On the date of implementation of GST there was a fear in the mind of every business man which is “fear of working capital blockage” as tax will be leviable on supply rather sales and supply includes stock transfer also. As tax has to be paid on stock transfers also which will definitely lead to accumulation of input credit resulting in working capital blockage. Considering the concern of taxpayers, GST Act has prescribed conditions where refund can be claimed. Refund under GST can be claimed for tax paid, cash lying in cash ledger etc. However to claim refund under GST taxpayers has to file refund application in prescribed period of time i.e. within relevant date
Section 54 of CGST Act has prescribed the definition of relevant date and such relevant date plays a crucial role in claiming GST refund. Claiming refund will depend upon whether such application was filed within relevant date or not. There are various cases for which there are different relevant date has been prescribed.
Here is the list of relevant date for refund under different scenario:
- In Case of Export of Goods:
- Goods exported by Air or Sea: Date on which aircraft or Ship leaves India
- Goods exported through Land: Date on which goods passes the frontier
- Goods exported by post: Date of Dispatch of goods by post office
- In Case of Export of Services:
- Where Payment received after completion of Services: Date of receipt of convertible foreign exchange
- Where Payment received prior to completion of Service and Issue of Invoice: Date of issue of Invoice
- In Case of Deemed Export: Date on which return relating to such export filed
- Refund arises as a consequence of any court order, decree, director of any appellate authority etc: Date of communication of such order, decree etc,
- Refund of Un-utilised Input Credit for Zero rated Supply and Inverted Duty Structure: End of financial year in which such refund arise
- In case of tax paid provisionally: Date on which tax adjustment made after final assessment
- Where refund is claimed by any person other than supplier: Date of receipt of goods or services
However there is time limit to claim refund from CASH E-ledger.
Relevancy of Relevant Date: if any refund application is not filed within the relevant date then such application shall be treated time barred and GST department can deny to entertain such application.
Refund: Refund includes refund of tax paid on zero-rated supplies of goods or services or both or on inputs or input services used in making such zero-rated supplies, or refund of tax on the supply of goods regarded as deemed exports, or refund of un-utilised input tax credit as provided under sub-section.
India: “India” means the territory of India as referred to in article 1 of the Constitution, its territorial waters, seabed and sub-soil underlying such waters, continental shelf, exclusive economic zone or any other maritime zone as referred to in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976, and the air space above its territory and territorial waters