Compliance to get the refund of ITC on account of exports without payment of Tax

Compliance to get the refund of ITC on account of exports without payment of Tax

The process of filing the refund of ITC is to be done very carefully and sincerely. There are several things and documents are to be attached or mentioned while to comply for the refund of the ITC. Following is the compliance to get the refund of ITC on account of exports without payment of tax:

1. You have to file refund application in Form RFD – 01A at GST Portal and you can file for the refund of multiple tax period in one refund application.

2. You have to provide the turnover of Zero-Related supplies and Adjusted Total Turnover in a State or UT for the period refund is sought for.

3. The Net ITC auto-populated can be edited downwards. The Net ITC in table “Computation of Refund to be claimed” is auto-populated by the system and can be edited downwards considering net ITC availed for the heads of CGST/SGST/IGST together and Cess in the return for the respective tax period for which refund is claimed excluding any ITC related to Capital Goods, transition ITC that may have been posted in the ledger on account of transition ITC claims in the said period as well as refund claimed under Rule 89(4A) (deemed export) and/ or (4B) (merchant exporter or export).

4. The system will auto calculate the eligible refund amount and post in the last column of table “Maximum refund amount to be claimed.

5. The system also indicates balances in each head of the taxpayer’s Electronic Credit ledger on the day of filing of the return of the tax period and the balance when he is filing the refund application

6. The taxpayer has to enter the amount of refund claimed in such a manner that the amount in each head is equal to or lower than the lowest balance in each head of Electronic credit ledger indicated above and the total refund should not exceed the “Maximum Refund that can be claimed”.

7. Applicant has to be careful while furnishing values in Form RFD -01A, as no rectification in the application is allowed after its filling.

8. Applicant has to ensure that he has filed the return GSTR-1 and GSTR- 3B for the all the tax periods pertaining to which Refund is claimed.

9. Balance in ITC ledger should be sufficient in each head (IGST/CGST/SGST/UTGST/CESS).

10. He should have exported goods/service on account of which he is claiming ITC refund. In case of Export of Goods, the taxpayer shall provide Shipping Bill and EGM details.

11. In case of export of services, he should have obtained FIRC/BRC from the concerned bank for receipt of foreign exchange.

12. Once Application Reference Number (ARN) is generated, refund application filed shall be assigned to the Jurisdictional Refund Processing Officer for processing. Refund applicant can track the status of refund application filed using “Track Application status” functionality on the portal.

Note: Form RFD 01A for a period can be filed only after filing of valid Form GSTR-1 and Form GSTR-3B for that particular Return Period.

13. The Invoice details are given under Form GSTR – 1/ Table 6A of Form GSTR – 1 and given under refund statement should be same

Related Topic:
Merchant Export vs Deemed Exports in GST

CA Amresh Vashisht
Meerut
For updates 9837515432