Track GST Refund - Check Goods and Services Tax Status

A delay in refund processing can adversely affect the working capital requirements and cash flow of manufacturers. As a result, the process of application, filing, payment, and refund for GST has been developed online to ensure fast delivery and seamless access. This ease of access allows manufacturers, vendors and exporters to file their GST returns and track the status of their GST refund from the comfort of a computer screen.

There are cases when GST is paid in excess of what is GST liability stands, thus creating a situation of claiming back the additional amount. The process of claiming a refund is regulated to make sure that there is little or no confusion in the process, such as the time limit is specified at two years from the time of the relevant date.

There are multiple occasions on which the entity or individual can claim a refund:

• Dealer Exports (including deemed export) goods/services that are under a claim of refund or rebate
• Refund of tax paid on purchases made by UN bodies or Embassies
• ITC accumulation due to output being nil-rated or tax-exempt
• Finalisation of provisional assessment
• Refund of GST for International Tourists
• Refund of the accrued input tax credit on account of inverted duty structure
• Refund of SGST and CGST that are paid by considering the supply in the course of interstate commerce or trade

Once you filed a refund using RFD-01, there are following ways how one can track a GST refund online:

• Post-Login Tracking to the GST Account Here you need to check the ‘Track Application Status’ by logging into the GST Portal and going into the services tab. Thereafter, the year is to be selected as well as the bank account needs to be confirmed, upon which one can get detailed information about their status.
• Pre-Login Tracking to the GST Account In this case, the login to the GST portal is not required for getting any tracking related information. One has to visit the GST portal and click on the 'Track Application Status' and enter your ARN to get the status of your refund.
• Refund Status Tracking for IGST Paid on Exports of Goods Here, the login process has to be completed, upon which the financial year is selected as well as quarterly filers. It is then the invoice details are to be checked and entered, thereby getting all the relevant information.

There are three steps in the GST (Goods and Services Tax) refund procedure in India. The following are these phases:

• Step 1: Submission of a refund request When the taxpayer files an application for a refund, the GST refund process begins. Through the GST portal, this can be done electronically. The application must contain all relevant information, such as the amount of the requested refund, the tax year for which the refund is requested, and any necessary supporting documentation.
• Step 2: Processing of the refund application The application for a refund is processed by the GST authorities at the second step of the process. The application and any supporting materials submitted by the taxpayer will be examined by the authorities. The authorities may get in touch with the taxpayer if they need any clarification or more details. The refund sum is credited to the taxpayer's bank account when the refund application has been reviewed and accepted.
• Step 3: Approved refund The approval of the return by the GST authorities is the third and last step of the GST refund process. The authorities will now issue an order approving the repayment of the sum claimed. The taxpayer's bank account will then be credited with the refund.By logging in to the GST portal, taxpayers can keep track of the progress of their claim for a GST refund at each of these points. The portal regularly updates the status of the refund application, including any inquiries from the taxpayer for more details or clarification.

A GST refund can be claimed any time within 2 years from the relevant date, provided the refund is allowed as per GST regulations . The relevant date differs based on the circumstances of the supply of goods or services. In most cases, it could be within 2 years from the end of the financial year in which the refund claim arises or even 2 years from the payment of tax.A taxpayer can claim a refund of the GST paid on the supply of goods or services exported out of India or supplied to a unit or developer in a Special Economic Zone (SEZ) area.In case the rate of GST applied to the purchase of goods or services is higher than the rate applied to the sales of the goods or services, the taxpayer can claim a refund. ITC (Input Tax Credit) can be refunded if it has not been utilised because ITC cannot be claimed for nil or exempt supplies.
A taxpayer can claim a refund when there has been a provisional assessment and any excess amount was paid for the assessment.A taxpayer can claim a refund of GST in case of double taxation in a foreign country and in India only if a tax treaty is in place with the country.

In most cases, the refund of GST has to be processed within 60 days from the date on which the refund application was received by the authorities. The GST authorities may ask for some additional documents to be submitted. The 60 days will be calculated after the submission of all documents.In case the refund is for any supplies made to an SEZ unit or developer, the refund should be sanctioned within 15 days from receipt of refund application.

Follow the following steps to check the status of a taxpayer’s GST refund:

• Step 1: Log in to the GST portal
• Step 2: Navigate to services
• Step 3: Track application status
• Step 4: Select refund option
• Step 5: Enter ARN or filing year
• Step 6: Click search to track your refund application

A taxpayer can file an appeal with the Appellate Authority if the taxpayer’s GST refund has been rejected. Such an appeal has to be filed within 3 months from the date on which the taxpayer received the order rejecting the refund.

In most cases, the refund of GST has to be processed within 60 days from the date on which the refund application was received by the authorities. The GST authorities may ask for some additional documents to be submitted. The 60 days will be calculated after the submission of all documents.Taxpayers can reach out to the GST helpdesk or file an RTI (Right to Information) for further details on the delay.Ready to make the most of your money? Start your tax planning journey now!

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.