INTRODUCTION - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

CHAPTER VI REFUND UNDER GST 1. INTRODUCTION 1.1. Government of India levies and collects duties and taxes from the taxpayers. However, in specified situations, if any amount, which is not due to the Government is paid by any person then the Government refunds the such amount to such person, on following the due process prescribed under the GST law. 1.2. The relevant provisions of the CGST Act, 2017 and the CGST Rules, 2017, pertaining to this Chapter are as under Sr. No. Section / Rule Provision pertaining to 1. Section 27 of CGST Act, 2017 Special provisions relating to casual taxable person and non-resident taxable person 2. Section 54 of CGST Act, 2017 Refund of tax 3. Section 55 of CGST Act, 2017 Refund in certain cases 4. Section 56 of CGST Act, 2017 Interest on delayed refunds 5. Section 107 of CGST Act, 2017 Appeals to Appellate Authority 6. Section 112 of CGST Act, 2017 Appeals to Appellate Tribunal 7. Section 115 of CGST Act, 2017 Interest on refund of amount paid for admission of appeal 8. Section 16 of IGST Act, 2017 Zero rated supply 9. Rule 89 of CGST Rules, 2017 Application for refund of tax, interest, penalty, fees or any other amount 10. Rule 90 of CGST Rules, 2017 Acknowledgement 11. Rule 91 of CGST Rules, 2017 Grant provisional refund 12. Rule 92 of CGST Rules, 2017 Order sanctioning refund 13. Rule 93 of CGST Rules, 2017 Credit of the amount of rejected refund claim 14. Rule 94 of CGST Rules, 2017 Order sanctioning interest on delayed refunds 15. Rule 95 of CGST Rules, 2017 Refund of tax to certain persons 16. Rule 96 of CGST Rules, 2017 Refund of integrated tax paid on goods (or services) exported out of India 17. Rule 96A of CGST Rules, 2017 Export of goods or services under Bond or Letter of Untertaking 18. Rule 96B of CGST Rules, 2017 Recovery of refund of unutilized input tax credit or integrated tax paid on export of goods where export proceeds not realized. 19. Rule 96C of CGST Rules, 2017 Bank Account for credit of refund 1.3. GST refund is a process in which, any person (registered or unregistered) can claim refund of any balance in electronic cash ledger or any tax, interest, penalty, fees or any other amount paid which was not required to be paid by him. Refund under the GST law includes: - (a) Any balance amount in the electronic cash ledger or any tax which was paid in excess; (b) Interest paid on such tax; (c) Any other amount paid, which was not required to be paid; (d) Tax paid on export of goods or services or both, tax paid on the deemed exports as notified in Notification No. 48/2017-C.T. dated 18.10.2017, as amended; (e) Any unutilized input tax credit on account of- (i) zero rated supplies made without payment of tax; or, (ii) inverted duty structure. (f) Supply which is not provided, either wholly or partially and for which invoice has not been issued or refund voucher has been issued; (g) Any other amount paid on intra-State supply, which is subsequently held to be inter-State supply and vice versa; (h) Refund to Casual Taxable Person/ Non-Resident Taxable Person (subject to furnishing all returns for the period of continuity of registration); (i) Refund of pre-deposit; (j) Tax paid by the notified agency of UNs or Embassy/Consulate, etc. on inward supply. 1.4. GST provides for an efficient invoice based tracking system with the help of the periodical GSTR-1 Returns, wherein the registered person furnishes the details of the outward supplies, which help in verifying the transactions on an individual basis and thus, allowing systematic checking of the same. 1.5. Timely refund of the amount claimed is essential in tax administration, as it facilitates trade through release of blocked funds for working capital, expansion and modernization of existing business. 1.6. The provisions pertaining to refund contained in the GST law aim to streamline and standardise the refund procedures. The claim and sanctioning procedure are completely online and time bound. 1.7. All types of refunds, including the refund of input tax credit and refund of IGST paid on export of services is handled by GST department, except refund of IGST paid on goods exported, which is handled by Customs. 1.8. Refund claim needs to be filed within two years from the relevant date .