Do You Know About GST Refunds?

 In India, the government is authorized to collect taxes from persons through process authorized by law. If the person has paid the taxes that were above the amount that was due, then the government is under an obligation to reimburse it. This process of reimbursement is known as refund. In this article, we will talk about GST Refunds.

Under the GST laws, not every person is entitled to claim GST refunds. In order to claim these refunds, they have to meet out certain conditions. The refund is initiated only if the amount of tax, interest, cess, penalty, or any other amount paid to the government was either more than the prescribed amount or extra tax was paid which was not leviable.

Who can claim GST Refund?
Any person can claim the GST refund i e for claiming the GST refund irrespective of the fact whether that person is a registered person or unregistered person as stated in section 54(1).

What are the cases where GST Refund can be claimed?

1. Export of Goods or services
2. Supplies to SEZs units and developers
3. Deemed Export supplies
4. Refund of taxes on purchase made by UN or embassies etc
5. Refund arising on account of judgment, decree, order or direction of the Appellate Authority, Appellate Tribunal or any court
6. Refund of accumulated Input Tax Credit on account of inverted duty structure
7. Finalisation of provisional assessment
8. Refund of pre-deposit
9. Excess payment due to mistake
10. Refunds to International tourists of GST paid on goods in India and carried abroad at the time of their departure from India
11. Refund on account of issuance of refund vouchers for taxes paid on advances against which goods or services have not been supplied
12. Refund of CGST & SGST paid by treating the supply as intra-State supply which is subsequently held as inter-State supply and vice versa.

Note
As per circular no. 125/44/2019-GST dated 18th November, 2019, GST Refund process is fully digitalized & the necessary capabilities for making the refund procedure is fully electronic, in which all steps of submission and processing shall be undertaken electronically, have been deployed on the GST Portal.

If you have any suggestions/feedback, then please leave the comment below. For more updates on Taxation, Financial and Legal matters, join our group on WhatsApp or follow us on Facebook, Instagram and Linkedin!