Refund of ITC paid on Exports of Goods and Services without payment of Integrated Tax

1. How can I get my refund of ITC on account of export without payment of Tax?

You may comply with the activities as specified below:

1. You have to file refund application RFD – 1A at GST Portal.

2. You have to mention turnover of Zero-Related supplies and Adjusted Total Turnover in a State or UT for the period refund is sought for and the net ITC (the ITC availed during the period refund is sought for).

3. System will auto calculate the eligible refund amount and post in the last column of table.

4. Applicant has to ensure that he has filed the return (GSTR- 3B) of the period for which Refund is sought.

5. Balance in ITC ledger should be sufficient in each head (IGST/CGST/SGST/UTGST/CESS).

6. He should have exported goods/service on account of which he is claiming ITC refund.

7. In case of export of services, he should have obtained FIRC/BRC from the concerned bank.

8. Once Application Reference Number (ARN) is generated, take a print of Application and submit to the Jurisdictional Authority manually along with other relied upon documents as required under RFD-01.

NOTE: FORM RFD 01A can be filed only after filing of valid GSTR-3B for the Return Period.

2. What are the conditions that I have to fulfil for getting refund of IGST paid on Export of Goods (with payment of tax)?

1. GSTR – 1 for the month of July or Table 6A of GSTR – 1 for subsequent months must be filed. Since filing of GSTR 1 for August, September, October, November and subsequent months are being enabled shortly, filing of Table 6A of GSTR1 would be discontinued w.e.f. GSTR1 filing.

2. Shipping bill no. & date should be mentioned in Table 6A of GSTR – 1 and IGST amount should be mentioned.

3. GSTR – 3B for the relevant tax period should have been filed

4. IGST amount to be paid should be shown under Table 3.1(b) of GSTR – 3B, which must be equal or greater than the IGST amount shown to be paid under Table 6A GSTR – 1.

5. The Invoice details given under GSTR – 1/ Table 6A of GSTR – 1 and given under shipping bill should be the same.

3. How can I file Refund application for the IGST paid on export of goods?

There is no requirement to file separate refund for IGST paid on export of goods. The Shipping Bills filed by the taxpayer itself is treated as refund application and the refund amount is processed and paid to the taxpayer if conditions as specified in reply to the question number 2 are fulfilled.

4. Can I save the application for refund?

Application for refund can be saved at any stage of completion for a maximum time period of 15 days. If the same is not submitted within 15 days, the saved draft will be purged from the GST database.

Note: To view your saved application, navigate to Services > Refunds > My Saved/Submitted Application command.

5. How can I track the status of application for refund?

To track your submitted application, navigate to Services > Refunds > Track Application Status command.

6. What is Zero-rated Supply Turnover?

Zero-rated Supply Turnover is the value of total supplies made on account of exports out of India including export to SEZ for the month or period for which refund of ITC has been sought for. This is the value of supplies for the tax period made for export to a country outside India or to a SEZ by the taxpayer as mentioned in his GSTR3B.

7. What is adjusted Total Turnover?

Adjusted total turnover is the value of supplies in a State or Union Territory, pertaining to all supplies except exempted supplies, during the month or the period for which refund has been sought for. This is the value of all the supplies except exempted supplies in State/UT made for the relevant tax period as mentioned in his GSTR3B of that tax period.

8. What is Net ITC?

Net ITC is the Input Tax Credit availed by the Taxpayer in his ITC Ledger during the month or the period for which refund is sought for. It is the amount of ITC taken by the taxpayer through Table 4 of his GSTR3B return of the tax period refund is sought for.

9. What are the relied upon documents I have to submit with refund application for ITC refund?

You have to provide all the documents as are required to be filed along with RFD-01A as notified under CGST/SGST Rules and other such documents the refund sanctioning authority may require.

10. To whom should I file my application with?

The taxpayer shall take the print of RFD-01A application filed by him on GST Common Portal and processed by the system and file the application along with relied upon documents with the jurisdictional officer. For refund of IGST paid on export of goods, there is no need to file separate refund application, the Shipping Bills are treated as refund applications filed by the taxpayers.

To submit the application for refund of ITC on account of Exports without payment of Tax on the GST Portal, perform the following steps:

1. Access the https://www.gst.gov.in/ URL. The GST Home page is displayed.

2. Click the Services > Refunds > Application for Refund command.

The Select the refund type page is displayed. Select the Refund of ITC on Export of Goods & Services without Payment of Integrated Tax option.

Note:

1. Please enter the same turnover of zero rated supply of goods and services (Column 1) under all heads (Integrated, Central, State and Cess).

2. Please enter the same Adjusted total turnover (Column 3) under all heads (Integrated, Central, State and Cess).

Note: “Adjusted Total Turnover” means the turnover in a State or a Union Territory, as defined under clause (112) of section 2, excluding the value of exempt supplies other than zero-rated supplies, during the relevant period.

Net Input Tax Credit: Input tax credit availed on inputs and input services during the relevant period

Turnover of zero rated supply of goods: Value of zero-rated supply of goods made during the relevant period without payment of tax under bond or letter of undertaking

Turnover of zero rated supply of services: Value of zero-rated supply of services made without payment of tax under bond or letter of undertaking

3. Click theCREATEbutton. Select the Financial Year which application has to be filed from the drop-down list.

4. Select theMonthfor which application has to be filed from the drop-down list.

5. Click theCREATEbutton.

6. In the Table Computation of refund to be Claimed (Statement 3A): –

In Column (1) of Turnover of zero rated supply of goods and services (1), enter the turnover of zero rated supply of goods and services under same head i.e. IGST. CGST, SGST enter the same turnover. The said Turn-over of Zero-rated supply may be taken from the column 3.1 (b) of the FORM-GSTR-3B. Presently it is not prepopulated.

In Column (2) of Net input tax credit, enter the Net Input Tax credit for Integrated Tax, Central Tax, State/ UT Tax and Cess separately. Do not club this amount. The figures of Net Input Tax Credit (ITC) in column (2) of table above may be taken from the column 4(C) of the FORM-GSTR-3B respectively. Presently it is not prepopulated.

In Column (3) of Adjusted total turnover, enter the adjusted total turnover. You need to mention the same turnover under all heads.

Refund amount will be determined by using the formulae given in rule 89(4) of the CGST/SGST/UTGST Rules which is as under:

Refund Amount= (Turn-over of Zero-rated supply of Goods+ Turn-over of Zero-rated supply of services) X Net ITC/Adjusted Total Turn-over.

Where –

(A) “Refund amount” means the maximum refund that is admissible;

(B) “Net ITC” means input tax credit availed on inputs and input services during the relevant period;

(C) “Turnover of zero-rated supply of goods” means the value of zero-rated supply of goods made during the relevant period without payment of tax under bond or letter of undertaking;

(D) “Turnover of zero-rated supply of services”means the value of zero-rated supply of services made without payment of tax under bond or letter of undertaking, calculated in the following manner, namely:- Zero-rated supply of services is the aggregate of the payments received during the relevant period for zero-rated supply of services and zero-rated supply of services where supply has been completed for which payment had been received in advance in any period prior to the relevant period reduced by advances received for zero-rated supply of services for which the supply of services has not been completed during the relevant period;

(E) “Adjusted Total turnover” means the turnover in a State or a Union territory, as defined under clause (112) of section 2 of CGST Act, excluding the value of exempt supplies other than zero-rated supplies, during the relevant period;

(F) “Relevant period” means the period for which the claim has been filed.

The Refund Amount will be auto-calculated based on formula.

After filling the appropriate figures in the table (3A), the amount of refund will get auto populated in the column (4) of the Second “Amount Eligible for Refund Table”.

The values as computed in the Refund Amount column in previous table is auto-populated in the Values as per Statement 3A column.

• In Column “Value of Refund Amount as per Statement 3A” amount is reflected from the column 4 of the 3A table.
• In Column “Balance in Electronic Credit Ledger” amount is reflected from the current ITC ledger (Matched ITC).
• In column “Tax Credit Availed during the Period” amount is reflecting from  ITC ledger as the total of ITC availed in that period, for which Refund is being claimed.
• Refund amount is allowable is auto populated in the last Column of “Eligible amount (lowest of all) under corresponding head.

Refund Amount to be claimed’ will be lowest from the table column of the below three:

• Formulae value of Refund Amount as per Statement 3A
• ITC Ledger Balance as on date (Matched/Confirmed ITC)
• ITC Availed for the return period mentioned in Refund Application

7. Select the Bank Account Number from the drop-down list.

8. Click the SAVE button.

Note: To view your saved application, navigate to Services > Refunds > My Saved/Submitted Application command.

Application can be saved at any stage of completion for a maximum time period of 15 days. If the same is not submitted within 15 days, the saved draft will be purged from the GST database.

9. Select the declaration checkbox.

10. Click the PROCEED button.

11. Select the Verification checkbox.

12. In the Name of Authorized Signatory drop-down list, select the name of authorized signatory.

13. Click the SUBMIT WITH DSC or SUBMIT WITH EVC button.

In Case of DSC:

14. Click the PROCEED button.

15. Select the certificate and click the SIGN button.

In Case of EVC:

14. Enter the OTP sent to email and mobile number of the Authorized Signatory registered at the GST Portal and click the VERIFY button.

The success message is displayed and status is changed to Submitted. Application Reference Number (ARN) receipt is downloaded and also sent on your e-mail address and mobile phone number. Click the PDF to open the receipt.

ARN receipt is displayed.

A debit entry shall be made in the Electronic Credit Ledger for the amount claimed as Refund in the Refund Claim Matrix.

Navigate to Services > Ledgers > Electronic Credit Ledger.

The Electronic Credit Ledger is displayed.

Related Topic on GST