CHAPTER X

REFUND

89. Application for refund of tax, interest, penalty, fees or any other amount.-
(1)Any person, except the persons covered under notification issued under section
55,claiming refund of 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 an
application electronically in FORM GST RFD-01through the common portal, either
directly or through a Facilitation Centre notified by the Commissioner:
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:
Provided further 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:
[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] 145
Provided also 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 in the last return required to be furnished by him.
(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 sub-
section (6) of section 107 and sub-section (8) of section 112 claimed as refund;

145
Substituted vide Notf no. 47/2017- Provided also that in respect of supplies regarded as
deemed exports, the application shall be filed by the recipient of deemed export supplies

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 (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;
(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;
[(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;] 146
(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 54 where 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 ofthefinalisation 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;

146
Substituted vide Notf no. 03/2019-
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

Page 91 of 161
 (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 sub-
section (8) of section 54;
Explanation. For the purposes of this rule-
(i) in case of refunds referred to in clause (c) of sub-section (8) of section 54,

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.
[(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 other than the input tax credit availed for which refund is
claimed under sub-rules (4A) or (4B) or both;

[ -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

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 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;] 147

(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;

[ -

(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,
148

[(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 18 th 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.

[(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

147
Substituted vide Notf no. 16/2020-CT dt.23.03.2 (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, other than the turnover of supplies in respect of which refund is claimed under sub-rules
(4A) or (4B) or both;
148
Substituted vide Notf no. 39/2018-CT dt. 04.09.2018 for:

of section 2, excluding
(a) the value of exempt supplies other than zero-rated supplies and
(b) the turnover of supplies in respect of which refund is claimed under sub-rules (4A) or (4B) or both, if any,

Page 93 of 161
 3, Sub-section (i), vide number G.S.R 1320 (E), dated the 23 rd October, 2017 or
notification No. 41/2017-Integrated Tax (Rate), dated the 23 rd 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 13 th 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 13 th 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.]149]150]151

149
Substituted vide Notf no. 54/2018-CT dt. 09.10.201 (4B) In the case of supplies received 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 23 rd 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 23 rd October, 2017 or notification No. 41/2017-
Integrated Tax (Rate) dated the 23 rd 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 23 rd October, 2017 or 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 13 th 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 13 th October, 2017, or all of them, 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 expor
150
Substituted vide Notf no. 03/2018-
supplies received on which the supplier has availed the benefit of notification No. 48/2017-Central Tax dated 18 th
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.
(4B) In the case of supplies received on which the supplier has availed the benefit of notification No. 40/2017-
Central Tax (Rate) dated 23rd October, 2017 or notification No. 41/2017-Integrated Tax (Rate) dated 23 rd
October, 2017, or both, 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

151
Substituted wef 23.10.2017 vide Notf no. 75/2017-CT dt 29.12.2017 for (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;

Page 94 of 161
[(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 goodsand
services) x Net ITC÷ Adjusted Total Turnover} - tax payable on such inverted rated
supply of goods and 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

Adjusted Total and shall have the same meaning as

assigned to them in sub-rule (4).]152]153

90. Acknowledgement.- (1) Where the application relates to a claim for refund from
the electronic cash ledger, an acknowledgement in FORM GST RFD-02 shall be made
available to the applicant through the common portal electronically, clearly indicating the
date of filing of the claim for refund and the time period specified in sub-section (7) of
section 54 shall be counted from such date of filing.
(2) The application for refund, other than claim for refund from electronic cash ledger,
shall be forwarded to the proper officer who shall, within a period of fifteen days of filing
of the said application, scrutinize the application for its completeness and where the

(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 clause
(112) of section 2, excluding the value of exempt supplies other than zero-rated supplies, during the
relevant period;

152
Substituted vide Notf no. 74/2018-
meaning as assigned to it in sub-
153
Amendment made effective with effect from 01.07.2017 vide Notf no. 26/2018-CT dt. 13.06.2017
Substituted vide Notf no. 21/2018- 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) x Net ITC ÷ Adjusted Total
Turnover} - tax payable on such inverted rated supply of goods

Explanation.-
have the same meanings as assigned to them in sub-

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