Accumulation of Input Tax Credit occurs when the tax paid on inputs exceeds the output tax liability. In such a case, the excess amount has to be carried forward to the next financial year, so it could be used to pay the output tax liability by the registered individual. The GST Law also permits refund ofunutilised ITC in certain cases.
Below mentioned are some of the conditions allowing the applicant to claim for getting a refund:
It should be noted that no refund of unutilised inputtax credit is allowed in cases where the goods exportedout of India are subjected to export duty. Further, norefund of input tax credit is allowed, if the supplier ofgoods or services or both avails of drawback in respect of central tax or claims refund of the integrated taxpaid on such supplies.
Any person eligible for the refund of the GST tax or the accumulated interest must claim it by sending the application electronically within two years from the date applicable by using the Form GST RFD – 01. He may also claim the available refund directly in the electronic cash ledger by filing the return according to the dates mentioned under the GST act.
In the case of UNO agencies or any other multidimensional financial organizations registered under the foreign embassies or the Consulate or the United Nations, they are also entitled to claim for the refund of tax on inward supply of goods and services. All they have to do is to apply for a refund within six months from the last date of the quarter in which these goods or services were ascertained.
Section 54(4) ofthe CGST Act, 2017 states that where the amount claimedas refund is less than two lakh rupees, it shall not benecessary for the applicant to furnish any documentary and other evidences but he may file a declaration,based on the documentary or otherevidences availablewith him, certifying that the incidence of such tax andinterest had not been passed on to any other person.
The process for refund amount exceeding 2 lakhs is explained below: -
Overall, it is easier to get the refund of tax and ITC under the GST Act.
14th May, 2021
29th April, 2021
19th March, 2021
1st February, 2021
16th December, 2020
7th December, 2020
17th December, 2019
13th November, 2019
21st August, 2019
12th August, 2019
25th June, 2019