Compared to the old tax regime, processes under the GST regime are easy. Though it is GST Return filing process or the Refund process.
The Government has put utmost focus to make the refund process easier as compared to the previous tax regime.
Delays in refund can cause the problem for the exporters and the manufacturers to maintain their working capital and the cash flow.
When can Refund under GST be Claimed?
The situations under which you can claim the refund are listed below:
- Export of Goods or Services ( Including Deemed Export).
- Refund of Unutilized Input Tax Credit.
- Refund from Manufacturing / Generation/ Production – tax free supplies.
- Excess payment due to mistake and ignorance.
- Finalization of Provisional Assessment.
- Refund for Tax payment on transactions by UN bodies, CSD Canteens, Para-military forces canteens, etc.
- Refund of pre-deposit in the case of Appeal.
Refund Process under GST
Below procedure is to be followed to claim the refund of your GST Tax or ITC:
- Application form to claim the refund will be filed through the GSTN portal.
- On successful submission of application, an acknowledgment number will be provided would through email and SMS.
- The adjustment will be made to the return amount and the cash ledger to reduce the carry-forward input tax credit automatically.
- Supportive documents must be submitted within 30 days from the date of filing the refund.
- A strict compliance will be followed, Government will follow the concept of unjust enrichment for each refund application.
- If the refund application doesn’t qualify, then the refund will be transferred to Consumer Welfare Fund.
- If refund claims will exceed the predetermined limit of the refund then the application will go through a pre-audit process for sanctioning the refund.
- Payments of the refund will be made electronically to your account via ECS, RTGS or NEFT.
All the refund applications will be uploaded electronically, the process of verification and scrutinization of the refund will be faster.
Thus, resulting in faster payments to the applicants. The applicant will also be eligible for interest if the refund applications are not processed within a stipulated time.
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