When the amount of GST paid is more than the GST liability, a taxpayer is liable to claim GST refund. To make the process hassle-free, the entire procedure has been standardized. This process is online and the time period for claiming the refund has also been fixed.
In which cases can refunds be claimed?
• When exports (including deemed exports) take place and there is a cumulative balance of input credit arising out of such exports or under a claim of the rebate.
• When credit gets accumulated due to the output tax being nil or exempted from tax.
• When a taxpayer pays more tax by mistake.
• In cases when a refund may arise after a provisional assessment
• In case of an appeal for a respondent, the amount made as a deposit towards holding such appeal will be refunded to the appellant
• When refund takes place after an adjudicating officer has investigated and found discrepancies
• In case of purchases made by the foreign embassies or bodies of the United Nations, a refund can be provided.
• When credit gets accumulated due to output tax being of a lesser rate than the input
• When suppliers receive discounts or credits by means of issuance of credit notes
• When tourists from outside the country pay GST
However, the most common refund rules under GST include:
– Unutilized input tax credit due to inverted duty structure
– Unutilized input tax credit due to output supplies being exports or zero-rated supplies
– When tax is paid on the inward supply of goods and/or services which have been exported or on inputs or input services used in goods and/or services exported
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