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16 Apr 2020Posted By: Mudit Handa


5 FAQs Regarding GST Refunds to be released amid COVID-19 Lockdown

We all know that the world is suffering due to the Novel Coronavirus disease or COVID-19. Our government has imposed a total lockdown till 3rd May 2020, which has caused severe economic stagnation in India. The normal course of business is seriously affected in India. The traders having GST registration are unable to meet their regular GST compliance. They are in serious need of funds

Recently, the government had decided to release the Income Tax Refunds up to ₹5 lakh.

In the wake of the spread of the global pandemic Novel Coronavirus aka COVID-19, the GST Department has now proposed to immediately release the GST Refunds immediately to the taxpayers having GST registration.

Here are a few important points to be understood in this regard-

 

1. Whether or not refund of GST on advance payment can be claimed? 

If GST is paid by the supplier on advance payment received for a service that got canceled subsequently, and for which GST invoice is raised, such supplier has to issue a “credit note” u/s 34 of the CGST Act.

In case there is no output GST liability against that service for which credit note is adjusted, the person having GST registration can claim GST Refund in FORM GST RFD-01, under the head: Excess payment of tax, if any. 


2. Whether or not refund of GST on goods now returned be claimed?

If GST is paid by the supplier on goods now returned to him, and for which GST invoice is raised, such supplier has to issue a “credit note” u/s 34 of the CGST Act 2017. The supplier must furnish the details of such a credit note in the GST return filing for that month.

In the event there is no output GST liability against that service for which credit note is adjusted, the person having GST registration can claim GST Refund in FORM GST RFD-01, under the head: Excess payment of tax, if any.


3. What if LUT raised on zero-rated supply, which expired on 31st March 2020?

The government had announced recently that under the GST Law that period for furnishing of any report, document, return, statement or other records that fall between the period from 20th March 2020 to 29th June 2020, has now been extended till 30th June 2020.  

Accordingly, the exporter having GST registration can continue to make supplies without IGST payment with LUT, provided the FORM GST RFD-11 for FY 2020-21 is filed on or before 30.06.2020.


4. What is the due date for payment of TDS and filing of GSTR-7?

The government has recently stated in this regard that due date for all GST compliances u/s 51 of the CGST act 2017 that falls during the period from 20th March 2020 to 29th June 2020, has now been extended till 30th June 2020.  

Accordingly, the due date for payment of TDS and filing of GSTR-7 has now been extended till 30th June 2020 for all tax deductors having GST registration.


5. How to claim a refund of GST on advance payment if no invoice raised?

In case GST is paid by the supplier on advance payment for a supply that got canceled subsequently, and for which no GST invoice was raised, he must issue a “refund voucher” u/s 31(3)(e) of the CGST Act 2017.

Accordingly, the taxpayer the person having GST registration can claim GST Refund in FORM GST RFD-01, under the head: Refund of excess payment of tax.

 

The Taxpayers can, instantly easily create their GST Tax Invoice on the interactive and fast InstaBill Software.

If you need any sort of assistance with regard to the annual GST return filing procedure or the GST refunds, please feel free to contact our business advisor at 8881-069-069.

Now you can also Download E-Startup Mobile App and Never miss the latest updates relating to your business.

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