export refund: 5 checks to ensure timely

Introduction:

This article is for issues related to export refund. We want to promote exports, yes. The government provides many benefits for the exporters. But lack of knowledge restricts many exporters. Many taxpayers want to export but they can’t because compliance is complex. Refund in case of export of services needs some extra consideration. Consideration for intermediary becomes important. Many advance rulings are there about intermediary.

Filing of correct GST return is a must for timely Export refund 

It is very important to file correct GST return. It makes the process of refund very easy. An incorrect filing makes it equally complex. The simple reason is the GST system is a mix of online and manual. Anything kips the online take a long journey in the department. Always try to get it sorted online. It is very important to file correct data. The system understands what is mapped into it. 

CGST rules provide that filing of GSTR 3b and GSTR 1 itself is equivalent to the refund application. You are not required to file any other form. But if they don’t match with each other and shipping bill, your refund may get stuck.  take time to reconcile all the data before filing these returns. Thus reconciliation is very important. make a templet sheet for it. 

Where LUT is taken, take an export refund of ITC

GST provisions also provide for the refund of ITC when the LUT is availed.E.g When a taxpayer exports the services of Rs. 100 and due to LUT doesn’t pay any tax. They can still claim the refund of tax paid on the purchase of supplies. In our case, if the purchase is Rs.50. The tax paid on it can be claimed as refund. but rules bar the refund of tax paid on capital goods. Although there is no such restriction in Act.

You can get refund even if the product is exempted

Zero-rating is a specific feature of GST. When the goods are exported, they are zero-rated. Even if they are also exempt under the GST Act. This specific features makes the exported eligible for a refund of ITC of inward supplies.

You are eligible for 100% refund, the 90% is provisional refund only

GST Act provides for provisional refund of 90% within 7days. This provision is translated by department in a different manner. They release only 90% refund even after detailed checking of documents. This is against the provisions of GST. In this case, you should go for a 100% refund. 

Interest when refund is not released in a prescribed period of 60 days:

When the refund is not released within the prescribed time. GST provisions also provide for the interest at the rate of 6 or 9%. These two rates cover two different scenarios. Thus you can also claim interest on the pending refund claim in case the department doesn’t release it. Export refund is allowed with interest on amount pending. A time of 60 days is given. After that, there is the eligibility of interest. In a recent court case, Gujrat High court held that.