Introduction:
- Type of refund to exporters under GST
- Process of the refund to the exporter under GST
- Documents required for refund under GST
- Relevant dates for refund applications under GST for exports
- Various time lines for Export refunds
Type of Refund to Exporters Under GST.
As we know there are two options to exports under GST Refund procedure for both the option is different.
| Option |
Type of Export |
Refund Process |
| Option – 1 |
Exports made on payment of IGST |
System designated by customs shall process the claim for refund and amount shall be credited to the bank account of the applicant. No separate application is required as the shipping bill itself will be treated as the refund application. |
| Option – 2 |
Export without payment of IGST |
Refund shall be processed based on refund application filed via FORM GST RFD – 1A to the jurisdictional officer.
|
Process of refund to exporter under GST
Step1: Filling Form GST RFD-01/1A: First step for refund is to file refund application in GST FORM - 01 or GST FORM – 1A on common portal.
Step 2: Submission of application to Jurisdictional officer: The common portal shall generate Acknowledgement receipt number which would be submitted to jurisdictional proper officer along with GST RFD FORM – 01/1A along with supporting documents.
Step 3: Initial scrutiny of the documents by the proper officer: After scrutiny of application, Deficiency Memo in GST RFD-03 or Acknowledgement in GST RFD-02 will be issued within 15 days from the date of application submitted under Step – 2.
Step 4: Grant of Provisional Refund: Provisional refund shall be granted within 7 days of acknowledgement and shall be credited directly to the bank account of applicant of acknowledgement in GST RFD-04. Payment advice shall be issued in FORM GST RFD – 05.
Step 5: Detailed scrutiny of refund application: Following will be scrutinised in detail by officer:
- Refund statement detail with GSTR – 1 and GSTR-6A.
- Shipping bill details shall be checked at ICEGATE Site.
- Detail of IGST paid on Inputs with GSTR-3 and GSTR-3B.
- Refund applied should be less than IGST paid on Inputs.
- Any adjustment in refund amount shall be made via GST RFD-07.
Step 6: Refund amount is less then refund claim: In such case
- Notice has to be issued to the applicant in FORM GST RFD-08.
- The application has to be reply within 15 days of receipt of notice.
Step 7: Final order of refund:
the
Final order to be made in form GST RFD-06.
Documents required for refund application:
Following documents shall be accompanied by Time Lines for Export Refunds Application:
| Refund Type |
Document Required |
Statement |
| Where refund is on account of exports of goods |
Statement containing:
a. The number and date of shipping bills or bills of export.
b. The number and date of the relevant export invoices.
|
Statement – 3A |
| Where refund is on account of exports of Services |
Statement containing:
a. The number and date of invoices.
b. The relevant bank realisation certificates or FIRC.
|
Statement – 3 |
| Declaration to be enclosed |
a. Self-declaration that the incidence of tax has not been passed on, under Rule 89(2)(i).
b. Certificate from Chartered Accountant or Cost Accountant that the incidence of tax has not been passed on, under Rule 89(2)(m).
c. Self-declaration that the exported goods are not subject to export duty.
d. Self-declaration that refund of ITC claimed does not include ITC availed on goods/services used for making ‘nil’ rated or fully exempt supplies.
|
Relevant dates under Time Lines for Export Refunds:
The Time Lines for Export Refunds application shall be made within 2 years from the relevant date. Relevant dates have been explained as below.
| Where Goods are Exported out of India |
| By Sea or Air |
The date on which the ship or the aircraft in which such goods are loaded, leaves India |
| By Land |
The date on which such goods pass the frontier |
| By Post |
The date of despatch of goods by Post Office concerned to a place outside India |
| Where Services are Exported out of India |
The date of:
a. Receipt of payment in convertible foreign exchange, where the supply of service had been completed prior to the receipt of such payment; or
b. Issue of invoice, where payment for the service had been received in advance prior to the date of issue of the invoice.
|
Various Time Lines for Export Refunds
| Form Name |
Purpose |
Time Line |
| GST RFD – 01 |
Application for Refund |
Within 2 yrs from relevant dates |
| GST RFD – 01A |
Application for Refund (Manual) |
Within 2 yrs from relevant dates |
| GST RFD – 02 |
Acknowledgment |
Within 15 days from the date of application |
| GST RFD – 03 |
Deficiency Memo |
Within 15 days from the date of application |
| GST RFD – 04 |
Provisional Refund Order |
Within 7 days from the date of GST RFD-02 |
| GST RFD – 05 |
Payment Advice |
Within 7 days from the date of GST RFD-02 |
| GST RFD – 06 |
Refund Sanction/Rejection order |
Within 60 days from the date of GST RFD-02 |
| GST RFD – 07 |
Order for complete adjustment of sanctioned refund – Part A |
Within 60 days from the date of GST RFD-02 |
| GST RFD – 07 |
Order for complete adjustment of sanctioned refund – Part B |
Within 60 days from the date of GST RFD-02 |
| GST RFD – 08 |
Notice for rejection of application for refund |
Within 60 days from the date of GST RFD-02 |
| GST RFD – 09 |
Reply to show cause notice |
Within 15 days from the date of GST RFD-08 |
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