Refund Claim Under GST Law

INTRODUCTION

• A timely refund mechanism is essential in tax administration, as it facilitates trade through the release of blocked funds for working capital. GST law aims to streamline refund procedures and sanctioning of claims in a time bound manner.
• In a bid to provide relief to businesses hit by the Covid-19 pandemic, the Government is taking immediate measures to release all GST refunds to provide benefit to the business entities.
• GST law also provides for the grant of provisional refund of 90% of the total claim, in case the claim relates for refund arising on account of export of goods & Services and Supplies made to Special Economic Zone(SEZ) units and Developers. The provisional refund would be paid within 7 days after giving the acknowledgment.

SITUATIONS LEADING TO REFUND CLAIMS: Documentation The applicant needs to file Standardized and easy to understand documents like statement of invoices, Form-GSTR- 2A etc. along with the refund application form. Time Period and GST Form for Refund Application The GST law requires that every claim for refund is to be filed within 2 years from the relevant date. Services offered by MBG We at MBG, support our clients in:

1. Preparing & filing of GST refund application along with prescribed annexures and other relevant documents as per refund procedures.
2. Representing services with the GST Authorities for sanctioning of the refund.

Last Updated: 7th May 2020 This article is contributed by:  Deepak Arora Executive Director,  Indirect Taxes  

Tag: Goods & Services Tax in India, GST