What happens if there will be more than the required amount of GST deducted?
Are you wondering Who can claim a refund in GST?
This article will guide you through all the information regarding GST refunds.
Without further delay, let’s get started.
In accordance with Section 54(3) of the CGST Act, 2017, registered taxpayers can claim a GST refund at the end of a tax period. In other words, on a monthly basis, a refund can be claimed.
Furthermore, GST refund claims should be filed within two years from the relevant date.
However, the GST Law permits refund in two scenarios:
- If such credit accumulation is on account of zero-rated supplies
- On account of inverted duty structure, subject to certain exceptions.
Can individuals claim a GST refund?
Yes, individuals can claim a GST refund. Any registered person can claim a refund at the end of any tax period. You need to file an application electronically in FORM GST RFD-01 through the GST Common Portal.
Who is not eligible for GST?
The following goods are notified by the government, in which unutilized ITC will not be admissible as a refund:
| S. No. | Tariff item, heading, sub-heading or Chapter | Description of Goods |
| 1 | 5007 | Woven fabrics of silk or of silk waste |
| 2 | 5111 to 5113 | Woven fabrics of wool or of animal hair |
| 3 | 5208 to 5212 | Woven fabrics of cotton |
| 4 | 5309 to 5311 | Woven fabrics of other vegetable textile fibres, paper yarn |
| 5 | 5407, 5408 | Woven fabrics of manmade textile materials |
| 6 | 5512 to 5516 | Woven fabrics of manmade staple fibres |
| 7 | 60 | Knitted or crocheted fabrics [All goods] |
| 8 | 8601 | Rail locomotives powered from an external source of electricity or by electric accumulators |
| 9 | 8602 | Other rail locomotives; locomotive tenders; such as Diesel-electric locomotives, Steam locomotives and tenders thereof |
| 10 | 8603 | Self-propelled railway or tramway coaches, vans and trucks, other than those of heading 8604 |
| 11 | 8604 | Railway or tramway maintenance or service vehicles, whether or not selfpropelled (for example, workshops, cranes, ballast tampers, track liners, testing coaches and track inspection vehicles) |
| 12 | 8605 | Railway or tramway passenger coaches, not self-propelled; luggage vans, post office coaches and other special purpose railway or tramway coaches, not self-propelled (excluding those of heading 8604) |
| 13 | 8606 | Railway or tramway goods vans and wagons, not self-propelled |
| 14 | 8607 | Parts of railway or tramway locomotives or rolling-stock; such as Bogies, Bissell-bogies, axles and wheels, and parts thereof |
| 15 | 8608 | Railway or tramway track fixtures and fittings; mechanical (including electro-mechanical) signaling, safety or traffic control equipment for railways, tramways, roads, inland waterways, parking facilities, port installations or airfields; parts of the foregoing |
When can a GST refund be claimed?
Within 2 years from the relevant date, you can file GST refund claims.
Within 60 days, a refund will be sanctioned, if the claim is in order. The amount of interest applied is 6%.
How do I get my GST refund?
To claim a refund, you need to follow the steps below:
- Go to the Services tab after logging in GST portal.
- Click on Refunds.
- Select the Refund pre-application form option.
- Now fill in the details asked on the form.
- Details like nature of business, date of issue of IEC, Aadhaar number, the value of exports, income tax paid, and advance tax paid need to be filled in.
- Click on Submit.
FAQ: Who can claim a refund in GST?
Do you automatically get a GST refund?
Yes, you are automatically considered for the GST credit when you file your taxes. You just need to file your taxes every year, and automatically it will determine, whether you are eligible or not.
Can I claim GST refund every month?
Yes, you can claim a GST refund on a monthly basis.
Can I register GST if turnover is less than 75000?
The threshold limit for service providers has not changed.
If the aggregate turnover exceeds Rs. 20 lakh(normal category states) and Rs. 10 lakh (special category states), then persons providing services need to register for GST.
Wrapping Up
We sincerely hope that now you have a complete understanding of Who can claim a refund in GST?
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