Automated GST Refund for Exporters and Suppliers to SEZ likely from June 2019

Currently exporters are allowed automated refund in cases where the IGST is paid upfront (i.e. Exports made with payment of duty). Refund application is to be made by the exporters who claim refund of ITC as well as for the suppliers to SEZ.

If Ministry sources are to be believed, Exporters of goods and services as well as suppliers to SEZ units or developers are likely to get automatic GST Refund. Department is planning to introduce faceless scrutiny of refunds and thus faster claim settlement.

Currently, exporters who export goods or services, without payment of duty, and suppliers to SEZ units or developers are required to make refund claim in Form RFD – 01A on the common portal and submit the same along with print out of other documents. The refund application is then scrutinized by the department and refund is granted. This process takes a longer time.

Once the new scheme is implemented, the refund processing claim shall get reduced to a fortnight.

Claiming GST refund!

An application for gst refund shall be filed online in form GST RFD 01 & shall be filed within a maximum of 2 years from the date.

Once an application has been filed, it would be forwarded to the GSTofficer, who will within a period of 15 days of filing of the application scrutinize the application for its completeness and if the application is found to be correct in all aspects, an acknowledgement form GST RFD 02shall be made available from the online website, wherein have to mention the date of filing of the claim for the refund and the date for refund, shall be counted from this date onwards.

For any discrepancies or incorrect or inappropriate information found in the application for GSTrefund, such shall be communicated to the applicant from the assessing officer using the GST form GST RFD 03 through the website.

Getting the GST refund from authorities!

In case of refund for zero rated supplies, the officer will sanction 90% of the refund due within 7 days on a provisional basis from the date of acknowledgment through GSTFORM RFD04.

The provision is that a person will not be granted a refund either where a person was prosecuted during the previous 5 years or the tax amount evasion is greater than 2.5lakhs.

The balance 10% of the refund amount shall be issued within 60 days; otherwise an interest receivable becomes accrued from the 61^st date at 6% p.a.