Notes.docx

1.What are RFD-01 and RFD-01A & Steps to apply for GST refund? Any taxpayer can file for refund in Form RFD-01/ RFD-01A. Refund will be issued only when refund exceeds Rs. 1,000 RFD-01 is an application for online processing of refund under GST. It is to to be e-filed on the GST portal to claim the refund of: taxes, cess and interest paid in case of zero-rated supplies balance of excess cash paid into the electronic cash ledger unutilised Input tax credit accumulated in your Electronic Credit Ledger due to Inverted duty structure. Whereas, RFD-01A is a replica of RFD-01 introduced as a temporary solution till such time the online facility is enabled for claims of refund. RFD-01A is the application form for refund form under GST for manual processing, notified for certain cases of Refund. Steps: 

Login to GST portal.

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Select the Refund tab-> Application for Refund Option.

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Select the type of refund and Fill the necessary details and submit. ARN number gets generated.

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Later take a print out along with the ARN number mentioned thereon.

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Submit this along with the applicable annexures to the respective Jurisdictional GST officer.

The Officer can be Central tax authority or State/UT tax Authority as may be notified for processing of refund shall be intimated through the Acknowledgement in RFD-02

2.Who should file RFD-01/01A? In case of deemed exports, either the recipient or the supplier can make an application for refund of taxes paid. For a particular invoice of deemed exports, both the supplier and the recipient cannot apply to claim refund.

Suppose the supplier applies for refund, then a declaration has to be taken from the recipient that he is not claiming the refund against that supply.

3.Types of refunds where RFD-01/01A is applicable RFD-01 can be applied for the following types of refund as depicted in the infographic below:

The following types of refunds under GST are currently being manually processed: 1. IGST paid on zero-rated supplies 2. ITC on exports under letter of undertaking or bond 3. Claims in case of deemed exports 4. Refund claims on account of inverted duty structure 5. Excess balance in Electronic cash ledger Hence, file RFD-01A in the place of RFD-01 for the above cases till such time until further notified. Alternatively, The claim of excess balance in Electronic Cash ledger can also be made in the monthly returns that is filed by taxpayer. For instance, then GSTR-3 , GSTR-4 or GSTR-7 as the case may be. Till such time GSTR-3 is brought into effect, file RFD-01A here.

4.Cases where RFD-01/01A is not applicable RFD-01/01A has to be filed for all cases of refund claims except the below mentioned: 1. Export of goods involving payment of export duty 2. Exports of goods/ services where IGST is paid and shipping bill is by default considered the application for refund. 3. Cases where the supplier avails the drawback scheme of the CGST/SGST/IGST paid on the supplies 4. UN or embassies and certain persons notified 5. Casual taxable persons / non-resident taxable persons

5.Prerequisites for applying for refund In case of applying refund of tax paid or the accumulated ITC without payment of output tax in case of zero-rated supplies and deemed exports, the applicant should have filed the GST returns in GSTR-1 of the month for which the claim is made and GSTR-3B of the previous month.

Care is to be taken to fill up GSTR-1 for the applicable tables at 6A for exports, 6B for Supplies made to SEZ units/ SEZ developer and 6C for Deemed exports. Also, GSTR-3B has to be filled up at Table 3.1(b) and filed in line with the GSTR-1. Any mismatch found between the returns shall lead to delay in processing of refund. The applicant must have the list of invoices in hand against which the refund is claimed. A Certificate by a Chartered Accountant/ Cost accountant needs to be submitted along in certain cases.

6.Time limit and Frequency of filing RFD01/RFD-01A The refund claim has to be made within two years from the relevant date in RFD-01/ RFD-01A. The RFD-01A has to be filed on monthly basis for the following cases: 1. Refund claims in case of Zero-rated supplies 2. Refund claims in case of Inverted Duty Structure 3. Refund claims in case of Deemed Exports 4. Refund of excess balance in Electronic Cash ledger RFD-01A can be filed Quarterly instead of Monthly only in case where the taxpayer has turnover below Rs. 1.5 crores and has opted to file Quarterly returns. In case of supply of goods to SEZ units or SEZ developer, a supplier has to file this form once the receipt of goods is confirmed by an authentication from the specified officer of that zone. In case of supply of services to SEZ units or SEZ developer, a supplier has to file this form once the evidence of receipt of service is confirmed by authentication from the specified officer of that zone.

7.Format of Refund forms RFD-01 and RFD01A The format of RFD-01 can be broken down into following parts: 1. Basic Form (Sl. No. 1-10 of the form) 2. Declarations and Verification 3. Annexure-1 4. Annexure-2

Each part is explained as follows: 1. Basic Form : (1) The GSTIN/ Temporary ID allotted (2) Legal name (3) Trade name if any (4) Address of principal place of business (5) Tax period for which the claim of refund is made if applicable, (6) Mention the amount of IGST, CGST and SGST, Interest or cess if any (7) Select the Grounds for the claim of refund as per the list given. (8) Details of Bank account into which you want the refund to be credited wherever applicable- This field is auto-populated from Registration Data. want to alter the Bank account, then make necessary changes in

So, if you

Registration Data and then apply for the refund. (9) Select ‘Yes’ if the Documentary evidence required to be submitted in Annexure 1 for the reason selected at (7). Else select ‘No’ The Points at 1, 2, 3, 4 are auto-populated on the GST portal. (10) Verification: the Authorised person has to sign this in all cases confirming the correctness of information and declarations given. Below is the view of RFD-01:

The format for RFD-01A remains same except that the grounds of refund covered are limited here and the Bank details and self-declaration at points (8) and (9) are not present in the form. The following Grounds of refund that are not covered while filing through RFD-01A: a) On account of an Assessment order b) Tax paid on supply not provided and for which the invoice is not issued c) Tax paid on Intra State supply which is subsequently held to be Inter-State supply and vice-versa d) Refund of Excess tax paid 2. Declarations and Verification: Some Declarations have to be made for certain types of refund claims made by taxpayer. The declarations are required to assert the fact that the tax burden is upon the claimant of refund and no other person can claim. Click here to know more about what Declarations are required 3. Annexure-1 : Different Declarations in Statements as documentary evidences have to be made or submitted under different types of refund claims. There are total 11 statements prescribed for different types of refund application in RFD01. The Statements in 1, 1A, 3, 5A and 5B only are applicable in case of filing RFD-01A, depending on type of refund claim Note that the Documentary evidences shall not be required to be submitted if the amount of refund claimed is falling below Rs. 2 lakhs. Instead, a self-declaration that the ITC benefit is not claimed by the recipient of goods or services is sufficient. To know more about the statements that is applicable for a particular refund type: Visit our page on Declaration and Annexures to be submitted with the refund application 4. Annexure-2 :

A Certificate issued by Chartered Accountant/ Cost Accountant needs to be annexed along with the Refund application in RFD-01/RFD-01A. To know more about the Certificate that is required: Visit our page on Declaration and Annexures to be submitted with the refund application

8.Calculation of the Refund Amount Amount of Refund is usually the tax, interest or cess if any that is paid as per the Tax invoice in most of the cases. Where the invoice details are amended (including export), refund shall be allowed as per the calculation based on amended value. In case of refund of ITC accumulated, two formulae has been prescribed. Only proportionate amount of accumulated ITC can be claimed that commensurates the value of turnover related to zero-rated supplies/ inverted rated supply to the total turnover earned by the taxpayer for the period referred. (1) Where zero-rated supplies are made without Tax payment by executing a Letter of undertaking/Bond: Formula to calculate the Refund amount of ITC: Net ITC x [( Turnover of zero-rated supply of Goods + Turnover of zero-rated supply of Services)/ Adjusted Total Turnover] (for the relevant period) Where, 

Net ITC : Input tax credit availed on inputs and inputs services during relevant period

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Turnover of zero-rated supply of Goods : Value of supply of Goods during relevant period made without tax payment by executing bond/ letter of undertaking for the relevant period

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Turnover of zero-rated supply of Services : Value of supply of Services during relevant period made without tax payment by executing bond/ letter of undertaking

In case of services that are zero-rated supplies, turnover includes the advance received in prior period for which services are now provided and reduced by advance received for which services are yet to be provided for the relevant period 

Adjusted total turnover :Total Turnover in a State/Union territory excluding value exempt supplies for the relevant period

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Relevant period: period for which the claim of refund is made/ filed. It differs for each claim of refund.

(2) Where there is inverted duty structure i.e The rate of tax on Inward supplies exceed the Outward supplies: Formula to calculate the Maximum Refund amount of ITC: [Net ITC x (Turnover of inverted rated supply of Goods/ Adjusted Total Turnover)]Output Tax Payable on Inverted rated supply of Goods (for the relevant period) Where, 

Net ITC : Input tax credit availed on inputs used in the supply of inverted rated goods during relevant period

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Turnover of inverted rated supply of goods : Turnover for that Supply of Goods that fall under the Inverted rated category.

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Adjusted total turnover :Total Turnover in a State/Union territory excluding value exempt supplies for the relevant period

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Output tax payable on the inverted rated supply of goods : Tax liability for the relevant period payable on the inverted rated supply of goods.

9.What is RFD-01B? RFD-01B also known as ‘Refund order details’ is a summary of Refund order passed after the entire process of refund is completed.

10.Follow-up after filing the refund application Once the application is submitted in RFD-01/RFD-01A, then a debit entry to the extent of refund amount applied shall be made automatically in the Electronic Credit Ledger of the claimant. Note the Debit reference number for future use. Within 15 days of receipt, the GST officer will check the application whether for its completeness in all aspects and intimate the claimant in RFD-03 if anything was missed out to be declared or annexed, requesting for a fresh application. Exception : In case of refund claim of balance in Electronic cash ledger the scrutiny will not apply

On successfully filing the application for refund, an acknowledgement in RFD-02 shall be made available on GST portal indicating the Application reference number (ARN), time period of the refund claim and date of filing RFD-01/RFD-01A. If RFD-01A was filed, then the RFD-02 shall be sent out manually by Jurisdictional GST officer referred to in the RFD-02. The GST officer has 60 days from the date of receipt of RFD-02 on filing refund application complete in all respects, to pass the order of sanction of refund claim. Who will be my GST officer ? The GST officer assigned for refund is mentioned on your RFD-02. Note that the refund processing of all taxes ( IGST, CGST and SGST/UTGST) can be done by the Central /State tax authority. But the Payment of refund will be done by the respective Central Tax authority for IGST/SGST and State Tax authority for SGST/UTGST. For this purpose, the GST officer who issued refund order may communicate with the respective tax authorities of State/UT to initiate Payment, within seven working days of issuing order.

Clarification on Statements to be Annexed With the Application for Refund Updated on Jun 12, 2018 - 05:05:41 PM

In our previous article, we had discussed the format of form GST RFD-01 in detail. There are certain statements to be annexed along with the form GST RFD-01 based on the reason for claiming the refund. There are 7 different statements specified depending upon the reason for claiming the refund. A certificate is also required at the time of filing GST RFD-01, which requires the signature of a chartered accountant or a cost accountant. All the statements will be auto-populated on the common portal and the applicant has to select the corresponding invoices for which the refund is claimed.

Clarification on Statements to be Annexed With the Application for Refund Statement 1 It has to be annexed with form GST RFD-01 if the refund is claimed due to the tax rate being higher on the inputs used then the tax rate on the sales. Details of the tax paid on the output under different heads like CGST, SGST, UTGST and IGST would be mentioned in the details to be provided for outward supplies. There will be two separate

tables for the inward and outward supplies. Details regarding the tax paid on inputs and the total ITC available under above mentioned different heads would appear in the statement.

For Example: Glow Private Limited signed a contract for providing investment consultancy services to Viraj Consultants for a sum of Rs 5 lakh. Glow Private Limited had a tax liability for the above service provided of Rs 90,000 due to the 18% tax charged under GST based on the contract with Glow private limited. Glow Private Limited paid tax on inputs at the rate of 28% and the ITC available was Rs 1,00,000. Glow Private Limited can claim the refund of Rs 10,000 for the excess tax paid on inputs. Viraj Consultants can claim the refund for the excess tax paid on the inputs than the final tax liability on output, by filing form GST RFD-01 annexed with statement 1 and certificate signed by a chartered accountant or cost accountant. Statement 2 It has to be annexed in the case of an application for refund filed for the tax paid on exports. Shipping bill details like port code and date and export general manifest (EGM) details are mandatory to be mentioned in the table under statement 2. Reference number and date mentioned in the bank reconciliation certificate (BRC) or foreign inward remittance certificate (FICR) has to be shared in the table under the statement 2. Statement 3 A similar statement with similar details has to be annexed along with form GST RFD-01 in the case where the exports were made without making the tax payment. Statement 4 A statement has to be annexed by the applicant in the case of supply of good or services to a SEZ unit/SEZ developer. Following are the details to be provided in the table: 1. The point of supply if it is different from the place of the recipient 2. Whether the reverse charge is applicable on the supply or not 3. The date on when the supply was received by SEZ unit/SEZ developer (mandatory in case of goods) 4. Whether supply is a deemed export or not 5. Reference number and date of filing the application for removal of excisable goods for export (mandatory in case of goods)

6. Details of the payment received for the supply made to SEZ unit/SEZ developer (mandatory in case of services) 7. GSTIN of the e-commerce operator (if applicable) Statement 5 It is to be attached in the case of goods supplied from an export-oriented unit or in the case of the goods being treated as deemed exports. Following details are required in statement 5: 1. GSTIN of the supplier 2. Taxable value, HSN/SAC, and quantity of the goods supplied 3. Only an unregistered dealer has to mention “STATE” from which goods are supplied 4. Details of CGST and SGST charged or IGST charged and cess charged has to be mentioned separately 5. In case of interstate supply of goods, point of supply has to be mentioned 6. Tax charged is eligible for ITC on inputs/capital goods/input services has to be mentioned in the statement 7. The amount of ITC available under different heads CGST, SGST, UTGST, IGST, and cess 8. Tax amount mentioned on the credit/debit note 9. Net ITC on the goods/service on which invoice is raised Statement 6 This statement is filed in the case of refund claimed due to an interstate supply of goods and services being later considered as intrastate or vice-versa. Following details have to be shared in the statement: 1. GSTIN or name in case of the supply of goods to a consumer 2. Date and taxable value mentioned in the invoice 3. Tax paid under the different heads like CGST, SGST, UTGST, IGST and cess as mentioned in the invoice and for the reversal as well

4. Place of supply has to be mentioned only is it is different from the place of the recipient of goods or services Statement 7 It is to be attached when there was excess tax paid in the last GSTR 3 filed. Following details are to be mentioned: 1. Tax period for which GSTR 3 is filed 2. Reference number and date of filing GSTR 3 3. The amount of tax payable as assessed under different heads CGST, SGST, UTGST, IGST, and cess You can find the exact format of statement to be annexed to the application for refund on the department’s website.

Clarification on Statements to be Annexed With the Application for Refund Updated on Jun 12, 2018 - 05:05:41 PM

In our previous article, we had discussed the format of form GST RFD-01 in detail. There are certain statements to be annexed along with the form GST RFD-01 based on the reason for claiming the refund. There are 7 different statements specified depending upon the reason for claiming the refund. A certificate is also required at the time of filing GST RFD-01, which requires the signature of a chartered accountant or a cost accountant. All the statements will be auto-populated on the common portal and the applicant has to select the corresponding invoices for which the refund is claimed.

Clarification on Statements to be Annexed With the Application for Refund Statement 1 It has to be annexed with form GST RFD-01 if the refund is claimed due to the tax rate being higher on the inputs used then the tax rate on the sales. Details of the tax paid on the output under different heads like CGST, SGST, UTGST and IGST would be mentioned in the details to be provided for outward supplies. There will be two separate tables for the inward and outward supplies. Details regarding the tax paid on inputs and

the total ITC available under above mentioned different heads would appear in the statement.

For Example: Glow Private Limited signed a contract for providing investment consultancy services to Viraj Consultants for a sum of Rs 5 lakh. Glow Private Limited had a tax liability for the above service provided of Rs 90,000 due to the 18% tax charged under GST based on the contract with Glow private limited. Glow Private Limited paid tax on inputs at the rate of 28% and the ITC available was Rs 1,00,000. Glow Private Limited can claim the refund of Rs 10,000 for the excess tax paid on inputs. Viraj Consultants can claim the refund for the excess tax paid on the inputs than the final tax liability on output, by filing form GST RFD-01 annexed with statement 1 and certificate signed by a chartered accountant or cost accountant. Statement 2 It has to be annexed in the case of an application for refund filed for the tax paid on exports. Shipping bill details like port code and date and export general manifest (EGM) details are mandatory to be mentioned in the table under statement 2. Reference number and date mentioned in the bank reconciliation certificate (BRC) or foreign inward remittance certificate (FICR) has to be shared in the table under the statement 2. Statement 3 A similar statement with similar details has to be annexed along with form GST RFD-01 in the case where the exports were made without making the tax payment. Statement 4 A statement has to be annexed by the applicant in the case of supply of good or services to a SEZ unit/SEZ developer. Following are the details to be provided in the table: 1. The point of supply if it is different from the place of the recipient 2. Whether the reverse charge is applicable on the supply or not 3. The date on when the supply was received by SEZ unit/SEZ developer (mandatory in case of goods) 4. Whether supply is a deemed export or not 5. Reference number and date of filing the application for removal of excisable goods for export (mandatory in case of goods) 6. Details of the payment received for the supply made to SEZ unit/SEZ developer (mandatory in case of services)

7. GSTIN of the e-commerce operator (if applicable) Statement 5 It is to be attached in the case of goods supplied from an export-oriented unit or in the case of the goods being treated as deemed exports. Following details are required in statement 5: 1. GSTIN of the supplier 2. Taxable value, HSN/SAC, and quantity of the goods supplied 3. Only an unregistered dealer has to mention “STATE” from which goods are supplied 4. Details of CGST and SGST charged or IGST charged and cess charged has to be mentioned separately 5. In case of interstate supply of goods, point of supply has to be mentioned 6. Tax charged is eligible for ITC on inputs/capital goods/input services has to be mentioned in the statement 7. The amount of ITC available under different heads CGST, SGST, UTGST, IGST, and cess 8. Tax amount mentioned on the credit/debit note 9. Net ITC on the goods/service on which invoice is raised Statement 6 This statement is filed in the case of refund claimed due to an interstate supply of goods and services being later considered as intrastate or vice-versa. Following details have to be shared in the statement: 1. GSTIN or name in case of the supply of goods to a consumer 2. Date and taxable value mentioned in the invoice 3. Tax paid under the different heads like CGST, SGST, UTGST, IGST and cess as mentioned in the invoice and for the reversal as well 4. Place of supply has to be mentioned only is it is different from the place of the recipient of goods or services

Statement 7 It is to be attached when there was excess tax paid in the last GSTR 3 filed. Following details are to be mentioned: 1. Tax period for which GSTR 3 is filed 2. Reference number and date of filing GSTR 3 3. The amount of tax payable as assessed under different heads CGST, SGST, UTGST, IGST, and cess You can find the exact format of statement to be annexed to the application for refund on the department’s website. Anyone can participate to share knowledge. We acknowledge the contributions of Experts/ Authors.

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Can we claim Input GST after claiming Drawback & ROSL, Goods and Services Tax - GST Book mark it

Issue Id: - 114123 Dated: 5-9-2018 By:- Ab rus Can we claim Input GST after claiming Drawback & ROSL

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Dear sir, We are exporting goods to USA without payment of IGST after GST implementation. Our forwarder claimed Drawback & ROSL in shipping bills, when shipment going. Drawback & ROSL amount automatically credited to our bank account. The point is we claimed GST refund claim and its also received in our bank.

Please clarify whether we can claim GST if we already claimed Drawback & ROSL. Is there any section? Please clarify. Thanks

Post Reply Posts / Replies Showing Replies 1 to 5 of 5 Records 1 Dated: 5-9-2018 By:- KASTURI SETHI

There may be mistake in the functioning of Common Portal System. You got drawback and ROSL on account of tax paid on inputs contained in goods exported without payment of GST. After getting drawback & ROSL, the question of getting refund of GST does not arise. No double benefit. It has to be paid back. See the definition of' 'refund' under Section 54 and 55 of CGST Act.

2 Dated: 5-9-2018 By:- Yash Jain

Dear Sir, Yes, you can very well claim GST Refund but subject to following conditions and as under, 1. Drawback Claim : The Drawback as being claimed should not contain the Componenet of Excise/Service tax. It should purely be for Customs portions (Drawback - When Cenvat Credit is not available - Its option B on shipping Bill). 2. ROSL.: On 04th September,2018, Refund rules have been revised were in ROSL should not be claimed

which are mentioned in the relevant notifications. If you fulfill both the aforesaid conditions, then GST is Refundable. (Refer Cirular No.:37/11/2018 – GST Dated 15th March,2018) and (349/21/2016-GST( 04thSeptember,2018.

3 Dated: 6-9-2018 By:- DR.MARIAPPAN GOVINDARAJAN

Sri Yash gives a clear picture on the query.

4 Dated: 6-9-2018 By:- KASTURI SETHI

Kudos to Sh.Yash Jain, Sir for such crystal clear and fool proof reply. Nothing is left untouched. Such precise reply can be termed as , "Gaagar mein sagar."

5 Dated: 23-1-2019 By:- Saradha Hariharan

Dear Mr. Yash Jain Can you please help me understand which para you are referred to in this regard in Circular No. 59/33/2018GST F. No. 349/21/2016-GST dated 4th Sept 2018? If you are referring to para 5 give provides clarity on rule 96(10), it may not be relevant since rule 96(10) as amended many times does not include notification on ROSL. Please help me understand. Thanks in Advance.

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