GST Refund Services
One of the key features of GST is the concept of the input tax credit, which allows businesses to claim a credit for the GST paid on their purchases (inputs) against the GST they are required to pay on their sales (outputs). This helps to ensure that businesses are only taxed on the value they add at each stage of the supply chain, rather than on the entire value of the goods or services.
However, there may be situations where a business is entitled to claim a refund of the GST paid on its inputs. In such cases, the business can apply for a GST refund. A delayed refund could have a negative impact on the cash flow and working capital needs of manufacturers and exporters. As a result, one of the goals of the GST implementation is to make sure that the refund procedure is more efficient so that exporters and manufacturers won’t experience fund crunch because of delays.
As a GST refund service provider, we help businesses in claiming a refund of the GST (Goods and Services Tax). We can also assist businesses in tracking the status of their GST refund application and communicating with the tax authorities as needed. Our team of experienced professionals is well-versed in the GST laws and regulations and is committed to helping businesses recover the GST paid on their inputs.
The decision to choose a GST consultant in Gurgaon depends on multiple factors. We, Nitin Bhatia & Associates, a Chartered Accountant firm in Gurgaon having detailed knowledge of GST law, provide GST refund services which include;
- Retrieving the GST refund filed and evaluating the best mode of GST refund,
- Assistance in Retrieving the supporting documents,
- Preparing the refund application file,
- Filing refund application with supporting documents,
- Making representation to the concerned GST officer.
Tax administration is made more efficient by making sure the refund procedure moves along swiftly. The GST refund could be on account of excess cash balance stands in the cash ledger in case of TCS like a refund of TCS deducted by E-commerce platforms such Amazon Flipkart, Snapdeal, etc, Inverted duty structure, Input tax credit in case of exporters of goods or services or there could be other instances where you could take GST refund.
Here Are Some Situations in Which a Business May Be Eligible For a GST Refund:
- Export of goods or services: If a business exports goods or services, it can claim a refund of the GST paid on the inputs used in the production of those goods or services.
- Zero-rated supplies: Certain supplies are taxed at a rate of 0% under GST. These are known as zero-rated supplies. If a business makes zero-rated supplies, it can claim a refund of the GST paid on the inputs used in the production of those supplies.
- Supplies to SEZ (Special Economic Zone) units or developers: If a business supplies goods or services to a unit located in an SEZ or to an SEZ developer, it can claim a refund of the GST paid on the inputs used in the production of those supplies.
- Deemed exports: Certain supplies are treated as deemed exports under GST. If a business makes such supplies, it can claim a refund of the GST paid on the inputs used in the production of those supplies.
- Payment of wrong tax: Caused by incorrect application of the place of supply provisions, it is possible under GST for the taxable person to pay integrated tax instead of central tax plus state tax or vice versa. In such circumstances, interest will not be ascertained while the effective tax payment is being made, and a refund claim for the incorrect tax paid is made available.
- Refunds to casual/non-resident Taxable Persons: A non-resident or casual taxable person is required to pay tax in advance at the time of registration. Due to the possibility that the tax paid in advance may have exceeded the actual tax liability on the supplies made by these individuals during the registration period, a GST refund may be due to them at the end of the registration period. The GST law allows refunds to such taxable non-resident and casual taxable persons as well. However, unless that person has filed all of the returns that were due during the time their registration was in effect, the amount of excess advance tax will not be refunded. Refunds won’t be given until this compliance has been met.
- Refund claims in respect of inverted duty structure: The supplier is eligible to receive a GST refund when the credit has accumulated as a result of the tax rate on inputs being higher than the tax rate on output supplies (other than nil-rated or fully exempt supplies), excluding supplies of goods or services or both as may be announced by the government.
Procedure to Claim GST Refund
To claim a GST refund, a business must follow the following procedure:
- Register for GST: The first step in claiming a GST refund is to register for GST. This involves obtaining a GSTIN (GST Identification Number) from the tax authorities. To register for GST, a business must submit an application along with the required documents, such as proof of business registration, PAN (Permanent Account Number) card, and bank details.
- File GST returns: A business must file GST returns regularly to be eligible to claim a GST refund. GST returns must be filed online using the GST Portal, and must include details of the business’s sales, purchases, and GST paid and collected.
- Claim input tax credit: To claim a GST refund, a business must have paid GST on its purchases (inputs) and must not have availed of input tax credit on those inputs. Therefore, it is important for a business to claim input tax credit on its GST returns as and when it becomes eligible to do so.
- File a GST refund application: To claim a GST refund, a business must file a GST refund application with the relevant tax authorities. The application must be filed online using the GST Portal, and must include details of the GST paid on the inputs for which a refund is being claimed.
- Submit supporting documents: Along with the GST refund application, a business must also submit the required supporting documents. These may include invoices, bills of supply, shipping bills, and other documents as required.
- Seeking professional assistance: Seeking the help of a professional such as chartered accountant in Gurgaon or GST refund service provider who can make the process of claiming a GST refund easier and more efficient. A GST refund consultant can assist with preparing and filing the GST refund application, tracking the status of the application, and communicating with the tax authorities as needed.
- Wait for the refund: After the GST refund application has been filed, the tax authorities will review it and, if approved, will issue a refund of the GST paid. The refund will be credited to the business’s bank account.
Documents to Claim GST Refund
To claim a GST (Goods and Services Tax) refund, a business must provide certain proof and supporting documents to the relevant tax authorities. The specific documents required may vary depending on the circumstances of the refund claim, but generally, the following documents may be required:
- Invoices: Invoices are essential documents that provide evidence of the GST paid on the inputs for which a refund is being claimed. Invoices should be issued by the supplier of the inputs and should include details such as the GSTIN (GST Identification Number) of the supplier, the description of the goods or services supplied, the quantity and value of the goods or services, and the GST charged.
- Bills of supply: If a business is making zero-rated supplies or supplies to a unit located in a Special Economic Zone (SEZ) or to a SEZ developer, it may be required to provide bills of supply as proof of the supplies made. A bill of supply is a document issued by the supplier of the goods or services that includes details such as the GSTIN of the supplier, the description of the goods or services supplied, the quantity and value of the goods or services, and the GST charged.
- Shipping bills: If a business is exporting goods, it may be required to provide shipping bills as proof of the export. A shipping bill is a document issued by the customs authorities that include details such as the description of the goods exported, the quantity and value of the goods, and the GST paid on the goods.
- Other documents: Depending on the circumstances of the refund claim, the tax authorities may also require other documents as proof. These may include documents such as proof of business registration, PAN (Permanent Account Number) card, bank details, and any other documents specified by the tax authorities.
It is important to note that GST refunds are subject to certain conditions and limitations. As a GST refund service provider, we offer expert guidance and assistance to businesses in claiming a refund of the GST paid on their inputs. We can help businesses prepare and file their GST refund application, and assist in tracking the status of the application and communicating with the tax authorities. Our team of experienced professionals is committed to helping businesses recover the GST paid on their inputs.
You can contact us at firstname.lastname@example.org if you have questions about how to obtain your GST refund or if the procedure seems too difficult and complicated for you. We will help you quickly obtain your refund and take care of any associated problems.