What is a GST refund?

When taxpayers pay excess GST (Goods and Service Tax) in certain cases and the tax paid is more than the GST liability, the taxpayers can claim their GST refund via a streamlined GST process. The government has created a standardised GST Refund process which is online. There are time-limits set for the process, let us check it in detail.

GST Refund Procedure:

For the taxpayers seeking the GST refund, a set application is to be followed. Let us have a look at the GST refund procedure below:

They need to file form RFD-01 which needs to be certified by an authorized Chartered Accountant within 2 years of the relevant date. The relevant date differs from case to case. It is important for the taxpayers to note the relevant dates as failure to file the application within the given time frame will lead to blockage of credit.

The cases are defined below:

  • For goods exported through air or sea: When the aircraft/ship leaves the Indian borders.
  • For goods transported through land: When the goods cross the land frontier of the country.
  • For goods transported via post: The dispatch date of goods from the post office.
  • For services (when the services are completed before the payment): Relevant date is the payment receipt date.
  • For services (when payment is made in advance): Relevant date is the invoice date.