Second, the GST refund claim must be made within 2 years from the ‘relevant date’ of GST refund application. If you want to claim refunds, then you must make sure that you do not delay your application for the same. Goods dispatched by post, the date of dispatch of goods through post shall apply as the relevant date. It is recommended that a period of one year from the relevant date may be allowed for filing of refund application. In any other case refund can be applied with in 2 year from the relevant date. Explanation2 to section 54 of CGST Act, Relevant Date means in the case of goods exported out of India where a refund of tax paid is available in respect of the goods themselves or, the inputs or input services used in such goods :- Refund application can be filed under GST within a period of 2 years from the relevant date. No part of these pages, either text or image may be used for any purpose. Blocked Credit, Conditions to avail ITC, How to reverse ITC, Interest Rate on reversal of ITC, ITC of compensation cess, ITC Provisions under GST, Section 17(5) of CGST, Situation where ITC cannot claim. Thus practically every situation is covered. India: “India” means the territory of India as referred to in article 1 of the Constitution, its territorial waters, seabed and sub-soil underlying such waters, continental shelf, exclusive economic zone or any other maritime zone as referred to in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976, and the air space above its territory and territorial waters. Input Tax Credit plays vital role in determination of net tax liability of a taxpayer. The relevant date for the same will be the date of decree or order communicated by the Appellate authority, tribunal, or any court. When it comes to refunds in GST, the concept of relevant date plays a vital role, as the application for refund has to be made within two years of the relevant date. Here are the relevant dates for common instances of GST refunds – Fo... GSTR3B Due Date for April 2018 On submitting the GST refund form, you receive an auto-generated acknowledgement on GST RFD – 02 form. Where refund arises due to an order passed in favour of the appellant, then relevant date shall be the date of such order. Example of Interest calculation under GST, How to Calculate Interest on late payment of GST, Interest calculation in GST, Interest on ITC in GST, Interest on late payment of GST, Interest rate on wrong input credit, Rate of Interest under GST. within relevant date. Time Limit for claiming GST refund. You must either check with your chartered accountant or an online tax site for the same. Click here for Temporary GST Registration, GST for Non-Resident Taxable Persons. The CRA also gave a one-time GST refund of $400 on April 9 as part of the COVID-19 Emergency Response Plan. Our aim is to help the entrepreneur on the legal and regulatory requirements, and be a partner throughout the business lifecycle, offering support at every stage to ensure the business remains compliant and continually growing. In this article, we look at relevant date for GST refunds in detail. Otherwise, explain the situation mentioned below. In the absence of specific provisions, general provisions are applicable. Save my name, email, and website in this browser for the next time I comment. Refund under GST can be claimed for tax paid, cash lying in cash ledger etc. Finalization of Prov... Find trademark class for over 8000 goods and services, Manual Filing and Processing of GST Refund Claims. The date of issue of invoice, if the payment had been made in advance. The relevant date for unutilised ITC should be the date of end of FY period, which is applicable as per existing CGST Act 2017. However, in explanation to that section, there is no specific entry in for the meaning of ‘Relevant Date’ in case of Supplies to SEZ. 1.0 Meaning of relevant date . RFD–01 is an application for processing refund under GST. relevant export invoices, in a case where the refund is on account of export of goods • A statement containing the number and date of invoices along with such other evidence as may be notified in … Relevant Date: GST refund found in provisional assessment: Date when tax is adjusted: Accumulated ITC credit due to nil outward liability: By the end of the financial year in which you claim ITC. Refund for non-suppliers: Relevant date is the date at which the goods are received. STEP 2: After the application is filled by the taxpayer, the details and the acknowledgement will be auto-generated in Form RFD-02. We were started in 2014 with the mission of making it easier for Entrepreneurs to start their business. Post Views: 391 Interest Under GST Government implemented GST by consolidating various State & Central taxes, these taxes has their different law as compare to each other. Click here to read on Time of Supply of Goods. The service must be completed before the receipt of payment. Under GST any person claiming the refund of the tax, or the interest paid should make an application within a period of two years from the relevant date using the Form GST RFD-01 electronically. It is important to understand what would be the “Relevant date”, as this date is required for calculating the time-limit for claiming refund. Section 54 of CGST Act has prescribed the definition of relevant date and such relevant date plays a crucial role in claiming GST refund. The GST law requires that every claim for refund is to be filed within 2 years from the relevant date. In this article, we look at relevant date for GST refunds in detail. As per section 54(1), an application for refund can be moved within two years from the relevant date. When GST Refund Application Can Be Filed? Here is the list of relevant date for refund under different scenario: However there is time limit to claim refund from CASH E-ledger. © 2019 GST Fever. GST refund applies to any taxpayer upon making extra GST payment in the form of tax, interest, penalty, fees or any others. has to be paid if the amount is not refunded within 60 days from date of receipt of application. Timing to claim refund. First of all, you should know that under the GST, all types of GST refund claims should be filed within 2 years from the relevant date of refund. A person claiming refund is required to file an application before the expiry of two years from the “relevant date” as given in the Explanation to section 54 of the CGST/SGST Act. With regards to the export of goods out of the country, the refund is applicable for goods, inputs, or input services used in such goods. Table of Contents. Q 8. We have since helped start and operate tens of thousands of businesses by offering a range of business services. There are various cases for which there are different relevant date has been prescribed. Ans. The refund application has to be made in Form RFD 01 within 2 years from relevant date. Refund is very important term under the GST for the person who is eligible to claim the refund and for the GST Authority who issues the refund order. The principle of unjust enrichment would be applicable in all cases of refund except in the following cases: - i. However to claim refund under GST taxpayers has to file refund application in prescribed period of time i.e. The concept of ‘relevant date’ differs across the different instances of GST refunds. A registered person may claim the balance available in the electronic cash ledger by filing the return as per the dates mentioned under GST. Refund: Refund includes refund of tax paid on zero-rated supplies of goods or services or both or on inputs or input services used in making such zero-rated supplies, or refund of tax on the supply of goods regarded as deemed exports, or refund of un-utilised input tax credit as provided under sub-section. GST refund as a result of judgment- The date of announcement of such a judgment or order. The following dates are recommended as relevant dates for different type of refund cases: Practically, in current scenario, some Refund Processing Officers under GST are not granting refund for the period July, 2017 to Jan, 2018 by issuing Show Cause Notice in Form GST RFD-08 on the ground that it is time barred on account of lapse of prescribed two years from the relevant due date of furnishing return under section 39 of CGST Act, 2017 i.e., 25-08-2019 for July, 2017 and 20-02-2020 for Jan, 2018. Claiming refund will depend upon whether such application was filed within relevant date or not. So, abide by the GST refund dates as mentioned below, to claim your refunds on time. IndiaFilings is India's largest online compliance services platform dedicated to helping people start and grow their business, at an affordable cost. Time period to Claim the refund: In case of refund as mentioned in point no. Relevant date, in this case, will be the date of filing of returns of such transactions. Agriculture Entrepreneurship Promotion Scheme, Upon exporting the by ships or aircraft, the date on which the carrier leaves India, the mentioned date shall apply as a relevant date, Goods exported by road or rail, the date on which the carrier crosses the frontiers of the nation shall apply as a relevant date. Article contains relevant sections, rules, circulars and gist of Circular No. Considering the concern of taxpayers, GST Act has prescribed conditions where refund can be claimed. Export of Goods out of India A registered taxpayer can claim refund within two years from relevant date. The following points describe the relevant date for export of goods: Deemed exports refer to the supply of goods which doesn’t leave India, and the goods so received will be paid either on Indian rupees or in foreign currency. As tax has to be paid on stock transfers also which will definitely lead to accumulation of input credit resulting in working capital blockage. If you are claiming a refund for excess payment of GST, your date of payment becomes the relevant date. Design by, How to Reverse ITC on Sale of Capital Goods, Process for Reversal of ITC on Capital Goods, Example of Interest calculation under GST, How to Calculate Interest on late payment of GST, Procedure for NGO Registration in India – GST Fever. Therefore, "date of payment of CGST/SGST" is the relevant date for claiming IGST. Purchase month april 18 Export occur in sep 18 FIRC comes in 1 dec 18 Now date of filing of refund is 30 nov 2020 Under GST, “Input Tax... How to Reverse ITC on Sale of Capital Goods, ITC on Capital Goods, ITC on Immovable Property, ITC on Motor Vehicle, Process for Reversal of ITC on Capital Goods, Whether ITC available on Capital Goods. Relevant date for filing of each kind of refund needs to be defined separately. Although Section 54(1) talks about refund of tax paid into Govt Treasury but Section 54(14)(2)(h) does not specifically contemplates the date of payment of excess or wrong tax for calculating limitation period. Where tax was paid following a provisional assessment and refund now arises, then relevant date shall be date at which such tax was adjusted. Relevant date for filing refund claim : Refund is required to be filed with specified period from ‘relevant date’. And the period for such interest would be from the date immediately after 60 days to the date of refund. TIME PERIOD FOR FILING OF REFUND AND RELEVANT DATE: 4.0. When it comes to refunds in GST, the concept of relevant date plays a vital role, as the application for refund has to be made within two years of the relevant date. If you are claiming a refund for export or deemed export of goods or services, the date of despatch/loading/passing the frontier becomes the relevant date. In other words, as per view taken by them, the refund claims of unutilized credit under GST cannot be filed before 31.3.2018. The form should also be certified by a Chartered Accountant. The date of receipt of payment in convertible foreign exchange. Post Views: 109 All about Input Tax Credit on Capital Goods Input Tax Credit is the key pillar of GST. On the date of implementation of GST there was a fear in the mind of every business man which is “fear of working capital blockage” as tax will be leviable on supply rather sales and supply includes stock transfer also. Copyright © 2021 VERVE Financial Services Private Limited. There are various cases for which there are different relevant date has been prescribed. For export of services for GST refund- The relevant date would be the invoice issue date. For every other case, the relevant date will be the date of payment of the tax. The ‘relevant date’ in each scenario of refund is given below: With regards to services exported out of the country, where refund applies on executing these services, and the inputs or input services used in such services, the relevant date shall apply as: Pre-deposits done before appealing to the proper authorities are refundable, subject to conditions. GST Fever is an emerging online player in field of Taxation Consultancy, Blogging, Article Publishing & Real time expert Advisory. The relevant dates are different for different types of GST refund scenarios. Such refund may be claimed in the return filed in regular manner by the taxable person if refund … Post Views: 245  Input Tax Credit under GST Input Tax Credit is defined under section 2(63) of CGST Act 2017 as “the credit of Input Tax”. CREDIT NOTES Further, Section 34 of the CGST Act, 2017 provides for issuance of credit notes for post supply discounts or if goods are returned back within a … In simple terms, one can refer to the time of relevance in each refund case as per the given points*: Section 54 of CGST Act has prescribed the definition of relevant date and such relevant date plays a crucial role in claiming GST refund. In case of a refund of unutilized input tax credit, the relevant date is said to be the end of the financial year, during which the need for refund occurs. However, taxpayers need to file their claim for GST refund within two years from the relevant date. This is because the section 54 of CGST states that any person claiming refund may make an application before the expiry of two years from the relevant date. 135/05/2020-GST Dated 31/03/2020 issued in regard of filing and processing of refund electronically. In a few other cases, the date of payment of tax would be the relevant date. List of GST refund forms available for the Registered taxpayer on the GST Common Portal. All rights reserved.Unless otherwise indicated, all materials on these pages are copyrighted by VERVE Financial Services Private Limited. GST refund of unutilized ITC- the end of the fiscal year during which claim for refund occurs.In other cases- the date of the tax payed. The GSTR3B due date for April, 2018 has been extended upto 22 May, 2018. Ans. When GST Refund Application Can Be Filed? All rights reserved. A person can make an application for refund of GST before expiry of two years from the relevant date in such form and manner as may be prescribed. The same will be forwarded via an email and an SMS for future references to the applicant. Relevancy of Relevant Date: if any refund application is not filed within the relevant date then such application shall be treated time barred and GST department can deny to entertain such application. Some experts are of the view that for filing the refund claim, the relevant date is to be seen as the starting date for filing the refund claim. 5 of above, refund can be apply with in 6 months from the last day of quarter in which such supply was received. A person claiming refund of tax or interest or any other amount paid must file an application for refund in Form GST RFD-1 before the expiry of 2 years from the ‘relevant date’. GST RFD–01  Interest on amount refundable as a result of Order passed in an appeal or further proceedings: Interest @ 9% p.a. The meaning of relevant date is very important in regard to refund provisions under GST. Claiming refund will depend upon whether such application was filed within relevant date or not. Refund should be sanctioned within a period of 60 days from the date of receipt of the claim. Whether principle of unjust enrichment will be applicable in refund? If a person is liable to pay taxes on reverse charge, the relevant date would be the date of receipt of goods or services. All rights reserved. As per the GST return India rules, A business entity or person claiming the tax/ interest refund needs to file a proper application in the “Form GST RFD-1” to avail the rebate just before two years expiry from the date of relevant. An overview of the various situations that could lead to a GST refund for a taxpayer. Any individual registered under GST can claim a refund of taxes, interests paid... How to Get GST Refund? 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