Usually when the GST paid is more than the GST liability a situation of claiming GST refund arises. Under GST the process of claiming a refund is standardized to avoid confusion. The process is online and time limits have also been set for the same.

Usually when the GST paid is more than the GST liability a situation of claiming GST refund arises. Under GST the process of claiming a refund is standardized to avoid confusion. The process is online and time limits have also been set for the same.

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

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

Casual taxable person / Non-Resident taxable person

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

Tax Refund for International Tourists

Let’s take a simple case of excess tax payment made.

Mr. B’s GST liability for the month of September is Rs 50000. But due to mistake, Mr. B made a GST payment of Rs 5 lakh.

Now Mr. B has made an excess GST payment of Rs 4.5 lakh which can be claimed as a refund by him. The time limit for claiming the refund is 2 years from the date of payment.

The time limit for claiming a refund is 2 years from relevant date.

The relevant date is different in every case.

Here are the relevant dates for some cases

Reason for claiming GST RefundRelevantp DateExcess payment of GSTDate of paymentExport or deemed export of goods or servicesDate of despatch/loading/passing the frontierITC accumulates as output is tax exempt or nil-ratedLast date of financial year to which the credit belongsFinalisation of provisional assessmentDate on which tax is adjusted

Also if refund is paid with delay an interest of 24% p.a. is payable by the government.

The refund application has to be made in Form RFD 01 within 2 years from relevant date.