Term Refund processing backend system under GST

Meaning of term Refund processing backend system under GST


This post explains about Refund processing backend system under GST.  

Refund processing backend system

GST is all about a smooth flow of funds and compliances till the end. To facilitate such a smooth flow, it is imperative for the Government to provide for a hassle-free refund process. The current tax structure is cumbersome, and it takes months and sometimes years to get refunds from the Government’s kitty.

GST provides for a clearer and efficient invoice based tracking system, verifying the transactions on an individual basis, thus, allowing systematic checking of the same. It comes as a huge relief for manufacturers or exporters, especially those in a 100% EOU or Special Economic Zone, whose working capital gets tied up in this cumbersome refund process.

Refund Application Process Under GST

The refund application has to be made in Form RFD-01 (to be certified by a Chartered Accountant) within a period of 2 years from the

“relevant date.” This relevant date is different for different scenarios.

1.            When the goods are exported through air or sea, then relevant date shall be the date on which such ship or aircraft leaves India.

2.            When the goods are carried by a land vehicle, then relevant date shall be the date when the goods cross the land frontier of the country

3.            When goods are sent through post, then relevant date shall be the date of despatch of goods from the Post Office.

4.            When the supply includes services, and when the same is completed before receipt of payment, then relevant date shall be the payment receipt date.

5.            Similarly, when the services are performed after receipt of an advance, then relevant date shall be the invoice date.

6.            Where refund claim is made for excess input tax credit left unutilised, then relevant date shall be the end of the financial year for which such refund claim is being made.

7.            Where the goods are supplied for deemed exports, i.e. supply to SEZ or 100% EOU, the relevant date shall be the return filing date related to such deemed exports was filed.

8.            Where refund arises due to an order passed in favour of the appellant, then relevant date shall be the date of such order.

9.            Where tax was paid following a provisional assessment and refund now arises, then relevant date shall be date at which such tax was adjusted.

10.          When the person claiming refund is not the supplier, then relevant date shall be the date at which the goods are received by such person.

11.          For all other cases, relevant date shall be the date of payment of tax.

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