Manual – Refund on Account of Supplies made to SEZ Unit/ SEZ Developer (Without Payment of Tax)

How can I file for refund on account of supplies made to SEZ unit / SEZ developer (without payment of tax)?

To file for refund on Account of Supplies Made to SEZ Unit / SEZ Developer (without payment of tax) on the GST Portal, perform following steps:

  1. Access the https://www.gst.gov.in/ URL. The GST Home page is displayed.
  2. Click theServices> Refunds > Application for Refund command.

  1. TheSelect the refund typepage is displayed. Select the On account of Supplies to SEZ unit/ SEZ developer (without payment of tax) option.
  2. Select theFinancial Yearand Tax Period for which application has to be filed from the drop-down list.
  3. Click theCREATEbutton.

  1. It is mandatory to file refund applications chronologically for all previous tax periods starting from registration date. In case no refund is to be filed for previous periods, you need to file NIL refund application. You will be prompted to file NIL refund, select Yes, proceed and file NIL Refund applications for all previous periods using DSC or EVC.
  2. Once you have filed, you won’t be able for file refund application for the periods for which NIL refund application has been filed.

 

  1. If Form GSTR-1 and Form GSTR-3B are filed for all the selected tax periods for which refund is intended to be claimed, theRefund of ITC on account of supplies made to SEZ unit/ SEZ developer (without payment of tax) page is displayed.

Recommended : http://www.priha.co/refund-of-itc-on-account-of-exports-without-payment-of-tax/

Recommended : http://www.priha.co/refund-on-account-of-supplies-made-to-sez-unit-sez-developer-with-payment-of-tax/

First you need to download the offline utility, upload details of supplies of Goods and/or services made to SEZ unit/SEZ developer and then file refund of ITC an account of supplies made to SEZ unit/ SEZ developer (without payment of tax).

 

 

Download Offline Utility

 

  1. Click theDownload Offline Utilitylink. You will be prompted for confirmation. Click the Proceed button to continue.

 

  1. The zip file is downloaded. Right click on the zip file and selectExtract Allto unzip the downloaded file.

 

  1. Open the excel sheet.

 

  1. Enter theGSTINand From and To Return Period in mmyyyy format.

 

  1. Enter the Sr. No., Invoice Details, Goods/ Services, Shipping bill/ Bill of export/ Endorsed Invoice no. details.

Note: Shipping Bill Number can be of 3 to 7 numeric digit.

 

  1. Click theValidate & Calculatebutton.

 

  1. The total number of records in the sheet is displayed. Click theOKbutton.

In case of Error:

 

16.1. Error is displayed in the Error column. Rectify the error.

 

16.2. Click the Validate & Calculate button.

 

16.3. Notice that the Error column is blank now after rectification.

  1. 17. Click theCreate File To Upload

  1. Browse the location where you want to save the file.
  2. Enter the name of the file and click theSAVEbutton.

  1. A success message is displayed that file is created and you can now proceed to upload the file on the GST Portal. Click theOKbutton.

 

Upload Details of supplies made to SEZ Unit/ SEZ Developer

 

  1. Click the linkClick to upload the details of supplies made to SEZ/ SEZ Developer.

 

  1. Click theCLICK HERE TO UPLOADbutton.

 

  1. Browse the location where you saved the JSON file. Select the file and click theOpenbutton.

24.1. A success message is displayed that Statement has been uploaded successfully. You can click the Download Unique Invoices link to view the invoices that has been uploaded successfully.

24.2. Valid invoices are displayed.

  1. 25.Select the Declaration checkbox.

  1. Click thePROCEEDbutton.

  1. Click theVALIDATE STATEMENTbutton.

 

28.1.In case any statement is validated with error, click the Download Invalid Invoice link.

 

28.2 Invalid invoice excel sheet is downloaded on your machine. Open the invalid invoice excel sheet. Error details are displayed.

 

28.3. Click the DELETE STATEMENT button. Rectify the error in the JSON file and upload on the GST Portal again.

 

  1. Once the statement is validated, you will get a confirmation message on screen that the statement has been submitted successfully for validation. Click theBACKbutton.

 

Refund of ITC on account of supplies made to SEZ unit/ SEZ developer (without payment of tax)

  1. In the TableComputation of Refund to be claimed Statement-5A [rule 89(4)]: –

 

Note:

  1. Adjusted Total Turnover” means the turnover in a State or a Union territory, as defined under clause (112) of section 2, excluding –

(a) the value of exempt supplies other than zero-rated supplies and

(b) the turnover of supplies in respect of which refund is claimed under sub-rules (4A) or (4B) or both, if any, during the relevant period

  1. “Turnover of zero-rated supply of goods” means the value of zero-rated supply of goods made during the relevant period without payment of tax under bond or letter of undertaking, other than the turnover of supplies in respect of which refund is claimed under sub-rules (4A) or (4B) or both.
  2. “Turnover of zero-rated supply of services” means the value of zero-rated supply of services made without payment of tax under bond or letter of undertaking.
  3. Net Input Tax Credit: Net ITC” means input tax credit availed on inputs and input services during the relevant period other than the input tax credit availed for which refund is claimed under sub-rules (4A) or (4B) or both.

In Column (1) of Turnover of zero rated supply of goods and services (1), enter the aggregate turnover of zero rated supply of goods and services i.e. Integrated Tax, Central Tax, State/ UT Tax and Cess. Turn-over of Zero-rated supply may be taken from the column 3.1 (b) of the FORM-GSTR-3B.

In Column (2) of Adjusted total turnover, enter the aggregate adjusted total turnover i.e. Integrated Tax, Central Tax, State/ UT Tax and Cess.

In Column (3) of Net input tax credit, the Net ITC in table “Computation of Refund to be claimed” is auto-populated by the system and can be edited downwards considering net ITC availed for the heads of CGST/SGST/IGST together in the return for the respective tax period for which refund is claimed excluding any ITC related to Capital Goods, transition ITC that may have been posted in the ledger on account of transition ITC claims in the said period as well as refund claimed under Rule 89(4A) (deemed export) and/ or (4B) (merchant exporter or export).

Refund amount will be determined by using the formulae given in rule 89(4) of the CGST/SGST/UTGST Rules which is as under:

Refund Amount= (Turn-over of Zero-rated supply of Goods + Turn-over of Zero-rated supply of services) X Net ITC/Adjusted Total Turn-over.

After filling the appropriate figures in the table (Statement 5A), the amount of refund will get auto populated in the column (4) “Maximum refund amount to be claimed”.

 

  1. In the TableAmount Eligible for Refund: –

The values as computed in the Table Amount Eligible for Refund table:

  • In Column “Balance in Electronic Credit ledger at the end of tax period for which refund is claimed (balance remaining after return for this period is filed) (1)” amount is reflecting from ITC ledger as the total of ITC availed as at the end of the period for which refund is claimed, for which Refund is being claimed.
  • In Column “Balance in Electronic Credit ledger at the time of filing of refund application (2)” amount is reflecting from ITC ledger as on the date of filing refund application.

Enter the “Refund Amount to be claimed’ which should be lowest from the table column of the below three:

  • Formulae value of Refund Amount as per Statement 5A
  • ITC Ledger Balance as on date of filing refund application
  • ITC Ledger balance availed and available at the end of the tax period for which refund is claimed

  1. Select the BankAccount Numberfrom the drop-down list.

33. In case you have submitted the bond/ undertaking (Form GST RFD-11), select Yes or else select No. In case of Yes, enter the Reference Number of RFD-11 submission.

  1. Click theSAVEbutton.

Note: To view your saved application, navigate to Services > Refunds > My Saved/Filed Application command.

Application can be saved at any stage of completion for a maximum time period of 15 days. If the same is not filed within 15 days, the saved draft will be purged from the GST database.

 

  1. Click thePREVIEWbutton to download the form in PDF format.
  2. Form is downloaded in the PDF format.
  3. Select theDeclarationand Undertaking checkbox.
  4. Click theSUBMITbutton.

 

  1. Select theDeclarationcheckbox.
  2. In theName of Authorized Signatorydrop-down list, select the name of authorized signatory.
  3. Click theFILE WITH DSCor FILE WITH EVC button.

In Case of DSC:

 

  1. Click thePROCEEDbutton.

  1. Select the certificate and click theSIGNbutton.

In Case of EVC:

  1. Enter the OTP sent to email and mobile number of the Authorized Signatory registered at the GST Portal and click theVERIFYbutton.

  1. The success message is displayed and status is changed to Submitted.Application Reference Number (ARN)receipt is downloaded and also sent on your e-mail address and mobile phone number. Click the PDF to open the receipt.

Notes:

  • The system generates an ARN and displays it in a confirmation message, indicating that the refund application has been successfully filed.
  • GST Portal sends the ARN to registered e-mail ID and mobile number of the registered taxpayer.
  • GST Portal also makes a Debit entry in the Electronic Credit Ledger for the amount claimed as refund.
  • Filed applications (ARNs) can be downloaded as PDF documents using the My Saved / Filed Applications option under Refunds.
  • Filed applications can be tracked using the Track Application Status option under Refunds.
  • Once the ARN is generated on filing of form refund application in RFD-01A, the refund application along with the documents attached while filing the form would be assigned to Refund Processing Officer for processing the refund. Tax payer can track the status of refund application using track status functionality.
  • The disbursement is made once the concerned Tax Official processes the refund application.

  1. Navigate to ServicesLedgersElectronic Credit Ledger to view the debit entry in the Electronic Credit Ledger for the amount claimed as refund.

  1. The ElectronicCreditLedger is displayed. Click the Electronic Credit Ledger link.

  1. Select the Fromand Todate using the calendar to select the period for which you want to view the transactions of Electronic Credit Ledger.
  2. Click theGObutton.

The Electronic Credit Ledger details are displayed. Notice the debit entry in the Electronic Credit Ledger for the amount claimed as refund.

FAQs – Refund on Account of Supplies made to SEZ Unit/ SEZ Developer (Without Payment of Tax)

Recommended : http://www.priha.co/refund-of-itc-on-account-of-exports-without-payment-of-tax/

1. How can I get my refund of ITC on account of supplies made to SEZ Unit/ SEZ Developer (Without Payment of Tax)?

You may comply with the activities as specified below:

1. You have to file refund application in Form RFD – 01A at GST Portal and you can file for refund of multiple tax period in one refund application.

2. You have to provide turnover of Zero-Rated supplies to SEZ unit and SEZ Developer and Adjusted Total Turnover for the period refund is sought for.

3. The Net ITC auto populated can be edited downwards. The Net ITC in table “Computation of Refund to be claimed” is auto-populated by the system and can be edited downwards considering net ITC availed for the heads of CGST/SGST/IGST together and Cess in the return for the respective tax period for which refund is claimed excluding any ITC related to Capital Goods, transition ITC that may have been posted in the ledger on account of transition ITC claims in the said period as well as refund claimed under Rule 89(4A) (deemed export) and/ or (4B) (merchant exporter or export).

4. System will auto calculate the eligible refund amount and post in the last column of table “Maximum refund amount to be claimed.”

5. The system also indicates balances in each head of the taxpayer’s Electronic Credit ledger at the end of the tax period (balance amount remaining after the return for the said period is filed) and the balance when he is filing the refund application.

6. The taxpayer has to enter the amount of refund claimed in such a manner that the amount in each head is equal to or lower than the lowest balance in each head of Electronic Credit Ledger indicated above and the total refund should not exceed the “Maximum Refund that can be claimed”.

7. Applicant has to be careful while furnishing values in Form RFD -01A, as no rectification in application is allowed after its filling.

8. Applicant has to ensure that he has filed the return GSTR-1 and GSTR- 3B for the all the tax periods pertaining to which Refund is claimed.

9. Balance in ITC ledger should be sufficient in each head (IGST/CGST/SGST/UTGST/CESS).

10. He should have supplied goods/service on account of which he is claiming ITC refund. In case of Supply of Goods, tax payer shall provide Shipping Bill and EGM details.

11. Once Application Reference Number (ARN) is generated, refund application filed shall be assigned to Jurisdictional Refund Processing Officer for processing. Refund applicant can track the status of refund application filed using “Track Application status” functionality on the portal.

Note: Form RFD 01A for a period can be filed only after filing of valid Form GSTR-1 and Form GSTR-3B for that particular Return Period.

12. The Invoice details given under Form GSTR – 1/ Table 6B of Form GSTR – 1 and given under refund statement should be same.

2. What are the relied upon documents which I have to upload with refund application for ITC refund?

You have to upload documents as are required to be filed along with Form RFD-01A as notified under CGST Rules or Circulars issued in the matter and other such documents the refund sanctioning authority may require. Statement 5 shall be uploaded by taxpayer for claiming refund having details of invoices.

3. What are the preconditions for filing a refund application on account of supplies made to SEZ unit / SEZ developer (without payment of tax)?

The following conditions must be met for being eligible to file the refund application in form GST RFD-01A to claim refund on account of supplies made to SEZ unit / SEZ developer (without payment of tax):

  1. The Taxpayer is registered with GST Portal and holds an active GSTIN during the period for which refund is being applied for.
  2. Form GSTR-1 and Form GSTR-3B must have been filed for all the tax periods for which refund is intended to be claimed.
  3. The taxpayer has made supplies to SEZ unit/ SEZ Developer.

4. Which amounts are eligible for refund on account of supplies made to SEZ unit / SEZ developer (without payment of tax)?

Refund application on account of supplies made to SEZ unit / SEZ developer (without payment of tax) can be filed for the amount that is lowest of the following:

1.     Balance in Electronic Credit Ledger at the end of the tax period/periods for which refund is claimed (balance remaining after return for that period/periods filed)

2.     Balance in Electronic Credit ledger at the time of filing of refund application

3.     Eligible amount calculated based on formula, calculated as “(((Turnover of Zero Rated Supply of Goods and Services) x (Net Input Tax Credit)) ÷ Adjusted Total Turnover)

Note: For more details, please refer the User Manual that provides step-by-step instructions on filling-out form RFD-01A and filing the refund application for claim on account of supplies made to SEZ unit / SEZ developer (without payment of tax).

5. To whom should I file my application with?

The taxpayer shall file the refund application in Form RFD-01A on GST portal. After filing, refund application shall be assigned to Refund Processing Officer and refund applicant can track the status of refund application.

6. Can I file for multiple tax period in one refund application?

Yes, you can file for refund of multiple tax period in one refund application.

7. Can I file nil refund for multiple tax period in one refund application?

Yes, you can file for nil refund for multiple tax period in one refund application.

8. Can nil period of refund be combined with the period in which there is refund in one application?

Yes, nil period of refund be combined with the period in which there is refund in one application.

 Let us suppose you want to file tax refund from Apr-Sep month, where you want to file nil refund for May-Jun month. There are two ways in which you can file your refund application.

  1. You can select Tax Period as Apr-Apr and file normal refund application. You can then select May-Jun and file Nil refund application. And, select Jul-Sep and file normal refund application.
  2. You can select Tax Period as Apr-Sep and file normal refund application.

9. Can I save the application for refund?

Application for refund can be saved at any stage of completion for a maximum time period of 15 days. If the same is not filed within 15 days, the saved draft will be purged from the GST database.

Note: To view your saved application, navigate to Services > Refunds > My Saved/Filed Applications option.

10. Whether I would be able to file refund application without uploading statement of invoices?

No. Statement of invoices is mandatory for filing refund application.

The statement uploaded by taxpayer would be validated with the data already declared by the taxpayer while filing return. Only after this data is validated, the taxpayer would be able to file the refund application.

11. From where can I download the utility to upload the statement?

Navigate to Services > Refunds > Application for Refund > Select the refund type Download Offline Utility link.

12. What is the purpose of Download Offline Utility to upload the statement?

Download Offline Utility is provided to enter and upload details in Statement 5 of invoices against which refund is being claimed.

13. What is the significance of VALIDATE STATEMENT button?

Validate Statement button is used to validate invoice data provided by the taxpayer from Form GSTR-1 declared data.

14. Can I change data after clicking the VALIDATE STATEMENT button?

Yes, you can change data even after you have validated the uploaded statement. If you want to update/delete the statement, then you would have to first delete the whole statement by clicking the DELETE STATEMENT button and upload a new statement of invoices again if needed.

15. What is the purpose of Download Unique Invoices?

To download the invoices that have been uploaded successfully on the GST Portal, you can click on the hyperlink Download Unique Invoices.

16. What is the purpose of Download Invalid Invoices?

To download the invoices that have not been uploaded successfully along with error details on the GST Portal, you can click on the hyperlink Download Invalid Invoices.

17. I am getting a message “validated with error” while uploading statement on the GST Portal. What do I do?

In case any statement is validated with error, click the Download Invalid Invoice link. Open the invalid invoice excel sheet. Error details are displayed. You can only rectify the error details in the JSON file and upload on the GST Portal again by clicking the CLICK HERE TO UPLOAD button.

18. I have uploaded statement which has been validated on the GST Portal. I need to upload a new statement of invoices again. What do I do?

If you don’t have any error and statement has been validated, and then you want to update/delete the statement, then you would have to first delete the whole statement by clicking the DELETE STATEMENT button and upload a new statement of invoices again if needed.

19. I am getting error that “Future date is not allowed for Invoice Document” while uploading statement on the GST Portal using the offline utility even if I am providing correct invoice dates. Why?

For offline utilities, there is no server date available and hence the utility will have to depend on local system date for validation. In case your system has incorrect date, such issues can come.

20. Can I preview the refund application before filing?

Yes, you can preview the refund application in PDF format to check for any inconsistency or discrepancy before filing on the GST Portal.

21. What is the purpose of giving declaration while filing refund application on account of supplies made to SEZ unit / SEZ developer (without payment of tax)?

The purpose of this declaration is to certify that the SEZ unit/ SEZ developer has not availed ITC of the tax paid by the applicant, which is covered under this refund claim.

22. How can I track the status of application for refund?

To track your filed application, navigate to Services > Refunds > Track Application Status option.

23. What is ARN?

Once the refund application is filed, Application Reference Number (ARN) receipt would be generated and ARN would be sent to your registered e-mail address and mobile number.

24. Where can I download my filed refund application?

Navigate to Services > User Services > My Applications link to download your filled/filed refund application.

25. What happens when refund application on account of supplies made to SEZ unit/ SEZ developer (without payment of tax) is filed?

• GST Portal generates an ARN and displays it in a confirmation message, indicating that the refund application has been successfully filed.

• GST Portal sends the ARN to the e-mail to the registered email ID and a SMS to the mobile number of the registered taxpayer.

• GST Portal also makes a Debit entry in the Electronic Credit Ledger for the amount claimed as refund.

26. Can I view the details of refund claimed in Electronic Credit Ledger?

Yes, you can view the debit entry in the Electronic Credit Ledger for the amount claimed as refund.

27. When / how will the refund Form RFD-01A be processed?

Once the ARN is generated on filing of refund application in Form RFD-01A, the refund application along with the documents attached while filing the form would be assigned to Refund Processing Officer for processing the refund. Tax payer can track the status of refund application using track status functionality.

The application will be processed and refund will be disbursed by the Jurisdictional Authority after scrutiny.

Recommended : http://www.priha.co/refund-of-itc-on-account-of-exports-without-payment-of-tax/

Recommended : http://www.priha.co/refund-on-account-of-supplies-made-to-sez-unit-sez-developer-with-payment-of-tax/

 

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