Application for refund of tax, interest, penalty, fees or any other amount.-

89. (1) Any person, except the persons covered under notification issued under section 55, claiming refund of 14[any balance in the electronic cash ledger in accordance with the provisions of sub-section (6) of section 49 or] any tax, interest, penalty, fees or any other amount paid by him, other than refund of integrated tax paid on goods exported out of India, may file 11[,subject to the provisions of rule 10B] an application electronically in FORM GST RFD-01 through the common portal, either directly or through a Facilitation Centre notified by the Commissioner:

15[Provided that any claim for refund relating to balance in the electronic cash ledger in accordance with the provisions of sub-section (6) of section 49 may be made through the return furnished for the relevant tax period in FORM GSTR-3 or FORM GSTR-4 or FORM GSTR-7, as the case may be:]

16[Provided that] in respect of supplies to a Special Economic Zone unit or a Special Economic Zone developer, the application for refund shall be filed by the –

(a) supplier of goods after such goods have been admitted in full in the Special Economic Zone for authorised operations, as endorsed by the specified officer of the Zone;

(b) supplier of services along with such evidence regarding receipt of services for authorised operations as endorsed by the specified officer of the Zone:

2[Provided also that in respect of supplies regarded as deemed exports, the application may be filed by, -
(a) the recipient of deemed export supplies; or
(b) the supplier of deemed export supplies in cases where the recipient does not avail of input tax credit on such supplies and furnishes an undertaking to the effect that the supplier may claim the refund.]

17[Provided further that] refund of any amount, after adjusting the tax payable by the applicant out of the advance tax deposited by him under section 27 at the time of registration, shall be claimed 19[only after the last return required to be furnished by him has been so furnished].

12[Explanation. — For the purposes of this sub-rule, specified officer means a specified officer or an authorised officer as defined under rule 2 of the Special Economic Zone Rules, 2006.‘; ]

11[(1A) Any person, claiming refund under section 77 of the Act of any tax paid by him, in respect of a transaction considered by him to be an intra-State supply, which is subsequently held to be an inter-State supply, may, before the expiry of a period of two years from the date of payment of the tax on the inter-State supply, file an application electronically in FORM GST RFD-01 through the common portal, either directly or through a Facilitation Centre notified by the Commissioner:

Provided that the said application may, as regard to any payment of tax on inter-State supply before coming into force of this sub-rule, be filed before the expiry of a period of two years from the date on which this sub-rule comes into force.]

(2) The application under sub-rule (1) shall be accompanied by any of the following documentary evidences in Annexure 1 in Form GST RFD-01, as applicable, to establish that a refund is due to the applicant, namely:-

(a) the reference number of the order and a copy of the order passed by the proper officer or an appellate authority or Appellate Tribunal or court resulting in such refund or reference number of the payment of the amount specified in subsection (6) of section 107 and sub-section (8) of section 112 claimed as refund;

(b) a statement containing the number and date of shipping bills or bills of export and the number and the date of the relevant export invoices, in a case where the refund is on account of export of goods 12[,other than electricity;]

12[(ba) a statement containing the number and date of the export invoices, details of energy exported, tariff per unit for export of electricity as per agreement, along with the copy of statement of scheduled energy for exported electricity by Generation Plants issued by the Regional Power Committee Secretariat as a part of the Regional Energy Account (REA) under clause (nnn) of subregulation 1 of Regulation 2 of the Central Electricity Regulatory Commission (Indian Electricity Grid Code) Regulations, 2010 and the copy of agreement detailing the tariff per unit, in case where refund is on account of export of electricity;] 

(c) a statement containing the number and date of invoices and the relevant Bank Realisation Certificates or Foreign Inward Remittance Certificates, as the case may be, in a case where the refund is on account of the export of services;

(d) a statement containing the number and date of invoices as provided in rule 46 along with the evidence regarding the endorsement specified in the second proviso to sub-rule (1) in the case of the supply of goods made to a Special Economic Zone unit or a Special Economic Zone developer;

(e) a statement containing the number and date of invoices, the evidence regarding the endorsement specified in the second proviso to sub-rule (1) and the details of payment, along with the proof thereof, made by the recipient to the supplier for authorised operations as defined under the Special Economic Zone Act, 2005, in a case where the refund is on account of supply of services made to a Special Economic Zone unit or a Special Economic Zone developer;

9[(f) a declaration to the effect that tax has not been collected from the Special Economic Zone unit or the Special Economic Zone developer, in a case where the refund is on account of supply of goods or services or both made to a Special Economic Zone unit or a Special Economic Zone developer;]

(g) a statement containing the number and date of invoices along with such other evidence as may be notified in this behalf, in a case where the refund is on account of deemed exports;

(h) a statement containing the number and the date of the invoices received and issued during a tax period in a case where the claim pertains to refund of any unutilised input tax credit under sub-section (3) of section 54where the credit has accumulated on account of the rate of tax on the inputs being higher than the rate of tax on output supplies, other than nil-rated or fully exempt supplies;

(i) the reference number of the final assessment order and a copy of the said order in a case where the refund arises on account of the finalisation of provisional assessment;

(j) a statement showing the details of transactions considered as intra-State supply but which is subsequently held to be inter-State supply;

(k) a statement showing the details of the amount of claim on account of excess payment of tax 20[and interest, if any, or any other amount paid];

18[(ka) a statement containing the details of invoices viz. number, date, value, tax paid and details of payment, in respect of which refund is being claimed along with copy of such invoices, proof of making such payment to the supplier, the copy of agreement or registered agreement or contract, as applicable, entered with the supplier for supply of service, the letter issued by the supplier for cancellation or termination of  agreement or contract for supply of service, details  of payment received from the supplier against cancellation or termination of such agreement along with proof thereof, in a case where the refund is claimed by an unregistered person where the agreement or contract for supply of service has been cancelled or terminated;

(kb) a certificate issued by the supplier to the effect that he has paid tax in respect of the invoices on which refund is being claimed by the applicant; that he has not adjusted the tax amount involved in these invoices against his  tax liability by issuing credit note; and also, that he has not claimed and will not claim refund of the amount of tax involved in respect of these invoices, in a case where the refund is claimed by an unregistered person where the agreement or contract for supply of service has been cancelled or terminated;]

(l) a declaration to the effect that the incidence of tax, interest or any other amount claimed as refund has not been passed on to any other person, in a case where the amount of refund claimed does not exceed two lakh rupees:

Provided that a declaration is not required to be furnished in respect of the cases covered under clause (a) or clause (b) or clause (c) or clause (d) or clause (f) of sub-section (8) of section 54;

(m) a Certificate in Annexure 2 of FORM GST RFD-01 issued by a chartered accountant or a cost accountant to the effect that the incidence of tax, interest or any other amount claimed as refund has not been passed on to any other person, in a case where the amount of refund claimed exceeds two lakh rupees:

Provided that a certificate is not required to be furnished in respect of cases covered under clause (a) or clause (b) or clause (c) or clause (d) or clause (f) of subsection (8) of section 54;

18[Provided further that a certificate is not required to be furnished in cases where refund is claimed by an unregistered person who has borne the incidence of tax.]

Explanation.– For the purposes of this rule-

(i) in case of refunds referred to in clause (c) of sub-section (8) of section 54, the expression “invoice” means invoice conforming to the provisions contained in section 31;

(ii) where the amount of tax has been recovered from the recipient, it shall be deemed that the incidence of tax has been passed on to the ultimate consumer.

(3) Where the application relates to refund of input tax credit, the electronic credit ledger shall be debited by the applicant by an amount equal to the refund so claimed.

3(4) In the case of zero-rated supply of goods or services or both without payment of tax under bond or letter of undertaking in accordance with the provisions of sub-section (3) of section 16 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), refund of input tax credit shall be granted as per the following formula -

Refund Amount = (Turnover of zero-rated supply of goods + Turnover of zero-rated supply of services) x Net ITC ÷Adjusted Total Turnover

Where,-

(A) "Refund amount" means the maximum refund that is admissible;

(B) "Net ITC" means input tax credit availed on inputs and input services during the relevant period;

(C) "Turnover of zero-rated supply of goods" means the value of zero-rated supply of goods made during the relevant period without payment of tax under bond or letter of undertaking;

10(C) “Turnover of zero-rated supply of goods" means the value of zero-rated supply of goods made during the relevant period without payment of tax under bond or letter of undertaking or the value which is 1.5 times the value of like goods domestically supplied by the same or, similarly placed, supplier, as declared by the supplier, whichever is less, other than the turnover of supplies in respect of which refund is claimed under sub-rules (4A) or (4B) or both;

(D) "Turnover of zero-rated supply of services" means the value of zero-rated supply of services made without payment of tax under bond or letter of undertaking, calculated in the following manner, namely:- Zero-rated supply of services is the aggregate of the payments received during the relevant period for zero-rated supply of services and zero-rated supply of services where supply has been completed for which payment had been received in advance in any period prior to the relevant period reduced by advances received for zero-rated supply of services for which the supply of services has not been completed during the relevant period;

(E) "Adjusted Total turnover" means the turnover in a State or a Union territory, as defined under 1[clause] (112) of section 2, excluding the value of exempt supplies other than zero-rated supplies, during the relevant period,

7(E) “Adjusted Total Turnover” means the sum total of the value of-

(a) the turnover in a State or a Union territory, as defined under clause (112) of section 2, excluding the turnover of services; and

(b) the turnover of zero- rated supply of services determined in terms of clause (D) above and non-zero-rated supply of services, excluding-

(i) the value of exempt supplies other than zero-rated supplies; and

(ii) the turnover of supplies in respect of which refund is claimed under sub-rule (4A) or sub-rule (4B) or both, if any, during the relevant period.

(F) “Relevant period” means the period for which the claim has been filed. 

12[Explanation. – For the purposes of this sub-rule, the value of goods exported out of India shall be taken as –

  1. the Free on Board (FOB) value declared in the Shipping Bill or Bill of Export form, as the case may be, as per the Shipping Bill and Bill of Export (Forms) Regulations, 2017; or
  2. the value declared in tax invoice or bill of supply, whichever is less.; ]

4(4A) In the case of supplies received on which the supplier has availed the benefit of the Government of India, Ministry of Finance, notification No. 48/2017-Central Tax dated the 18th October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1305 (E) dated the 18th October, 2017, refund of input tax credit, availed in respect of other inputs or input services used in making zero-rated supply of goods or services or both, shall be granted.

5[(4B) Where the person claiming refund of unutilised input tax credit on account of zero rated supplies without payment of tax has –

(a) received supplies on which the supplier has availed the benefit of the Government of India, Ministry of Finance, notification No. 40/2017-Central Tax (Rate), dated the  23rd October, 2017,  published in the Gazette of India, Extraordinary, Part II, Section  3, Sub-section (i), vide number G.S.R 1320 (E), dated the 23rd October, 2017 or notification No. 41/2017-Integrated Tax (Rate), dated the 23rd October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1321(E), dated the 23rd October, 2017; or 

 

(b) availed the benefit of notification No. 78/2017-Customs, dated the 13th October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1272(E), dated the 13th October, 2017 or notification No. 79/2017 Customs, dated the 13th October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1299(E), dated the 13th October, 2017,   the refund of input tax credit, availed in respect of inputs received under the said notifications for export of goods and the input tax credit availed in respect of other inputs or input services to the extent used in making such export of goods, shall be  granted.

6(5) In the case of refund on account of inverted duty structure, refund of input tax credit shall be granted as per the following formula:-

Maximum Refund Amount = {(Turnover of inverted rated supply of goods and services) x Net ITC ÷ Adjusted Total Turnover} - 13[{tax payable on such inverted rated supply of goods and services x (Net ITC’ ITC availed on inputs and input services)}].

Explanation:- For the purposes of this sub-rule, the expressions –

(a) “Net ITC” shall mean input tax credit availed on inputs during the relevant period other than the input tax credit availed for which refund is claimed under sub-rules (4A) or (4B) or both; and 

(b) “Adjusted Total turnover” shall have the same meaning as assigned to it in sub-rule (4). 8"Adjusted Total turnover" and "relevant period" shall have the same meaning as assigned to them in sub-rule (4).

 

 

 

 

Notes:

1.Subsituted by Notification No. 17/2017  –Central Tax issued dated 27th July,2017

In Clause (E) of sub-section(4) , for the words “sub-section”, the words “clause” shall be substituted.

 

2. Subsituted by Notification No. 47/2017  –Central Tax issued dated 18th October, 2017

In sub-rule (1), for third proviso-

Provided also that in respect of supplies regarded as deemed exports, the application shall be filed by the recipient of deemed export supplies the words Provided also that in respect of supplies regarded as deemed exports, the application may be filed by, -
(a) the recipient of deemed export supplies; or
(b) the supplier of deemed export supplies in cases where the recipient does not avail of input tax credit on such supplies and furnishes an undertaking to the effect that the supplier may claim the refund.

The following shall be shall be substituted namely-

"Provided also that in respect of supplies regarded as deemed exports, the application may be filed by, -
(a) the recipient of deemed export supplies; or
(b) the supplier of deemed export supplies in cases where the recipient does not avail of input tax credit on such supplies and furnishes an undertaking to the effect that the supplier may claim the refund."

3. Subsituted by Notification No. 75/2017 –Central Tax issued dated 29th December, 2017

Prior it was read as- Original content

4.Subsituted by Notification No. 3/2018 –Central Tax issued dated 23th January, 2018 

5.Subsituted by Notification No. 3/2018 –Central Tax issued dated 23th January, 2018 

6. Substituted by Notification No. 26/2018 –Central Tax issued dated 13th June, 2018 

7. Subsitituted by Notification No. 39/2018 – Central Tax Dated 04/09/2018.

8. Subsitituted by Notification No. 74/2018 – Central Tax issued dated 31st December,2018.

9. Subsitituted by Notification No. 03/2019 – Central Tax dated by 29th January, 2019

In sub-rule 2, clause (f),

(f) a declaration to the effect that the Special Economic Zone unit or the Special Economic Zone developer has not availed the input tax credit of the tax paid by the supplier of goods or services or both, in a case where the refund is on account of supply of goods or services made to a Special Economic Zone unit or a Special Economic Zone developer; 

The following sub-rule shall be subsitituted namely-

"(f) a declaration to the effect that tax has not been collected from the Special Economic Zone unit or the Special Economic Zone developer, in a case where the refund is on account of supply of goods or services or both made to a Special Economic Zone unit or a Special Economic Zone developer;"

10. Substituted by Notification no 16/2020 -Central Tax dated 23.03.2020

11. Inseted by the Central Goods and Services Tax (Eighth Amendment) Rules, 2021 Notification No. 35/2021 – Central Tax dated 24.09.2021 w.e.f 01.01.2022

12. Inserted by Central Goods and Services Tax (Amendment) Rules, 2022 Notification No. 14/2022 – Central Tax dated 05.07.2022

 

13. Substituted by Central Goods and Services Tax (Amendment) Rules, 2022 Notification No. 14/2022 – Central Tax dated 05.07.2022

In sub-rule (5), for the words-

tax payable on such inverted rated supply of goods and services

The Following shall be substituted namely-

"{tax payable on such inverted rated supply of goods and services x (Net ITC’ ITC availed on inputs and input services)}."

 

14. Inserted by the Central Goods and Services Tax (Second Amendment) Rules, 2022 Notification No. 19/2022–Central Tax dated 28.09.2022 w.e.f  01.10.2022.

 

15. Omitted by the Central Goods and Services Tax (Second Amendment) Rules, 2022 Notification No. 19/2022–Central Tax dated 28.09.2022 w.e.f  01.10.2022.

 

16. Substituted by the Central Goods and Services Tax (Second Amendment) Rules, 2022 Notification No. 19/2022–Central Tax  dated 28.09.2022 w.e.f  01.10.2022.

In sub-rule (1), In the second proviso, for the words-

"Provided further that"

The following shall be substituted only-

"Provided that"

 

17. Substituted by the Central Goods and Services Tax (Second Amendment) Rules, 2022 Notification No. 19/2022–Central Tax  dated 28.09.2022 w.e.f  01.10.2022.

In sub-rule (1), In the third proviso, for the words-

"Provided also that"

The following shall be substituted only-

"Provided further that"

 

18. Inserted by the Central Goods and Services Tax (Fifth Amendment) Rules, 2022 Notification No. 26/2022 – Central Tax dated 26.12.2022

 

19.Substituted by the Central Goods and Services Tax (Second Amendment) Rules, 2023 Notification No. 38/2023 – Central Tax dated 04.08.2023

In sub-rule (1), in third proviso, for the words -

"in the last return required to be furnished by him"

 The following shall be substituted namely-

“only after the last return required to be furnished by him has been so furnished”

 

20. Inserted by the Central Goods and Services Tax (Second Amendment) Rules, 2023 Notification No. 38/2023 – Central Tax dated 04.08.2023