Goods & Services Tax (GST) Refund

GST Refund

After implementation of GST in India, it was difficult for several exporters in claiming GST refunds. Service exporters found it more troublesome with the refunds as the process is more complex than for goods exporters.
Now with us at Venture Support, the process and paperwork become easy and hassle-free.

What makes us the best choice for GST Implementation?

With a dedicated team of experts having good experience in the field of Indirect Taxation and have worked in all ERP platforms.

What is an export of services?

According to the IGST Act, export of goods means the transport of good from India to places outside India.
Export of services means the supply of services where the supplier are in India but the service recipient is outside India.

• The location of supply of service is outside India
• Payment is received after the convertible foreign exchange

Supplier and recipient of services are distinct people

Who is impacted by the rules?

All service exporters in India, which include companies providing services to parent companies, overseas.

How is refund done?

Any individual making a Zero Rated Supply can opt for any of the two below mentioned options, as per Section 16(3) of the IGST Act:

• Supply goods or services (or both) under the Letter of Undertaking (LUT) without IGST payment and claim refund of unutilized ITC
• Supply goods or services (or both) on payment of IGST and claim GST refunds for the tax paid

What is the difference between the GST refund process for a manufacturer and a service exporter?

A manufacturer's shipping bill itself is considered as an application for refund and gets a refund directly in their bank account. No separate application is needed.
But for service exporters, the process is different. They cannot get direct GST refunds in their bank account. To get a refund, then they must go through the filing of documents with the company's jurisdictional GST officer. The differentiation is made because services are intangible and there is no documentation trail for exports.

What documents are needed by a service exporter to claim GST refunds?

There is no prescribed of any process for online GST refunds, yet. The documents for claiming an offline refund are mentioned below:

• Cover Letter
• Export Invoices
• Bank Realization Certificates or Foreign Inward Remittance Certificates
• Application for Refund in the Form GST RFD 01
• Form GSTR 3B and GSTR 1
• A canceled cheque

When to file a claim for GST refunds?

The claims must be filed within the expiry of 2 years from the date of exports. For service exporters, the relevant date is either:

• Date of completion of services, or
• Date of receipt of advance.

What happens when there is a delay in approval?

Cases delayed for a period of over 60 days will get interested at the notified rate till the date of refund.

How can Venture Support help with filing GST refund?

Venture Support will assist you in the paperwork and carry out the process smoothly for you. Our team of experts would take care of the paper works while you could invest your time and effort into your business.