CH.SUDHEER C.A, C.M.

A DAY 14 Refund

Chapter 14 REFUND

Types of Refunds

Refund of Refund in case Refund of case Refund of case Refund of case Refund of case
balance in of Inverted in Exports of in Exports of in supplies to in deemed
electronic Duty Structure Goods Services SEZ export
cash ledger

Refund of case Refund of Refund as Refund as a

in tax wrongly excess Finalization of consequence
collected & payment of tax provision of decrees of
paid to Assessment court
Government

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 CH.SUDHEER C.A, C.M.A DAY 14 Refund

Procedure for claiming Refund

Issue sanction order to

Acknowledgement
No Discrepancies
in GSTRFD– 02 Within 60 days
form after due
Application in verification of all
GSTRFD - 01 aspects PAO/CBIC in To Assessee in
form GST RFD – 05 GST RFD – 06
Discrepancies Deficiency form form
found Memo in If application is
GSTRFD-03 form invalid
Fill complete
application Adjustment of
Issue SCN in refund in
GST RFD- 08 GST RFD – 07
Reply satisfactory
Attachments Again File GST RFD – 01 Reply by assessee
specified rectifying those defects in GST RFD - 09

If reply not satisfactory

 In case of export of Goods, then provisional Refund

@ 90% of refund claimed will be sanctioned within 7 Then issue rejection
days of application in GST RFD – 04, order in GSTRFD - 06
 Balance will be sanctioned GSTRFD-05/06 after
complete verification.

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 CH.SUDHEER C.A, C.M.A DAY 14 Refund

1. REFUND OF TAX [SECTIONS 54 OF THE CGST ACT]

1. Refund of Balance in Electronic Cash Ledger

S.N Particulars Special Points

1. Time limit for Filing Refund Claim Within 2 years from the date of Payment of Tax
2. Procedure Refund Application in GST RFD-01
3. What assessee is going to get Refund Balance in Electronic Cash Ledger
4. Attachments No Attachments

2. Refund in Case of Inverted Duty Structure

S.N Particulars Special Points

1. Meaning Tax Rate on Inward supply is higher than Outward Supply
2. Time limit for Filing Within 2 yrs due date of Filing GSTR-3B
Refund Claim
3. Procedure Application in GST RFD-01
4. What assessee is going Unutilized ITC on Input & Input services used relating to Inverted Duty
to get Refund Structure
5. Unutilized ITC of ITC on Input & 𝐼𝑛𝑝𝑢𝑡 𝑆𝑒𝑟𝑣𝑖𝑐𝑒𝑠
Inverted Duty Structure Inverted Turnover
× – (Tax paid on Inverted Turnover)
(Rule 89) Total Turnover
(Here Turnover excludes Exempted Turnover)
6. Maximum Refund a) Unutilized ITC calculated above
(or)
b) Balance in Electronic Credit Ledger
7. Attachments a) Statement 1 (i.e., Formula in Point 4)
b) Statement 1A (Details of Purchases & Sales)(JSON FILE)
(Unless otherwise c) Copy of GSTR 2A
specified, attachment d) Statement of Invoices in Annexure B
should be in PDF (Given at end of chapter)
Format) e) If refund amount does not exceed Rs.2,00,000 :
Self declaration that there is no Unjust Enrichment (i.e., duty
burden has not been passed on to customer)
f) If refund amount exceeds Rs.2,00,000 :
Certificate from CA/CMA in Annexure 2 that there is no Unjust
Enrichment
(Given at end of this chapter)

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 CH.SUDHEER C.A, C.M.A DAY 14 Refund

3. Refund in Case of Exports of Goods

a) Export Without payment of Tax (i.e., LUT /Bond submitted)

S.N Particulars Special Points

1. Time limit for Filing Refund Claim Within 2 yrs from Export

2. Procedure Application in GST RFD-01

3. What assessee is going to get Unutilized ITC on Input & Input services used for
Refund Exports
4. Unutilized ITC ITC on Input & 𝐼𝑛𝑝𝑢𝑡 𝑆𝑒𝑟𝑣𝑖𝑐𝑒𝑠 ×
Export Turnover
(Rule 89) Total Turnover
(Here Turnover excludes Exempted Turnover)
5. Maximum Refund a) Unutilized ITC calculated above
(or)
b) Balance in Electronic Credit Ledger
6. Attachments a) Statement 3A ( JSON Format)
b) Copy of GSTR 2A
(Unless otherwise specified, c) Statement of Invoices in Annexure B
attachment should be in PDF (Given at end of chapter)
Format) d) Self attested copies of invoices not found in
GSTR 2A
e) Copy of Shipping Bills
f) Bank Realization Certificate (BRC)

b) Export with payment of Tax (i.e., LUT/Bond not submitted)

S.N Particulars Special Points

1. Time limit for Filing Refund Within 2 yrs from payment of Tax
Claim
2. Procedure a) Fill Shipping bill & Invoice details in GSTR-1 (Table 6A)
b) Fill Export Turnover details in GSTR – 3B (Table 3.1(b))
c) No need to File GST RFD – 01 because based on (a) &
(b) above automatic Refund shall be sanctioned by
Department of Customs
3. What assessee is going to IGST paid in GSTR 3B either by way of Cash or Credit Ledger
get Refund
4. Attachments -----

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 CH.SUDHEER C.A, C.M.A DAY 14 Refund

4. Refund in Case of Exports of Services

a) Export Without payment of Tax (i.e., LUT /Bond submitted)

S.N Particulars Special Points

1. Time limit for Filing Refund With in 2 yrs from

Claim a) Date of Invoice
b) Date of Receipt of payment
2. Procedure

3. What assessee is going to

get Refund
Same as in Goods
4. Unutilized ITC
(Rule 89)
5. Maximum Refund

6. Attachments a) Statement 3A ( JSON Format)

b) Copy of GSTR 2A
(Unless otherwise c) Statement of Invoices in Annexure B
specified, attachment (Given at end of chapter)
should be in PDF Format) d) Self attested copies of invoices not found in GSTR 2A
e) Copy of Foreign Inward Remittance Certificate (FIRC)

b) Export With payment of Tax (i.e., LUT /Bond not submitted)

S.N Particulars Special Points

1. Time limit for Filing Refund Within 2 yrs from Payment of Tax
Claim
2. Procedure Application in GST RFD-01
3. What assessee is going to IGST paid in GSTR 3B either by way of Cash or Credit
get Refund Ledger
4. Attachments a) Copy of GSTR 2A
b) Statement of Invoices in Annexure B
(Unless otherwise (Given at end of chapter)
specified, attachment c) Self attested copies of invoices not found in GSTR
should be in PDF Format) 2A
d) Copy of Foreign Inward Remittance Certificate
(FIRC)
e) If assessee wants Provisional Refund :
Self-declaration regarding non-prosecution for
Tax evasion does exceeding 2.5 crores

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 CH.SUDHEER C.A, C.M.A DAY 14 Refund

5. Refund in Case of Supplies to SEZ

a) Supply Without payment of Tax (i.e., LUT /Bond submitted)

S.N Particulars Special Points

1. Time limit for Filing Refund With in 2 yrs from Date of Invoice
Claim
2. Procedure Application in GST RFD-01

3. What assessee is going to Unutilized ITC on Input & Input services used for Exports
get Refund
4. Unutilized ITC Supplies to SEZ
ITC on Input & 𝐼𝑛𝑝𝑢𝑡 𝑆𝑒𝑟𝑣𝑖𝑐𝑒𝑠 ×
(Rule 89) Total Turnover
(Here Turnover excludes Exempted Turnover)
5. Maximum Refund a) Unutilized ITC calculated above
(or)
b) Balance in Electronic Credit Ledger
6. Attachments a) Statement 5A ( JSON Format)
b) Copy of GSTR 2A
(Unless otherwise c) Statement of Invoices in Annexure B
specified, attachment (Given at end of chapter)
should be in PDF Format) d) Self attested copies of invoices not found in GSTR 2A
e) Endorsement(s) from the specified officer of the SEZ
regarding receipt of goods/services for authorized
operations
g) If refund amount does not exceed Rs.2,00,000 :
Self declaration that there is no Unjust Enrichment (i.e.,
duty burden has not been passed on to customer)
h) If refund amount exceeds Rs.2,00,000 :
Certificate from CA/CMA in Annexure 2 that there is no
Unjust Enrichment (Given at end of this chapter)

b) Supply With payment of Tax (i.e., LUT /Bond not submitted)

S.N Particulars Special Points

1. Time limit for Filing Refund Within 2 yrs from Payment of Tax
Claim
2. Procedure Application in GST RFD-01
3. What assessee is going to IGST paid in GSTR 3B either by way of Cash or Credit
get Refund Ledger
4. Attachments Endorsement(s) from the specified officer of the SEZ
regarding receipt of goods/services for authorized
operations

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 CH.SUDHEER C.A, C.M.A DAY 14 Refund

6. Refund in Case of Deemed Exports

a) Refund to be claimed by Supplier (If Tax not collected)

S.N Particulars Special Points

1. Time limit for Filing Refund Claim Within 2 yrs from Date of filing GSTR 3B

2. Procedure Application in GST RFD-01

3. What assessee is going to get IGST paid on supplies to

Refund a) Advance Authorization Holder
b) 100% EOU Under FTP
c) EPCG Scheme holder
4. Attachments a) Statement 5B ( JSON Format)
b) Acknowledgement from the specified officer of
(Unless otherwise specified, the Recipient regarding receipt of goods/services
attachment should be in PDF c) Declaration from Recipient that ITC is not availed
Format) by such unit

b) Refund to be claimed by Recipient (If Tax collected)

S.N Particulars Special Points

1. Time limit for Filing Refund Claim Within 2 yrs from Date of filing GSTR 3B

2. Procedure Application in GST RFD-01

3. What assessee is going to get IGST paid on supplies received by

Refund a) Advance Authorization Holder
b) 100% EOU under FTP
c) EPCG Scheme holder
4. Attachments a) Statement 5B ( JSON Format)
b) Acknowledgement from the specified officer of
(Unless otherwise specified, the Recipient regarding receipt of goods/services
attachment should be in PDF c) Declaration from Recipient that ITC is not availed
Format) by such unit

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7. Tax wrongfully Collected & Paid

S.N Particulars Special Points

1. Meaning Refund of tax paid on intra-state supply which is

subsequently held to be an inter-state supply and vice
versa
2. Time limit for Filing Refund Claim Within 2 yrs from date of payment of Tax

3. Procedure Application in GST RFD-01

4. What assessee is going to get Wrong Tax paid

Refund
5. Attachments Statement 6 (JSON)

8. Refund of Excess payment of Tax

S.N Particulars Special Points

1. Time limit for Filing Refund Claim Within 2 yrs from payment of Tax

2. Procedure Application in GST RFD-01

3. What assessee is going to get Excess Tax paid in GSTR 3B

Refund
4. Attachments a) Statement 7 ( JSON Format)
b) If refund amount does not exceed Rs.2,00,000 :
(Unless otherwise specified, Self declaration that there is no Unjust
attachment should be in PDF Enrichment (i.e., duty burden has not been
Format) passed on to customer)
c) If refund amount exceeds Rs.2,00,000 :
Certificate from CA/CMA in Annexure 2 that
there is no Unjust Enrichment (Given at end of
this chapter)

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9,10. Refund after Finalization of Provisional Assessment/ Appeal or any other order

S.N Particulars Special Points

1. Time limit for Filing Refund Claim Within 2 yrs from payment of Tax

2. Procedure Application in GST RFD-01

3. What assessee is going to get Excess Tax paid in GSTR 3B

Refund
4. Attachments a) Reference number of the order and a copy of
the Assessment / Provisional Assessment /
(Unless otherwise specified, Appeal / Any Other Order
attachment should be in PDF b) Reference number/proof of payment of pre-
Format) deposit made earlier for which refund is being
claimed
c) If refund amount does not exceed Rs.2,00,000 :
Self declaration that there is no Unjust
Enrichment (i.e., duty burden has not been
passed on to customer)
d) If refund amount exceeds Rs.2,00,000 :
Certificate from CA/CMA in Annexure 2 that
there is no Unjust Enrichment (Given at end of
this chapter)

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Minimum refund claim [Section 54(12)]

No refund shall be paid to an applicant, if the amount is less than
₹ 1,000.The limit of ₹ 1,000 shall apply for each tax head separately
and not cumulatively. Further, the limit would not apply in cases of
refund of excess balance in the electronic cash ledger

Options under GST in case of exports

Generally export of goods or services is zero rated .But any of the following two options have to
be choosed

If Bond/ letter of If LUT is not submitted

Undertaking is submitted
(LUT) binding himself to pay
the tax due if export not
made within the specified
time limit,

No need to pay any GST in Pay IGST at time of supply.

such case initially After making export-Claim
refund of IGST

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Clarification on issues related to furnishing of Bond/Letter of Undertaking for

exports [Circular No. 8/8/2017 GST dated 04.10.2017]

Time for Bank

Validity Documents acceptance guarante
of LUT for LUT of e
LUT/Bond

Since the facility of

The LUT shall be valid Self-declaration
declaration by the Within a period of export under LUT has
for the whole financial exporter to the effect three working days of been extended to all
year in which it is that he has not been its receipt. If the LUT / registered persons,
tendered. prosecuted should bond is not accepted bond will be required
suffice. Verification, if within a period of to be furnished by
any, may be done on three working days those persons who
post-facto
facto basis. from the date of have been prosecuted
submission, it shall for cases involving an
deemed to be amount exceeding `
accepted. 2,50,000. A bond, in all
cases, shall be
accompanied by a
bank guarantee of 15%
of the bond amount.

INTEREST ON DELAYED REFUNDS [SECTION 56 OF CGST ACT]

Interest on amount refundable

consequent to order passed in an
Interest is payable on such refund @ appeal or further proceedings Interest
6% p.a.* after the expiry of 60 days is payable on such refund @ 9% p.a.*
from the GST RFD-02 after the expiry of 60 days from the
date of receipt of application filed
consequent to such order

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ABOUT THE SPEAKER

CA CHUNDURU SUDHEER is a Chartered Accountant by profession. He has been consistent topper at School &
college level.

He has completed both CA & CMA at young age of 21

His achievements during study

a) All India 6th Ranker at Final level

b) All India 43rd rank at ICWA Inter
c) Received PRATHIBA award from AP State Government in Intermediate
d) District 1st ranker in Intermediate

Achievements in professi on

a) Given various GST seminars for Accountants & Chartered Accountants at Vijayawada,
Guntur, Ongole, Eluru
b) As of now he presented GSTR 9 & 9C in 20+ seminars
c) Has taken CPE Lectures at VIJAYAWADA, ELURU, GUNTUR, KAKINADA ICAI Branches
d) At present he is a member of Indirect Tax committee AP CHAMBER OF COMMERCE

A chievements in professional T eaching

a) Deals with Direct & Indirect taxes to CA & CMA FINAL Students from past 6 years
b) His Income tax & GST teaching reached to over 3000+ students as of now

Sudheer sir O ffi ce Address:

CHUNDURU SUDHEER & CO
FLAT NO.102, MAHALAKSHMI TOWERS BESIDE
PADMASALI FUNCTION HALL PYDIAH STREET, LABBIPET
VIJAYAWADA- 520010
Email id: [email protected]

STUDY MATERIAL & Classes On INCOME TAX & GST

Contact: 94917 80817, 86883 98888

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