FAQs : Refund of ITC paid on Exports without payment of Tax

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

To get refund of ITC on account of exports without payment of Tax, you may comply with the activities as specified below:

1. You have to file refund application in Form GST RFD-01 at GST Portal. You can file for refund of multiple tax periods in one refund application.
2. You have to provide turnover of Zero-Rated supplies and Adjusted Total Turnover for the period refund is sought for.
3. The Net ITC in table “Computation of Refund to be claimed” is auto-populated by the system and can be edited downwards considering net ITC availed for the heads of CGST/SGST/IGST together and Cess, in the return for the respective tax period for which refund is claimed, excluding any ITC related to Capital Goods, transition ITC that may have been posted in the ledger on account of transition ITC claims in the said period as well as refund claimed under Rule 89(4A) (deemed export) and/ or (4B) (merchant exporter or export).
4. System will auto calculate the eligible refund amount and post in the last column of table “Maximum refund amount to be claimed”.
5. The applicant should ensure that the amount being claimed as Refund does not exceed such that:

• • the amount in each head is equal to or lower than the balance in each head of Electronic credit ledger;
  • the total refund amount must not exceed the “Maximum Refund amount to be claimed” in Statement 3A; and
  • the total refund amount must not exceed the amount calculated at the aggregate level (IGST+CGST+SGST) in the table “Balance in Electronic Credit Ledger at the end of tax period for which refund is claimed”.

6. Applicant has to be careful while furnishing values in Form GST RFD-01, as no rectification in application is allowed after its filling and must ensure that:

• • Applicant has to ensure that they have filed the Form GSTR-1 and Form GSTR- 3B for the all the tax periods pertaining to which Refund is claimed.
  • They must have exported goods/service on account of which they are claiming ITC refund. In case of Export of Goods, tax payer shall provide Shipping Bill and EGM details.
  • In case of export of services, they should have obtained FIRC/BRC from the concerned bank for receipt of foreign exchange.

7. Once Application Reference Number (ARN) is generated, refund application filed will be assigned to Jurisdictional Refund Processing Officer for processing. Refund applicant can track the status of refund application filed using “Track Application status” functionality on the portal.
8. The Invoice details given under Form GSTR-1 (Table 6A of Form GSTR-1) and as given in refund statement must be same.

2. What are the relied upon documents which I have to upload with refund application for ITC refund?

You have to upload documents as are required to be filed along with Form RFD-01 as notified under CGST Rules or Circulars issued in the matter and other such documents the refund sanctioning authority may require.

3. To whom should I file my application with?

The taxpayer shall file the refund application in Form RFD-01 on GST portal. After filing, refund application shall be assigned to Refund Processing Officer and refund applicant can track the status of refund application.

4. Can I file for multiple tax periods from two different financial years in one refund application?

Yes, you can file for multiple tax periods from two different financial years in one refund application.

For Example:

• You can file separate refund applications in Form GST RFD-01 for the month of Mar 2019, April 2020 and May 2020.
• You can club all three months in a single refund application in Form GST RFD-01 for Mar 2019 to May 2020.

5. Can I file nil refund for multiple tax period in one refund application?

Yes, you can file for nil refund for multiple tax period in one refund application.

6. Can nil period of refund be combined with the period in which there is refund in one application?

Yes, nil period of refund be combined with the period in which there is refund in one application.

 Let us suppose you want to file tax refund from Apr-Sep month, where you want to file nil refund for May-Jun month. There are two ways in which you can file your refund application.

1. You can select Tax Period as Apr-Apr and file normal refund application. You can then select May-Jun and file Nil refund application. And, select Jul-Sep and file normal refund application.
2. You can select Tax Period as Apr-Sep and file normal refund application.

7. 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 filed 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/Filed Applications option.

8. Whether I would be able to file refund application without uploading statement of documents?

No. Statement of documents is mandatory for filing refund application.

The statement uploaded by taxpayer would be validated with the data already declared by the taxpayer while filing return. Only after this data is validated, the taxpayer would be able to file the refund application.

9. From where can I download the utility to upload the statement?

Navigate to Services > Refunds > Application for Refund > Select the refund type > Download Offline Utility link.

10. What is the purpose of Download Offline Utility to upload the statement?

Download Offline Utility is provided to enter and upload details in Statement 3 of documents against which refund is being claimed.

11. Details of which documents are to be entered in the Statement 3 available as Download Offline utility?

Download Offline Utility is provided to enter and upload document details in Statement 3. Under the column Document Type applicant has to select as Invoice/Debit Note/Credit Note and details of these are to be provided in the Statement 3. Multiple Debit note or Credit note issued against invoices can also be entered in this statement.

12. What is the significance of VALIDATE STATEMENT button?

Validate Statement button is used to validate document data provided by the taxpayer from Form GSTR-1 declared data.

13. Can I change data after clicking the VALIDATE STATEMENT button?

Yes, you can change data even after you have validated the uploaded statement. If you want to update/delete the statement, then you would have to first delete the whole statement by clicking the DELETE STATEMENT button and upload a new statement of documents again if needed.

14. What is the purpose of Download Unique Documents?

To download the documents that have been uploaded successfully on the GST Portal, you can click on the hyperlink Download Unique Documents.

15. What is the purpose of Download Invalid Documents?

To download the documents that have not been uploaded successfully along with error details on the GST Portal, you can click on the hyperlink Download Invalid Documents.

16. I am getting a message “validated with error” while uploading statement on the GST Portal. What do I do?

In case any statement is validated with error, click the Download Invalid Document link. Open the invalid document excel sheet. Error details are displayed. You can only rectify the error details in the JSON file and upload on the GST Portal again by clicking the CLICK HERE TO UPLOAD button.

17. I have uploaded statement which has been validated on the GST Portal. I need to upload a new statement of documents again. What do I do?

If you don’t have any error and statement has been validated, and then you want to update/delete the statement, then you would have to first delete the whole statement by clicking the DELETE STATEMENT button and upload a new statement of documents again if needed.

18. I am getting error that “Future date is not allowed for Document” while uploading statement on the GST Portal using the offline utility even if I am providing correct document dates. Why?

For offline utilities, there is no server date available and hence the utility will have to depend on local system date for validation. In case your system has incorrect date, such issues can come.

19. Can I preview the refund application before filing?

Yes, you can preview the refund application in PDF format to check for any inconsistency or discrepancy before filing on the GST Portal.

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

To track your filed application, navigate to Services > Refunds > Track Application Status option.

21. What is ARN?

Once the refund application is filed, Application Reference Number (ARN) receipt would be generated and ARN would be sent to your registered e-mail address and mobile number.

22. Where can I download my filed refund application?

Navigate to Services > User Services > My Applications link to download your filled/filed refund application.

23. What happens when refund application is filed?

• • GST Portal generates an ARN and displays it in a confirmation message, indicating that the refund application has been successfully filed.
  • GST Portal sends the ARN to registered e-mail ID and mobile number of the registered taxpayer.
  • GST Portal also makes a Debit entry in the Electronic Credit Ledger for the amount claimed as refund.

24. Can I view the details of refund claimed in Electronic Credit Ledger?

Yes, you can view the debit entry in the Electronic Credit Ledger for the amount claimed as refund.

25. When / how will the refund Form RFD-01 be processed?

Once the ARN is generated on filing of refund application in Form RFD-01, the refund application along with the documents attached while filing the form would be assigned to Refund Processing Officer for processing the refund. Tax payer can track the status of refund application using track status functionality.

The application will be processed and refund will be disbursed by the Jurisdictional Authority after scrutiny.

26. Is there any validation applied on the refund amount which needs to be entered?

Yes, following validations is applicable for checking amount entered by taxpayer under column “Refund to be claimed”:

1. 1. Refund amount to be claimed such that:-
   2. the amount in each head is equal to or lower than the balance in each head of Electronic credit ledger;
   3. the total refund amount should not exceed the “Maximum Refund amount to be claimed” in Statement 3A; and
   4. the total refund amount should not exceed the amount calculated at the aggregate level (IGST+CGST+SGST) in the table “Balance in Electronic Credit Ledger at the end of tax period for which refund is claimed”
   5. Total Refund Claimed to be entered in Cess must be less than or equal to “Maximum Refund amount to be claimed” in Statement 3A.

For Example: In table “Maximum Refund amount to be claimed” in Statement 3A is 1,00,000 INR.

The amount in table “Balance in Electronic Credit Ledger at the end of tax period for which refund is claimed” is (CGST=0, SGST=0, IGST=1,50,000) and aggregate amount is 1,50,000 INR. Amount available in Electronic Credit Ledger is (CGST=80,000, SGST=10,000, IGST=0). Now, the total refund to be claimed cannot exceed such that-

• • “Maximum Refund amount to be claimed” – 1,00,000 INR
  • Aggregate level of table “Balance in Electronic Credit Ledger at the end of tax period for which refund is claimed” – 1,50,000 INR
  • The total refund amount cannot exceed the balance available in Electronic Credit Ledger at the individual level i.e. (CGST=80,000, SGST=10,000, IGST=0)

Hence, the total refund amount claimed can be (CGST=80,000, SGST=10,000, IGST=0) and total refund amount that can be claimed is 90,000 INR.

27. Can I enter Bank Account details while applying for a refund of ITC on account of exports without payment of Tax?

You cannot enter Bank Account details while applying for refund of ITC on account of exports without payment of Tax, as this ground of refund application is not applicable for casual or NRTP taxpayer for whom registration has been cancelled.