The government has stipulated certain conditions and procedures for Manual Filling and processing of Refund of GST in respect of Zero Rated Supplies (i.e. Export of Goods or Services or their supply to a SEZ Developer or a SEZ Unit) under GST vide Circular No. 17/7/2017 dated 15-11-2017 which inter alia provides as below:-
A) A Registered Taxable person providing “Zero Rated Supply” i.e. exporting Goods or Services, shall be eligible to claim refund under one of the following two options:-
i) Export under Bond or Letter of Undertaking without payment of Integrated Tax and claim refund of un-utilised Input Tax Credit;
ii) Export on payment of Integrated Tax and claim refund of the tax so paid on goods and services exported.
B) Procedure for Filling Application for Refund is as below:-
| S. No. | Category of Refund | Process of Filling |
| 1 | Refund of IGST paid on export of goods | No separate application is required as shipping bill itself will be treated as application for refund. |
| 2 | Refund of IGST paid on export of services / zero rated supplies to SEZ units or SEZ developers | Printout of FORM GST RFD-01A needs to be filed manually with the jurisdictional GST officer (only at one place – Centre or State) along with relevant documentary evidences, wherever applicable. |
| 3 | Refund of unutilized input tax credit due to the accumulation of credit of tax paid on inputs or input services used in making zero-rated supplies of goods or services or both | FORM GST RFD-01A needs to be filed on the common portal. The amount of credit claimed as refund would be debited in the electronic credit ledger and proof of debit needs to be generated on the common portal. Printout of the FORM GST RFD-01A needs to be submitted before the jurisdictional GST officer along with necessary documentary evidences, wherever applicable |
C) Entry to be made in the Refund register for receipt of refund applications (by department);
D) Against complete application complete an acknowledgement in FORM GST RFD-02 shall be issued within 15 days from the date of filing of the application and entry shall be made in the Refund register;
E) All communications (issuance of deficiency memo, issuance of provisional and final refund orders, payment advice etc.) shall be done in prescribed Forms manually within the timelines prescribed in the rules;
F) Provisional refund shall be completed within 7 days as per the CGST Rules and bifurcation of the taxes to be refunded under CGST (CT) /SGST (ST) /UTGST (UT) /IGST (IT) /Cess shall be maintained in the register mandatorily. Thereafter, final order will be issued within 60 days of the date of receipt of the complete application form;
G) Amount not sanctioned and eligible for re-credit is to be recredited to the electronic credit ledger by an order made in FORM GST PMT-03. The actual credit of this amount will be done by the proper officer in FORM GST RFD-01B;
H) There after refund order issued either by the Central tax authority or the State tax/UT tax authority is communicated to the concerned counter-part tax authority within 3 days for the purpose of payment of the relevant sanctioned refund amount of tax or cess, as the case may be.