Under GST, unregistered persons can also claim refunds for the tax paid by them. However, the refund is allowed only on the tax paid on goods or services exported out of India. This means that if an unregistered person exports goods or services, they can claim a refund on the GST paid on such goods or services.
To claim the refund, the unregistered person needs to file a refund application in Form GST RFD-01 with the concerned tax authorities. The application must be filed within two years from the date on which the tax was paid.
The application must be accompanied by the necessary supporting documents, such as copies of the invoice, export documents, bank statement, and so on. Once the application is filed, the tax authorities will verify the same and process the refund.
It is important to note that the refund process for unregistered persons can take longer as the tax authorities need to ensure that the refund claim is genuine and the person is eligible for the refund.
If you are an unregistered person under the Goods and Services Tax (GST) system in your country, it means that you are not required to obtain a GST registration number and do not have to collect or remit GST on the goods or services you supply.
In general, GST is a value-added tax that is charged on most goods and services sold for domestic consumption. GST is collected by registered businesses on behalf of the government, and it is a key source of revenue for governments around the world.
However, if you are an unregistered person and you purchase goods or services from a registered supplier, you may still be required to pay GST on your purchases. This is known as reverse charge mechanism (RCM). In RCM, the liability to pay GST shifts from the supplier to the recipient.
It's important to check the GST rules and regulations in your country to understand your rights and responsibilities as an unregistered person under the GST system.
Sure, please find below some frequently asked questions on GST Refund:
1. What is GST Refund?
GST Refund is the process of claiming the refund of the GST paid on the inward supplies of goods or services, which are exported or used for making zero-rated supplies.
2. Who can claim the GST Refund?
Any person registered under GST can claim a refund of GST paid on inward supplies of goods or services that are exported or used for making zero-rated supplies.
3. Can an unregistered person claim GST Refund?
An unregistered person cannot claim a GST Refund.
4. What are the pre-conditions for claiming a GST Refund?
1. The pre-conditions for claiming a GST Refund are:
2. The taxpayer should have a valid GSTIN number.
3. The taxpayer should have filed all the GST returns required to be filed before applying for the refund.
4. The taxpayer should not have any pending tax liabilities or demand orders.
5. What is the time limit for claiming GST Refund?
The time limit for claiming GST Refund is 2 years from the relevant date.
6. What is the relevant date for claiming GST Refund?
1. The relevant date for claiming GST Refund is different for different types of refunds. For example:
2. For export of goods, the relevant date is the date of export of goods.
3. For export of services, the relevant date is the date of receipt of payment in convertible foreign exchange.
4. For refund of unutilized input tax credit (ITC), the relevant date is the end of the financial year in which the credit has accumulated.
7. What is the procedure for claiming GST Refund?
1. The procedure for claiming GST Refund is:
2. File the refund application in Form GST RFD-01 on the GST portal.
3. Upload all the supporting documents required for the refund claim.
4. Wait for the refund to be processed by the GST authorities.
8. Can a taxpayer track the status of GST Refund application?
Yes, a taxpayer can track the status of the GST Refund application on the GST portal.
9. What are the common reasons for rejection of GST Refund application?
1. The common reasons for rejection of GST Refund application are:
2. Incorrect bank account details.
3. Incorrect GSTIN or invoice details.
4. Mismatch between the GST returns and refund application.
5. Failure to submit all the supporting documents required for the refund claim.
Income From Salary
ITC on Transport/Cab services to employees under GST