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GST Refund Application, Payment & Procedure

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    Complete Guide on GST Refund.

    There is no uncertainty that for every taxpayer provision related to refunds are always most favorite under any Act and GST Act is no different. In fact, every association designs their business process in such a manner so as to make optimum use of the refund provisions.

    We are trying to provide the readers the ready reckoner and the significant points that should be kept in mind while filing refund applications incorporating all the important Sections, Rules and Circulars up to 31 March 2020 with the help of this article.

    For the sake of easy understanding, we shall be discussing the refund provisions in the following manner:

    • Points to be considered while filing refund applications
    • Procedure of filing refund application
    • Types of refund

    Points To Be Considered While Filing Gst Refund Applications

    Refund applications must be filed electronically, with manual applications permitted only in exceptional circumstances. Refunds can be claimed for a single tax period or by combining multiple tax periods, even across different financial years.

    When the Input Tax Credit (ITC) on inward supplies is spread over multiple months but zero-rated or inverted duty supplies are made in fewer months, the refund period should be chosen to maximize the refund amount.

    To claim a refund for tax and interest, if any, it must be done before two years from the significant date. The significant date is specified for each refund case.

    Refunds will not be processed if the amount is less than Rs. 1,000 for each tax head separately, not cumulatively. The refund allowed may be adjusted against any outstanding tax or other dues from the applicant.

    If the refund is not credited to the applicant’s bank account within 60 days from the date of the Application Reference Number (ARN) generation, the applicant is eligible for interest at 6% for the period exceeding 60 days until the actual refund date.

    For refunds involving Input Tax Credit (ITC), subsequent refund applications for previous periods are not allowed once a refund is submitted for any tax period. Refund of only the ITC appearing in Form GSTR-2A of the applicant is allowed, although this guideline is subject to litigation as it contradicts the eligibility of ITC as per the Act and Rules.

    Transitional Credit cannot be considered part of Net ITC, and therefore, no refund is allowed on it.

    For refunds involving tax payments made by both Credit and Cash ledgers, the refund is processed in the same proportion in which the original payment was made.

    The complete refund for all tax heads (IGST, CGST, SGST, and cess) is processed by the same jurisdictional officer to whom the refund application is forwarded by the portal.

    In cases of refunds due to the export of goods with tax payment, the shipping bill filed by the exporter is considered an application for refund, along with details filled in GSTR-1 and GSTR-3B.

    Online Procedure of Partnership Firm Registration in India.

    TYPE 1

    Refund of tax paid on supplies made to SEZ Unit/SEZ Developer with payment of tax

    • The refund shall be filed once the supply is admitted in full in SEZ for authorised operations as endorsed by the specified officer of the zone
    • The details of supply to SEZ shall be uploaded in statement 4

    TYPE 2

    Refund of tax paid on export of services with payment of tax

    • Unlike the case of export of goods with tax (refer last paragraph of points to be considered for goods), refund in the case of export of services with payment of tax needs to be filed separately
    • The details of the invoices and corresponding BRC/ FIRC shall be uploaded in statement 2
    • The relevant date remains the same as mentioned in above point

    TYPE 3

    Refund of untilized ITC on account of supplies made to SEZ unit/SEZ Developer without payment of tax

    The amount of refund shall be the least of:

    • (Zero Rated Turnover/Adjusted Total Turnover) * Net ITC
    • Balance in Electronic Credit Ledger at the time of filing of refund
    • Balance in Electronic Credit Ledger at the end of period for which refund is filed

    The refund shall be filed once the supply is admitted in full in SEZ for authorised operations as endorsed by the specified officer of the zone

    The details of supply to SEZ shall be uploaded in statement 5

    TYPE 4

    Refund of excess balance in Electronic Cash Ledger

    Balance lying in Electronic Cash ledger, which can be on account of excess challan payment or due to excess TDS deduction can be claimed as refund under this category

    TYPE 5

    Refund of excess payment of tax

    Supporting documents to establish excessive payment of tax shall be uploaded with the refund application

    TYPE 6

    Refund of tax paid on intra-State supply which is subsequently held to be inter-State supply and vice versa

    The details of supplies wherein the Place of Supply has changed shall be uploaded in the refund application in statement 6 stating the initial Place of Supply considered along with tax paid and the re-assessed Place of Supply with taxes

    TYPE 7

    Refund on account of assessment/provisional assessment/appeal/any other order

    Reference number and copy of the assessment / appeal / any order along with proof of payment of pre-deposit for which refund is being claimed shall be uploaded

    TYPE 8

    Refund on account of “any other” ground or reason

    Any other refund case which is not included in any of the cases can be claimed in this category mentioning the specification and amount of refund at the portal

    Why Taxvilla

    On average, it takes around 7-10 working days to register a private limited company in India subject to document verification by MCA.

    • Complete Digital
    • Free Expert Assistance
    • Best Price Guarantee
    • 4.9/5 Google Rating
    • Money Back Guarantee
    • Simple & Fast Process

    Frequently Asked Questions (FAQs)

    You can easily register your private limited company by arranging all the required documents and fulfilling the requirements as per the Companies Act, 2013.
    In order to register your private limited company in India, you need to provide identity and address proof of all the members along with address proof of the registered office.

    Note : You don’t need a commercial place for registration, you can use your residential home address for incorporation.
    No, GST is not mandatory for private limited companies.
    There is no minimum capital requirement for private limited company registration. One can start a company with a share capital of as low as ₹10.
    LLP and Pvt Ltd Company both have their own pros and cons. It completely depends upon the requirement of the business.
    Yes. A Limited Liability Partnership can be converted into a private limited company easily. To read more, refer to this page on

    Complete Guide on GST Refund.

    There is no uncertainty that for every taxpayer provision related to refunds are always most favorite under any Act and GST Act is no different. In fact, every association designs their business process in such a manner so as to make optimum use of the refund provisions.

    We are trying to provide the readers the ready reckoner and the significant points that should be kept in mind while filing refund applications incorporating all the important Sections, Rules and Circulars up to 31 March 2020 with the help of this article.

    For the sake of easy understanding, we shall be discussing the refund provisions in the following manner:

    • Points to be considered while filing refund applications
    • Procedure of filing refund application
    • Types of refund

    POINTS TO BE CONSIDERED WHILE FILING GST REFUND APPLICATIONS

    Refund applications must be filed electronically, with manual applications permitted only in exceptional circumstances. Refunds can be claimed for a single tax period or by combining multiple tax periods, even across different financial years.

    When the Input Tax Credit (ITC) on inward supplies is spread over multiple months but zero-rated or inverted duty supplies are made in fewer months, the refund period should be chosen to maximize the refund amount.

    To claim a refund for tax and interest, if any, it must be done before two years from the significant date. The significant date is specified for each refund case.

    Refunds will not be processed if the amount is less than Rs. 1,000 for each tax head separately, not cumulatively. The refund allowed may be adjusted against any outstanding tax or other dues from the applicant.

    If the refund is not credited to the applicant’s bank account within 60 days from the date of the Application Reference Number (ARN) generation, the applicant is eligible for interest at 6% for the period exceeding 60 days until the actual refund date.

    For refunds involving Input Tax Credit (ITC), subsequent refund applications for previous periods are not allowed once a refund is submitted for any tax period. Refund of only the ITC appearing in Form GSTR-2A of the applicant is allowed, although this guideline is subject to litigation as it contradicts the eligibility of ITC as per the Act and Rules.

    Transitional Credit cannot be considered part of Net ITC, and therefore, no refund is allowed on it.

    For refunds involving tax payments made by both Credit and Cash ledgers, the refund is processed in the same proportion in which the original payment was made.

    The complete refund for all tax heads (IGST, CGST, SGST, and cess) is processed by the same jurisdictional officer to whom the refund application is forwarded by the portal.

    In cases of refunds due to the export of goods with tax payment, the shipping bill filed by the exporter is considered an application for refund, along with details filled in GSTR-1 and GSTR-3B.

    Online Procedure of Partnership Firm Registration in India.

    TYPE 1

    Refund of tax paid on supplies made to SEZ Unit/SEZ Developer with payment of tax

    • The refund shall be filed once the supply is admitted in full in SEZ for authorised operations as endorsed by the specified officer of the zone
    • The details of supply to SEZ shall be uploaded in statement 4

    TYPE 2

    Refund of tax paid on export of services with payment of tax

    • Unlike the case of export of goods with tax (refer last paragraph of points to be considered for goods), refund in the case of export of services with payment of tax needs to be filed separately
    • The details of the invoices and corresponding BRC/ FIRC shall be uploaded in statement 2
    • The relevant date remains the same as mentioned in above point

    TYPE 3

    Refund of untilized ITC on account of supplies made to SEZ unit/SEZ Developer without payment of tax

    The amount of refund shall be the least of:

    • (Zero Rated Turnover/Adjusted Total Turnover) * Net ITC
    • Balance in Electronic Credit Ledger at the time of filing of refund
    • Balance in Electronic Credit Ledger at the end of period for which refund is filed

    The refund shall be filed once the supply is admitted in full in SEZ for authorised operations as endorsed by the specified officer of the zone

    The details of supply to SEZ shall be uploaded in statement 5

    TYPE 4

    Refund of excess balance in Electronic Cash Ledger

    Balance lying in Electronic Cash ledger, which can be on account of excess challan payment or due to excess TDS deduction can be claimed as refund under this category

    TYPE 5

    Refund of excess payment of tax

    Supporting documents to establish excessive payment of tax shall be uploaded with the refund application

    TYPE 6

    Refund of tax paid on intra-State supply which is subsequently held to be inter-State supply and vice versa

    The details of supplies wherein the Place of Supply has changed shall be uploaded in the refund application in statement 6 stating the initial Place of Supply considered along with tax paid and the re-assessed Place of Supply with taxes

    TYPE 7

    Refund on account of assessment/provisional assessment/appeal/any other order

    Reference number and copy of the assessment / appeal / any order along with proof of payment of pre-deposit for which refund is being claimed shall be uploaded

    TYPE 8

    Refund on account of “any other” ground or reason

    Any other refund case which is not included in any of the cases can be claimed in this category mentioning the specification and amount of refund at the portal

    Why Taxvilla

    On average, it takes around 7-10 working days to register a private limited company in India subject to document verification by MCA.

    • Complete Digital
    • Free Expert Assistance
    • Best Price Guarantee
    • 4.9/5 Google Rating
    • Money Back Guarantee
    • Simple & Fast Process

    Frequently Asked Questions (FAQs)

    You can easily register your private limited company by arranging all the required documents and fulfilling the requirements as per the Companies Act, 2013.
    In order to register your private limited company in India, you need to provide identity and address proof of all the members along with address proof of the registered office.

    Note : You don’t need a commercial place for registration, you can use your residential home address for incorporation.
    No, GST is not mandatory for private limited companies.
    There is no minimum capital requirement for private limited company registration. One can start a company with a share capital of as low as ₹10.
    LLP and Pvt Ltd Company both have their own pros and cons. It completely depends upon the requirement of the business.
    Yes. A Limited Liability Partnership can be converted into a private limited company easily. To read more, refer to this page on

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