The GST refund method was created to address situations in which organisations or individuals pay GST but are entitled to a refund due to variables such as exports, zero-rated supplies or input tax credits. This guarantees that the tax system remains equal and that taxpayers are not obliged to pay taxes on items or services that are not consumed in the United States. Different forms are utilised to check GST refund status depending on the type of GST refund request. To request a refund of IGST paid on exports (including tax payment), for example, just information in GSTR-1 and GSTR-3B is required.
Taxpayers can therefore request GST refunds they have correctly paid, which promotes accountability and transparency in the tax system.
Forms Used to Check GST Refund Status and Process
There are various forms involved in the Goods and Services Tax (GST) refund process and to check GST refund status. The ten essential GST refund forms, each serving a distinct purpose are as follows:
1. GST RFD 01: Main Refund Application
This form serves as the principal platform for submitting a refund application. It necessitates the inclusion of necessary information and supporting documents. Prior to submission on the GST Portal, a Chartered Accountant (CA) must verify the form.
2. GST RFD 02: Acknowledgment of GST RFD 01
This form serves as an automatic acknowledgment of the GST RFD-01 application.
3. GST RFD 03: Error Identification
If Form GST RFD-01 contains errors or deficiencies, this form notifies the taxpayer by detailing the inaccuracies. Corrections can be made to resubmit the application.
4. GST RFD 04: Provisional Return Form
Within seven days of submitting the refund form, this form typically provides the taxpayer with a provisional refund of 90% of the claimed amount.
5. GST RFD 05: Final Order Issuance
Upon successful validation of the refund claim, an authorised official issues a final order through this form. The designated representative must complete it within 60 days of application.
6. GST RFD 06: Adjustment of Refund
This form facilitates the deduction of the refund amount from the taxable value and is available online.
7. GST RFD 07: Refund Denial Notice
Issued when a refund application is denied, this form serves as a formal notice of denial.
8. GST RFD 08: Payment Advice or Notice
The Tax Official provides this form to the taxpayer as payment advice or notice related to refunds.
9. GST RFD 09: Interest on Delayed Refund
If a delay in refund is attributed to the tax official, this form serves as an order for the taxpayer to receive interest on late payments.
10. GST RFD 010: UN Agencies and Foreign Embassies
Specifically for UN agencies, foreign embassies and consulates, this form facilitates refunds in accordance with Section 55 of the CGST Act.
11. GST RFD-11: Letter of Undertaking (LUT)
While not a refund form, this form (LUT) is significant when exporting goods without paying the Integrated Goods and Services Tax (IGST).
How to Check GST Refund Status: Pre-Login Steps
When you want to check GST refund status on the Goods and Services Tax (GST) Portal, follow these steps:
Step 1: Visit the GST Portal
Go to the official GST Portal using a web browser.
Step 2: Access Refund Application Tracking
Once on the portal, proceed to the ‘Services’ tab. From there, select ‘Refunds’ and then choose ‘Track Application Status’.
Step 3: Enter ARN and Search
In the provided space, input the unique Application Reference Number (ARN) associated with your refund application. After entering the ARN, click on the ‘Search’ button. The system will retrieve the search results, displaying pertinent information about your refund claim.
Step 4: Access Further Details
For more comprehensive information or to take necessary actions, it is advisable to log in to your GST account. This step is essential for a deeper insight into your refund application’s progress.
How to Check GST Refund Status: Post-Login Steps
When you want to check GST refund status on the GST Portal and have logged in, follow these steps:
Step 1: Login to GST Account
Access the GST Portal and securely log in to your account using valid credentials.
Step 2: Access Refund Application Tracking
On being logged in, proceed to the ‘Services’ tab and there from the dropdown menu, select ‘Refunds’ and choose the option that says ‘Track Application Status’.
Step 3: Select Financial Year or Enter ARN
To proceed, either choose the relevant financial year for which the refund application was filed or directly enter the ARN associated with the application. The system will retrieve and display the search results accordingly.
Step 4: View Payment Advice Status
To gain insights into the progress of your refund application, look for the ‘Payment Advice Status’. This information provides valuable updates on the processing of your refund.
Step 5: Update Bank Account (if necessary)
If the bank account validation for the refund payment has not been successful, you have the option to rectify it. Click on the ‘Update Bank Account’ button located under the ‘Bank Validation Status’.
Step 6: Update Bank Account Details
Following the previous step, a page will appear where you can input the necessary bank account details. After selecting the appropriate account number, click on ‘Proceed’.
Step 7: Confirm Bank Account Update
Upon proceeding, a warning will be displayed, confirming your intention to update the bank account linked to the specific ARN. Click ‘Proceed’ to confirm the update.
Step 8: File with DSC/EVC
To finalise the bank account update, check the declaration field and select the authorised signatory. Proceed to file with either Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
Step 9: Confirm with OTP
An OTP (One-Time Password) will be sent to your registered mobile number. Enter this OTP to validate and confirm the bank account update.
Step 10: Success Notification
Once the process is complete, a message will appear at the top of the screen confirming the successful update of the bank account linked to the specific ARN. This ensures that your refund application is aligned with accurate banking details.
How to Check GST Refund Status for Exported Goods
When seeking to track the status of Integrated Goods and Services Tax (IGST) refund for goods exported, follow these comprehensive steps to check GST Refund Status:
Step 1: Log in to GST Portal
Access the official GST Portal using your valid login credentials.
Step 2: Access Refund Status for Invoice Data
Proceed to the ‘Services’ tab and from the dropdown menu, select ‘Refunds’. Then, choose ‘Track status of invoice data to be shared with ICEGATE‘.
Step 3: Select Financial Year and Month
Select the relevant financial year and the specific month for which you’ve submitted the refund application. After making the selections, click on the ‘Search’ button. The system will retrieve and display the relevant search results.
Note: If you’re a quarterly filer, remember to select the last month of the quarter for accurate results.
Step 4: View Details of Invoices
To access a detailed overview of the invoices that haven’t yet been transmitted to ICEGATE or have been rejected by ICEGATE, click on the hyperlinked number of invoices found under the ‘Count’ column.
Step 5: Download Failed Invoices
For more in-depth insights into the status of your invoices, click on ‘Download Failed Invoices’. This step will enable you to access information regarding validation errors associated with specific invoices. Subsequently, you can take the necessary corrective measures to address these errors effectively.
Restrictions on GST Refunds
GST refunds, a significant aspect of taxation, come with specific conditions that limit their applicability. These are the situations where claiming GST refunds might be constrained or declined, though regulations can vary across jurisdictions:
1. Ineligible Expenses:
Refunds can’t be claimed for costs that don’t meet tax authority criteria. Personal expenses, non-business-related costs and expenses exempt from GST won’t qualify for refunds.
2. Impact of Input Tax Credit Revisions:
Modifications to previously claimed input tax credits could affect refund eligibility. Adjustments to input tax claims or purchase prices might influence refund claims.
3. GST-Exempt Supplies:
GST refunds may be unavailable for supplies categorised as GST-exempt. Exempt items or services fall outside GST taxation, potentially excluding them from refund consideration.
4. Minimum Refund Threshold:
Tax authorities might impose a minimum refund threshold. Only refunds exceeding this threshold are processed, while smaller amounts may not qualify for refund processing.
5. Prohibited Actions:
Certain actions, such as engaging in fraudulent practices, tax evasion or illegal activities, could prohibit claiming GST refunds. Unlawful conduct may nullify refund eligibility.
Final Thoughts
Under GST, knowing how to Check GST refund status is important for taxpayers. The GST refund mechanism addresses instances where GST payments are eligible for refund due to factors like exports, zero-rated supplies or input tax credits. This maintains equity in taxation and prevents overpayment. Ten distinct forms are there for different types of refund claims, ensuring accurate submissions and transparency.
The tracking of refund applications can be done through the GST Portal. Pre-login, applicants need to visit the portal, access ‘Services,’ and select ‘Track Application Status.’ Post-login, users can access the same option under ‘Refunds’ in the ‘Services’ tab. With inputs like the Application Reference Number (ARN), details of refund claims become accessible. The process of understanding how to check GST refund status empowers taxpayers to monitor, verify and stay updated on their refund status, enhancing accountability and transparency within the taxation framework.
For more information on how to check GST refund status, connect with our experts at StartupFino.
