Copy of export invoice containing GSTIN, shipping bill or bill of export, and customs acknowledgment of export.

Bank realization certificate or Foreign Inward Remittance Certificate (FIRC) for proving receipt of foreign exchange.

Supplies to SEZ Units or Developers:

Tax invoice issued for supplies made to SEZ unit or developer containing GSTIN.

Proof of payment such as bank statement or receipt voucher evidencing payment received in case of export of services.

Inverted Duty Structure:

Invoices for inward supplies showing payment of GST.

Details of outward supplies along with the rate and amount of GST charged on such supplies.

Accumulation of Input Tax Credit (ITC):

Copies of invoices or documents supporting the claim of input tax credit (ITC) accumulation.

GSTR-2A (auto-drafted ITC statement) for reconciliation of ITC claimed.

Refund on Taxes Paid by Embassies and UN Bodies:

Tax invoices issued to embassies, consulates, or United Nations bodies containing GSTIN.

Documents evidencing the supply of goods or services to such entities, including diplomatic status verification.

Refund on Pre-Deposit:

Copy of the appeal order/result in favor of the taxpayer.

Proof of pre-deposit made for filing the appeal, along with details of the amount deposited.

General Documents:

GST registration certificate of the taxpayer.

Copies of bank account statements.

Any other documents specified under GST law or requested by GST authorities.

GST Refund Process

It’s essential for taxpayers to maintain accurate records, including invoices, payment receipts, and other relevant documents, to support their refund claims. Timely and correct filing of refund applications helps ensure smooth processing and receipt of refunds under the GST regime. The GST refund process in India involves several steps to ensure proper verification and disbursement of refunds to eligible taxpayers. Here’s an overview of the GST refund process:

Preparation and Submission of Refund Application:

Taxpayers must first prepare and submit a refund application online through the GST portal (www.gst.gov.in).

The application must be filled out accurately and completely, specifying the type of refund being claimed (export, SEZ supplies, inverted duty structure, etc.).

Verification and Scrutiny by GST Authorities:

Upon submission, the GST authorities review the refund application and accompanying documents.

They may seek clarification or additional information if necessary, which must be promptly provided by the taxpayer.

Processing and Sanctioning of Refund:

If the refund application is found to be complete and in order, the GST authorities process the refund.

Refunds are sanctioned electronically and transferred directly to the taxpayer’s registered bank account through the ECS (Electronic Clearing Service) or NEFT (National Electronic Funds Transfer) system.

Communication of Refund Status:

Taxpayers can track the status of their refund application on the GST portal using their ARN (Application Reference Number).

Any communication or further action required from the taxpayer will be notified through the GST portal.

Rejection or Deficiency Notice:

If the refund application is found deficient or ineligible, the GST authorities may issue a deficiency notice specifying the reasons for rejection.

Taxpayers have an opportunity to rectify the deficiencies or provide additional information within the specified timeframe.

Appeal Mechanism:

In case of disagreement with the refund decision, taxpayers have the right to appeal to the appropriate appellate authority within the GST framework.

Timely Disbursement:

GST law mandates timely disbursement of refunds, generally within 60 days from the date of filing the refund application (subject to verification and compliance).

GST Registration

GST registration is essential for businesses to legally collect and remit GST to the government. It also allows for claiming input tax credits on purchases, thereby reducing the overall tax burden on goods and services supplied. GST (Goods and Services Tax) registration is mandatory for businesses and individuals engaged in the supply of goods or services in India, exceeding specified turnover thresholds. Here’s an overview of the GST registration process:

Threshold Limits:

Businesses with an aggregate turnover exceeding ₹40 lakhs (₹20 lakhs for special category states) in a financial year must register for GST.

Certain categories of businesses, such as those involved in interstate supply of goods or services, are required to register irrespective of turnover.

Types of GST Registration:

Regular GST Registration (Normal Taxpayer)

Composition Scheme Registration (for small taxpayers opting for a lower tax rate with limited compliance requirements)

Non-Resident Taxable Person Registration (for non-residents supplying goods or services in India)

Casual Taxable Person Registration (for occasional supply of goods or services in India)

Documents Required for GST Registration:

PAN card of the business or individual

Aadhaar card (for identity verification)

Proof of business registration or incorporation certificate

Address proof of the business premises (rent agreement, electricity bill, etc.)

Bank account statement or cancelled cheque

GST Registration Process:

Application for GST registration is filed online through the GST portal (www.gst.gov.in).

Form GST REG-01 is filled out with the required details and documents uploaded electronically.

Upon submission, a unique Application Reference Number (ARN) is generated for tracking the status of the application.

Verification and Approval:

The GST authorities verify the application and documents submitted.

If everything is in order, GST registration is approved, and a GSTIN (GST Identification Number) is issued to the taxpayer.

Issuance of GSTIN:

GSTIN is a 15-digit alphanumeric unique identification number assigned to each registered taxpayer under GST.

It is used for filing GST returns, issuing invoices, and conducting compliance activities under GST.

Compliance Requirements:

Once registered, taxpayers must comply with GST regulations, including filing periodic GST returns (GSTR-1, GSTR-3B, etc.) and maintaining proper records of invoices and transactions.

GST Cancellation

GST cancellation refers to the process by which a registered taxpayer voluntarily terminates their GST registration. This can occur due to various reasons such as cessation of business operations, transfer or merger of business entities, or a change in business structure that no longer requires GST registration. The cancellation process is initiated by filing an application in Form GST REG-16 on the GST portal, accompanied by relevant supporting documents depending on the reason for cancellation. Once the application is submitted, GST authorities verify the details provided and may request additional information if necessary. Upon approval, a cancellation order is issued, specifying the effective date from which the registration stands canceled.

Post-cancellation, taxpayers are required to file any pending GST returns, settle outstanding tax liabilities, and reverse any unutilized input tax credits (ITC). It’s essential for businesses to comply with these requirements to ensure a smooth exit from the GST regime. Properly completing the cancellation process helps avoid penalties and ensures that the taxpayer’s obligations under GST are formally concluded in accordance with the law.

GST Notice Reply

When a taxpayer receives a GST notice from the authorities, it typically requires prompt and careful attention. GST notices can be issued for various reasons, such as discrepancies in filed returns, non-payment or short-payment of taxes, mismatch in input tax credit (ITC) claims, or requests for additional information. The first step upon receiving a notice is to thoroughly review its contents and understand the specific issues raised by the tax authorities.

Crafting a well-prepared reply is crucial. This involves gathering and presenting relevant documents, clarifying any misunderstandings, and addressing each point raised in the notice comprehensively. Timeliness in responding to GST notices is essential to avoid penalties or adverse actions. Seeking professional advice from tax consultants or legal experts can be beneficial in formulating a structured and legally sound response, ensuring compliance with GST regulations and resolving issues amicably with the authorities.

GST Modification & Correction

GST modification and correction processes are crucial for ensuring accuracy and compliance within the Goods and Services Tax framework in India. Modifications typically involve updating or revising information such as business details, contact information, or authorized signatories in the GST registration. These changes are essential for maintaining up-to-date records and adhering to regulatory requirements. The process for modifications generally involves submitting an application through the GST portal, providing necessary supporting documents, and awaiting approval from the GST authorities.

Similarly, corrections in GST filings are necessary to rectify errors or discrepancies in submitted returns, such as incorrect reporting of sales or purchases, calculation mistakes, or input tax credit (ITC) adjustments. It’s important for taxpayers to promptly identify and rectify such errors to avoid penalties and maintain compliance. Corrections can be made through online filing of revised returns or by submitting applications for rectification, ensuring that all financial data accurately reflects the business transactions conducted under GST guidelines.

Time Required for GST Refund

The time required for GST refund processing in India can vary depending on several factors, including the type of refund, completeness of the application, and workload of the GST authorities.

The statutory timeframe for GST refund disbursement is 60 days, it’s important for taxpayers to ensure timely submission of accurate and complete refund applications to facilitate faster processing and receipt of refunds.