1. Refunds in gst Shalimar Study Circle of NIRC of ICAI
NOTE:
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Ashu Dalmia 8th June 2018

2. Categories of refund

3. Refund of the excess balance amount available in the Cash Ledger
Refund of ITC accumulated against the inputs and input services attributed to supply of export of goods or services.
Refund of ITC on account of deemed export
Refund of Integrated tax, paid on export of goods/services to SEZ developers/ units
Refund of ITC accumulated due to inverted tax structure
Refund of the Integrated Tax paid on goods exported out of India
Refund of Integrated tax paid on the services exported out of India
Refund of Integrated tax paid against any deemed export
Refund of ITC attributed to the goods and / or services exported to SEZ units / developers

4. Refund of Interest paid due to mismatch of ITC.
Refund Application of an Embassies/Consulate, UNO agency or Multilateral Financial Institution and organization
Refund of IGST to International Tourist at the time of leaving India
Refund Payment due to Statutory order of the adjudicating authority/courts/ tribunal etc.
Casual Person/non-resident taxable person refund
Refund by unregistered person
Refund of Interest paid due to mismatch of ITC.

5. Refund against export

6. Refund of GST Against Export
IGST Paid of outward Supply
Rule-96
Restriction-Deemed Export/Merchant Exporter
IGST,CGST+SGST/UTGST ,CESS paid on Inward Supply
Rule 89
89 (4)
89 (4A)
89 (4B)

7. Track status on GSTN of invoice data to be shared with ICEGATE

8. ISSUES in REFUND OF IGST AGAINST EXPORT

9. IGST refund for exports cannot be claimed:
By exporters who are directly receiving goods from those suppliers who are availing the benefit under
notification No. 48/2017-Central Tax dated the 18th October, 2017,
notification No. 40/2017-Central Tax (Rate) dated the 23rd October, 2017,
notification No. 41/2017-Integrated Tax (Rate) dated the 23rd October, 2017
notification No. 78/2017 Customs dated the 13th October, 2017
notification No. 79/2017-Customs dated the 13th October,2017.

10. Supplies to be treated as Deemed Export
Notification No. 48/2017 of CT
Supplies to be treated as Deemed Export
Notification No. 40/2017 of CTR
Merchant Exporter exempt tax in excess of 0.05% in case of Intra state supplies
Notification No. 41/2017 of IGST(Rate)
Merchant Exporter exempt tax in excess of 0.1% in case of Inter state supplies
Notification No. 78/2017 of Custom
Seeks to exempt goods imported by EOUs from integrated tax and compensation cess
Notification No. 79/2017 of Custom
Seek to amend various Customs exemption notifications to exempt Integrated Tax/Cess on import of goods under AA/EPCG. schemes

11. Exception to this restriction:- CGST circular 45/2018 dated 30th May 2018
Restriction is not applicable when Supplier has not availed the benefit, however who have in turn received the goods from registered person availing the benefit.
Goods manufactured from such capital goods imported under such benifit

12. IGST Refund Not Granted
Mismatch in Form 3b and GSTR 1
Mismatch in Shipping Bill /EGM and GSTR

13. Mismatch in GSTR 3B and GSTR 1-Goods
Data Not Transmitted from GSTN
No Short Payment
IGST paid 3.1 (a) and 3.1(b) >=GSTR1
For July to March’2018
Short Payment
IGST paid 3.1(a)(3.1b)<=GSTR1
Custom Circular 12/2018 dated 29th May 2018

14. Mismatch in GSTR 3B and GSTR 1-Goods
Process for no Short payment cases:
Chartered Accountant Certificate by 31st October to office at the port of export along with copy to jurisdictional GST office
List will be Sent to DG (Audit)/DG(GST)
Custom Circular 12/2018 dated 29th May 2018

15. Mismatch in GSTR 3B and GSTR 1-Goods
Process for Short payment cases:
For short amount up to 10 lacs self-certified copy of challan to concerned custom office of port of export
For short amount more than10 lacs copy of challan to concerned custom office of port of export along with CA certificate that shortfall amount has been liquidated
Accountant Certificate by 31st October to office at the port of export along with copy to jurisdictional GST office
List will be Sent to DG (Audit)/DG(GST)
Custom Circular 12/2018 dated 29th May 2018

16. Mismatch in GSTR 3B and GSTR 1-Services
Issues:
Error in filing GSTR-3B: Shown in Column 3.1(a) instead of column 3.1(b) While correct filing of GSTR-1
Clarification:-
Allowed to file refund for July to March’17 subject to the condition that the amount of refund of integrated tax/cess claimed shall not be more than the aggregate amount of integrated tax
CGST Circular 45/2018 dated 30th May 2018 if correction not possible as per CGST circular 26/2017 dated 29th Dec 2017

17. Mismatch in Shipping Bill,EGM,GSTR
Error
Solution
EGM mismatch/ not filed
Custom Circular 06/2018 dated
GSTIN mismatch -
Invalid SB Details
Circular 37/2018 dated
Invoice Mismatch
Custom Circular 05/2018 dated
Custom circular 8/2018 6th June 2018

18. Mismatch in Shipping Bill,EGM,GSTR
Error Code
Description
Procedure to amend errors.
Error code no. SB001
Incorrect SB number in GSTR 1/Table 6A
Rectified by making amendments in GSTR 1 by using Form 9A. Form 9A has been made available by GSTN w.e.f in exporter’s login at the GST common portal
(Circular no. 42/2017 dated 7/11/2017)
Error code no.SB002
EGM not filed
Exporter has to approach their shipping line/airline/carrier to file the EGM immediately.

19. Mismatch in Shipping Bill,EGM,GSTR
Error Code
Description
Procedure to amend errors.
Error code no. SB003
GSTIN declared in the SB does not match with the GSTIN mentioned in the corresponding GST return
Exporter has to make necessary changes in GSTR 1 by use of amendment Form 9A. Exporters should note that there is no provision of amendment in the shipping bill once the EGM is filed.
Error code no. SB004
error due to duplicate/ repeat transmission of shipping bill-invoice record from GSTN
The previous transmission would have already been validated for IGST refund by ICES
Error code no. SB005
error due to mis-match of invoice number as declared in the invoice table of the shipping bill and that declared in the GSTR 1 for the same supply
If SB005 is due to a data entry mistake in GSTR 1, it can be amended in Form 9A. But any mistake in the SB cannot be amended once EGM is filed. Also, if the exporter has used a separate invoice in the SB, he cannot include that in his GSTR 1 in lieu of his GST invoice. Thus, SB005 error, as of now, cannot be corrected by any amendment either in GSTR-1 or in the Shipping Bill.

20. REFUND OF ITC AGAINST EXPORT

21. Manner of Computation of Refund of Unutilized ITC
Details for Refund –rule 89
Manner of Computation of Refund of Unutilized ITC
Least of the following is eligible:
Closing balance of ITC before claiming refund
Maximum refund amount computed as per formula mentioned under Rule 89(4) of CGST Rules given below
Formula u/r 89(4):
Refund Amount = Turnover of Zero-Rated Supply of Goods/Services X Net ITC
Adjusted Total Turnover

22. Notes:
Refund amount : Maximum admissible refund.
Net ITC : ITC availed on inputs and input services during the relevant period other than the input tax credit availed for which refund is claimed under sub-rules (4A) or (4B) or both.
Turnover of zero-rated supply of goods : means the value of zero-rated supply of goods made during the relevant period without payment of tax under bond or letter of undertaking, other than the turnover of supplies in respect of which refund is claimed under sub-rules (4A) or (4B) or both;
Turnover of zero-rated supply of services : means the value of zero-rated supply of services made without payment of tax under bond or letter of undertaking, calculated in the following manner, namely:-
Zero-rated supply of services is –
the aggregate of the payments received during the relevant period for zero-rated supply of services
(+)
zero-rated supply of services where supply has been completed for which payment had been received in advance in any period prior to the relevant period
(-)
advances received for zero-rated supply of services for which the supply of services has not been completed during the relevant period;

23. Notes:
5. Adjusted Total turnover : means the turnover in a State or a Union territory i.e. the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis) and exempt supplies made within a State or Union territory by a taxable person, exports of goods or services or both and inter-State supplies of goods or services or both made from the State or Union territory by the said taxable person but excludes central tax, State tax, Union territory;
The following will be excluded –
the value of exempt supplies other than zero-rated supplies and
the turnover of supplies in respect of which refund is claimed under sub rules (4A) or (4B) or both, if any, during the relevant period.
Relevant period : means the period for which the claim has been filed.
As per Circular No. 37/11/2018-GST, the exporter, at his option, may file refund claim for one calendar month / quarter or by clubbing successive calendar months / quarters. The calendar month(s) / quarter(s) for which refund claim has been filed, however, cannot spread across different financial years.

24. Rule 89(4A) and 89(4B)
Supplies on which the supplier has availed certain benefits
Rule 89(4A)
Notification No. 48/2017-CT
ITC in respect of other inputs and input services used in making zero-rated supply shall be granted as refund
Supplies to be treated as Deemed Export

25. Rule 89(4A) and 89(4B)
Supplies on which the supplier has availed certain benefits
Rule 89(4B)
Notification No. 40/2017-CTR
Notification No. 41/2017-IGST(Rate)
Notification No. 78/2017-Custom
Notification No. 89/2017-Custom
ITC in respect of other inputs and input services used in making zero-rated supply and ITC in respect of inputs received under the said notifications shall be granted as refund
Merchant Exporter in case of Intra-state supplies
Merchant Exporter in case of Inter-state supplies
Goods imported by EOU
Import of goods under AA/EPDG Schemes

26. Example Particulars Amount (Rs.)
Export Turnover (without payment of tax)
75,000
Domestic Turnover (Inter-State)
1,25,000
Output IGST (125000*18%)
(Dr. In Electronic Liability Ledger)
22,500
ITC availed during the relevant period -
IGST
(Cr. In Electronic Credit Ledger)
9,500
CGST
SGST

27. Computation of Refund
Step – 1: Maximum refund amount as per formula under Rule 89(4)
Particulars
IGST
CGST
SGST
Refund Amount
9,500 X 75,000
2,00,000
3,563
Step – 2: Closing balance of ITC before claiming refund
Particulars
IGST
CGST
SGST
ITC Availed (Cr. In Electronic Credit Ledger)
9,500
Utilization of ITC for payment of Output IGST Rs. 22,500 (Dr. In Electronic Credit Ledger & Cr. In Electronic Liability Ledger)
3,500
Closing balance of ITC (Cr. In Electronic Credit Ledger)
Nil
6,000
Step – 3: Eligible amount of Refund
Particulars
IGST
CGST
SGST
Least of Step-1 and Step-2
Nil
3,563

28. Documents and information for ITC refund

29. Rule
Description
Documentary Evidence/Details
Statement Number as per RFD 01 A
89(2)(b)
Refund on account of export of goods
Shipping Bill or Bill of Export
Export Invoice 3
89(2)(c)
Refund on account of export of services
Copy of BRC/FIRC for export of services
2 & 3
89(2)(d) and 89 2(f)
Refund on account of supply of goods made to SEZ unit/developer
Tax (Export) Invoice
Endorsement specified in the 2nd proviso to Rule 89(1) 4
If supplier claims refund than a declaration to the effect that SEZ unit/developer has not availed ITC
89(2)(e) and 89(2)(f)
Refund on account of supply of services made to SEZ unit/developer
Details of payment
89(2)(g)
Refund on account of Deemed Exports
Evidence as may be notified by the Government 5B
89(2)(h)
Refund on account of Inverted duty structure (Other than NIL rated or fully exempt supplies)
Tax Invoice issued
Tax invoice received 1A

30.  List of Documents required for processing the Refund
Type of Refund
Documents
Export of Services with payment of tax (Refund of IGST paid on export of services)
Copy of FORM RFD-01A filed on common portal
Copy of Statement 2 of FORM RFD-01A
Invoices w.r.t. input, input services and capital goods
BRC/FIRC for export of services
Undertaking / Declaration in FORM RFD-01A
Export (goods or services) without payment of tax (Refund of accumulated ITC of IGST / CGST / SGST / UTGST / Cess)
Copy of Statement 3A of FORM RFD-01A generated on common portal
Copy of Statement 3 of FORM RFD-01A
Invoices w.r.t. input and input services
CGST Circular 37/ th March 2018

31. REFUND –Clarifications circular 45/2018 dated 30th May 2018

32. Unutilized ITC of compensation cess availed on inputs in cases where final product is not subject to levy of Cess
Cess is not leviable on aluminum product however cess is applicable on coal which is input for aluminum product
it is clarified that a registered person making zero rated supply of aluminum products under bond or LUT may claim refund of unutilized credit including that of compensation cess paid on coal.

33. -LUT/bond is not required
Whether bond or LUT is required for export of exempted or non GST goods and Whether refund can be claimed by the exporter of such goods
-LUT/bond is not required
-Shall comply with the requirements prescribed under the existing law
-exporter would be eligible for refund of unutilized ITC

34. Summary of Legal Provisions

35. CGST ACT 2017
SECTION
DESCRIPTION
49(6)
Refund of Balance in the electronic cash ledger or electronic credit ledger
54(1)
Refund of Tax & Interest
54(2)
Refund by Specified Persons
54(3)
Refund of ITC
54(4)
Documents with Refund Application
54(5)
Refund Order
54(6)
Provisional Refund
54(7)
Refund Order within 60 days from receipt of application
54(8)
Refund Available - Cases
54(9)
No refund except specified u/s 54(8)
54(10)
Withhold refund of ITC or deduct any tax, interest, etc due from refund
54(11)
Withholding of refund due to any appeal, pending proceedings
54(12)
Interest for withheld refund
54(13)
Advance tax by casual / non-taxable person
54(14)
No refund below Rs. 1,000/-

36. SECTION
DESCRIPTION 55
Refund in Certain Cases 56
Interest on Delayed Refunds 57
Consumer Welfare Funds 58
Utilisation of Fund 77
Tax wrongfully collected and paid to Central Government or State Government
IGST ACT 2017
SECTION
DESCRIPTION 16
Zero Rated Supply 15
Refund to International Tourist

37. CGST Rules 2017
SECTION
DESCRIPTION 89
Application for refund of tax, interest, penalty, fees or any other amount 90
Acknowledgement 91
Grant of Provisional refund 92
Order Sanctioning Refund 93
Credit of the amount of rejected refund claim 94
Order sanctioning interest on delayed refunds 95
Refund of tax to certain persons 96
Refund of integrated tax paid on goods exported out of India
96A
Refund of integrated tax paid on export of goods or services under bond or Letter of Undertaking 97
Consumer Welfare Fund
97A
Manual filing and processing

38. REFUND FORMS
Refund Forms
Description
GST-RFD-01
Application for Refund
GST-RFD-01A
Application for Refund (Manual)
GST-RFD-01B
Refund order details (Manual)
GST-RFD-02
Acknowledgement
GST-RFD-03
Deficiency Memo
GST-RFD-04
Provisional Refund Order
GST-RFD-05
Payment Advice
GST-RFD-06
Refund sanction/Rejection Order
GST-RFD-07
Order for Complete adjustment of sanctioned refund
GST-RFD-08
Notice for rejection of application for refund
GST-RFD-09
Reply to show cause notice
GST-RFD-10
Application for Refund by any specialized agency of UN or any Multilateral Financial Institution and Organization, Consulate or Embassy of foreign countries, etc.
GST-RFD-11
Furnishing of bond or Letter of Undertaking for export of goods or services

39. ICE-GATE REGISTRATION

41. REFUND –Deemed Export

42. Meaning of Deemed Export
Section 2(39) of CGST Act 2017-
“deemed exports” means such supplies of goods as may be notified under section 147;
Section 147 of CGST Act :-
The Government may, on the recommendations of the Council, notify certain supplies of goods as deemed exports, where goods supplied do not leave India, and payment for such supplies is received either in Indian rupees or in convertible foreign exchange, if such goods are manufactured in India.

43. Supplies to be Deemed Export
Notification no. 48/2017 of Central Tax dated 18/10/2017
Supply of goods by a registered person against Advance Authorisation
(Chapter 4 of FTP)
2. Supply of capital goods by a registered person against Export Promotion Capital
Goods Authorisation (Chapter 5 of FTP)
Supply of goods by a registered person to Export Oriented Unit
(Chapter 6 of FTP)
4. Supply of gold by a bank or Public Sector Undertaking specified in the notification No. 50/2017-Customs, dated the 30th June, 2017 (as amended) against Advance Authorisation.

44. Who Can Apply for Refund
Refund under Deemed Exports
Who Can Apply for Refund
Notification no. 47/2017 of Central Tax dated 18/10/2017
Refund by Supplier of deemed export supplies
Refund by Recipient of deemed export supplies

45. Return Return for Deemed Exports GSTR-01-Table 6C
GSTR-3B- Table 3.1 (a)

46.
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