Enquiry form
Usually when the GST paid is more than the GST liability a situation of claiming GST refund arises. There is a online procedure to claim a refund which has to be completed within the prescribed time limit that is 2 years from the relevant date.
| Reason for claiming GST Refund | Relevant Date |
|---|---|
| Excess payment of GST | Date of payment |
| Export or deemed export of goods or services | Date of dispatch/loading/passing the frontier |
| ITC accumulates as output is tax exempt or nil-rated | Last date of financial year to which the credit belongs |
| Finalization of provisional assessment | Date on which tax is adjusted |
Refund has to be sanctioned within 60 days from the date of receipt of application complete in all respects. If refund is not sanctioned within the said period of 60 days, interest at the rate notified will have to be paid in accordance with section 56 of the CGST/SGST Act.
Unutilized input tax credit can be allowed as refund in accordance with the provisions of sub-section (3) of section 54 in the following situations:- (i) Zero rated supplies made without payment of tax; (ii) Where credit has accumulated on account of rate of tax on inputs being higher than the rate of taxes on output supplies(other than nil rated or fully exempt supplies) However, no refund of unutilized input tax credit shall be allowed in cases where the goods exported out of India are subjected to export duty,and also in the case wherethe supplier of goods or services or both avails of drawback in respect of central tax or claims refund of the integrated tax paid on suchsupplies.
Provisions relating to refund are contained in section 54 of the CGST Act, 2017. It provides for refund of tax paid on zero-rated supplies of goods or services 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 unutilized input tax credit. Identical provisions exist under the IGST Act, 2017 and relevant SGST/UTGST Acts.
Unjust enrichment occurs when a person retains money or benefits which in justice, equity and good conscience, belong to someone else. This principle stipulates that no person should take advantage of the position of another person which causes some loss to one party and gain to another party.
The principle of unjust enrichment is not applicable in case of exports of goods or services as the recipient is located outside the taxable territory.
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