GST Cash Refund

Any individual having GST registration can claim a refund under the GST Act for tax, penalty, interest, fees or any other amount paid by the taxpayer. GST RFD-01A form has to be filled by the taxpayer to claim the refund of excess amount in electronic cash ledger.

Electronic Cash Ledger

Electronic cash ledger is a cash ledger maintained in the electronic form on the GST portal. Electronic cash ledger contains details of all the deposits made by a taxpayer under GST. Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) is also reflected in the electronic cash ledger of the taxpayer.

When can the refund be claimed?

There are many cases where refund can be claimed. Here are some of them

Excess payment of tax is made due to mistake or omission.

 Dealer Exports (including deemed export) goods/services under claim of rebate or Refund

 ITC accumulation due to output being tax exempt or nil-rated

 Refund of tax paid on purchases made by Embassies or UN bodies

 Tax Refund for International Tourists

 Finalization of provisional assessment 

Order for Refund

If the refund is on account of the export of goods and/or services, the authorized officer will refund 90% of the total amount claimed as a refund on a provisional basis in Form GST RFD-4. Thereafter, after due verification of the documents furnished, the officer will issue an order for the final settlement of the refund claim.

Provisional refund will be granted subject to the following conditions:

 The person claiming refund has not been prosecuted for tax evasion of an amount exceeding Rs. 250 Lakhs during the preceding 5 years.

 The person’s GST compliance rating is not less than 5 on a scale of 10.

 No pending appeal, review or revision exists on the amount of refund.

If the officer is satisfied that the whole or part of the amount claimed as a refund in the application is refundable, he will issue an order for the refund in Form GST RFD-5. This will be done within 60 days from the date of receipt of the application. If the refund is not sanctioned within 60 days, interest on the refund amount will be paid for the period after 60 days, till the date of the actual refund of tax