GST Refund Claim by Unregistered Person: A Complete Guide

Goods and Services Tax (GST) is a comprehensive indirect tax that is levied on the supply of goods and services in India. It is payable at every stage of the supply chain, right from the manufacturer to the end consumer. GST has replaced multiple taxes such as VAT, Service Tax, Excise Duty, and others.

One of the key features of GST is the facility for claiming refunds. Refunds are of different types, such as refund of excess tax paid, refund of tax paid on exports, and others. In this article, we will focus on the refund claim process by unregistered persons under GST.

Who is an Unregistered Person under GST?

As per the GST Act, an unregistered person is someone who is not registered under GST, but is liable to pay tax under the Act. This includes individuals, businesses, and other entities who are not registered under GST, but are required to pay tax under the Act.

When can an Unregistered Person Claim Refund under GST?

An unregistered person can claim a refund under GST in the following cases:

Export of goods or services
Supply of goods or services to a SEZ unit or developer
Refund of excess tax paid under reverse charge mechanism (RCM)
Refund of accumulated Input Tax Credit (ITC) due to inverted duty structure

How to Claim Refund under GST by an Unregistered Person?

The refund claim process under GST by an unregistered person is similar to that of a registered person. The following is the step-by-step process of claiming a refund by an unregistered person:

The unregistered person should first log in to the GST portal using their GSTIN and password.
Click on the 'Refunds' tab and select the type of refund they wish to claim.
Fill in the required details such as invoice details, tax amount, and others.
Upload the necessary documents and submit the refund application online.
The GST officer will verify the refund application and may ask for additional documents or information if required.
Once the refund application is approved, the refund amount will be credited to the unregistered person's bank account.

Documents Required for Refund Claim by Unregistered Person under GST

The following documents are required for claiming a refund by an unregistered person under GST:

Invoice issued by the supplier
Proof of payment such as bank statement, challan, or receipt
Copy of shipping bill or bill of export (in case of export of goods)
Copy of tax invoice and proof of payment (in case of supply of goods or services to a SEZ unit or developer)
Copy of invoice and proof of payment (in case of refund of excess tax paid under RCM)
Statement showing the details of input tax credit and tax payable (in case of refund of accumulated ITC due to inverted duty structure)
Any other document as may be required by the GST officer

Conclusion

Unregistered persons who are liable to pay tax under GST can also claim refunds under the Act. The refund claim process for unregistered persons is similar to that of registered persons. The unregistered person has to file the refund application online on the GST portal and provide all the necessary details and documents. The GST officer will verify the application and approve it if all the requirements are met. Once the refund application is approved, the refund amount will be credited to the unregistered person's bank account.