Refund of ITC on export without payment of tax

Application form for claiming refund

any person claiming refund of any tax, interest, penalty, fees, or any other amount paid by him may file an application in form GST RFD-01 electronically through GST common portal.

As per section 54(3), a registered person may claim refund of any unutilised ITC at the end of any tax period.

Zero rated supplies without payment of tax:-  Supply of goods and /or services to an SEZ developer /unit or export of goods and /or services under bond or letter of undertaking (LUT) without payment of IGST subject to such conditions, safeguards and procedure as may be prescribed, are zero rated supplies without payment of tax. In such cases, refund of unutilised ITC at the end of any tax period, of amount determined under rule 89 (4) , shall be granted to the applicant and the electronic credit ledger shall be debited by the applicant by an amount equal to the refund so claimed.

Filing of refund applications in FORM GST RFD-01

With effect from 26.09.2019, the applications for the following types of refunds shall be filed in FORM GST RFD 01 on the common portal and the same shall be processed electronically. Refund of unutilized input tax credit (ITC) on account of exports without payment of tax.

Procedure for filing refund:-

A.  FORM GST RFD-01 shall be filled on the common portal by an applicant seeking refund under any of the categories mentioned above. This shall entail filing of statements/declarations/undertakings which are part of FORM GST RFD-01 itself, and also uploading of other documents/invoices which shall be required to be provided by the applicant for processing of the refund claim. A comprehensive list of such documents is provided at Annexure-A and it is clarified that no other document needs to be provided by the applicant at the stage of filing of the refund application. The facility of uploading these other documents/invoices shall be available on the common portal where four documents, each of maximum 5MB, may be uploaded along with the refund application. Neither the refund application in FORM GST RFD-01 nor any of the supporting documents shall be required to be physically submitted to the office of the jurisdictional proper officer.

B.  The Application Reference Number (ARN) will be generated only after the applicant has completed the process of filing the refund application in FORM GST RFD-01, and has completed uploading of all the supporting documents/ undertaking/ statements/invoices and, where required, the amount has been debited from the electronic credit/cash ledger.

C.  As soon as the ARN is generated, the refund application along with all the supporting documents shall be transferred electronically to the jurisdictional proper officer who shall be able to view it on the system. The application shall be deemed to have been filed under sub-rule (2) of rule 90 of the CGST Rules on the date of generation of the said ARN and the time limit of 15 days to issue acknowledgement or a deficiency memo, as the case may be, shall be counted from the said date. This will obviate the need for an applicant to visit the jurisdictional tax office for the submission of the

refund application and /or any of the supporting documents. Accordingly, the acknowledgement for the complete application (FORM GST RFD-02) or deficiency memo (FORM GST RFD-03), as the case may be, would be issued electronically by the jurisdictional tax officer based on the documents so received from the common portal.

D. If a refund application is electronically transmitted to the wrong jurisdictional officer, he/she shall reassign it to the correct jurisdictional officer electronically as soon as possible, but not later than three working days, from the date of generation of the ARN. Deficiency memos shall not be issued in such cases merely on the ground that the applications were received electronically in the wrong jurisdiction.

E. It may be noted that the facility to reassign such refund applications is already available with the Commissioner or the officer(s) authorized by him.

Preparing of Annuxure for claiming refund

The proper officer shall rely upon FORM GSTR-2A as an evidence of the accountal of the supply by the corresponding supplier(s) in relation to which the input tax credit has been availed by the applicant. Such applicants shall also upload the details of all the invoices on the basis of which input tax credit has been availed during the relevant period for which the refund is being claimed, in the format enclosed as Annexure-B along with the application for refund claim. Such availment of ITC will be subject to restriction imposed under sub-rule (4) in rule 36 of the CGST rules inserted vide Notification No. 49/2019-CT dated 09.10.2019. The applicant shall also declare the eligibility or otherwise of the input tax credit availed against the invoices related to the claim period in the said format for enabling the proper officer to determine the same. Self-certified copies of invoices in relation to which the refund of ITC is being claimed and which are declared as eligible for ITC in Annexure – B, but which are not populated in FORM GSTR-2A, shall be uploaded by the applicant along with the application in FORM GST RFD 01. It is emphasized that the proper officer shall not insist on the submission of an invoice (either original or duplicate) the details of which are available in FORM GSTR-2A of the relevant period uploaded by the applicant.

Note: The third proviso to sub-section (3) of section 54 of the CGST Act states that no refund of input tax credit shall be allowed in cases where the supplier of goods or services or both avails of drawback in respect of Central tax. It is clarified that if a supplier avails of drawback in respect of duties rebated under the Customs and Central Excise Duties Drawback Rules, 2017, he shall be eligible for refund of unutilized input tax credit of Central tax/ State tax/ Union Territory tax / Integrated tax/ Compensation cess. It is also clarified that refund of eligible credit on account of State tax shall be available if the supplier of goods or services or both has availed of drawback in respect of Central tax.

 Documents required for claiming refund of ITC (Annexure-A)

List of all statements/declarations/undertakings/certificates and other supporting documents to be provided along with the refund application.

Declaration/Statement/Undertaking/Certificates to be filled online

• Declaration under second and third proviso to section 54(3)
• Undertaking in relation to sections 16(2)(c) and section 42(2) 
• Statement 3 under rule 89(2)(b) and rule 89(2)(c)
• Statement 3A under rule 89(4)

Supporting documents to be additionally uploaded

• Copy of GSTR-2A of the relevant period
• Statement of invoices (Annexure-B)
• Self-certified copies of invoices entered in Annexure-B whose details are not found in GSTR-2A of the relevant period
• BRC/FIRC in case of export of services and shipping bill (only in case of exports made through non-EDI ports) in case of goods

                                                                      Annexure-B

                    Statement of invoices to be submitted with application for refund of unutilized ITC

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Sr. No	GSTIN of the Supplier	Name of the Supplier	Invoice Details	Type	Central Tax	State Tax/ Union Territory Tax	Integrated Tax	Cess	Eligible for ITC	Amount of eligible ITC	Whether invoices included in GSTR-2A Y/N
			Invoice No.	Date	Value	Inputs/Input Services/cap ital goods			Yes/No/Partially
1	2	3	4	5	6	7	8	9	10	11	12