Manner of filing application for GST refund by unregistered persons

The GST regime in India has made it mandatory for businesses to register themselves under the GST Act, and only registered businesses can claim GST refunds. However, there are scenarios where unregistered persons can claim GST refunds, subject to certain conditions.

The process of claiming GST refunds by unregistered persons is different from that of registered persons. In this article, we will discuss the manner of filing the application for GST refunds by unregistered persons.

Who is an unregistered person in GST?

An unregistered person refers to a person who is not registered under the GST Act. An unregistered person can include a casual taxable person, an individual dealing in exempted goods or services, or a person who is not liable to register under the GST Act.

When can an unregistered person claim GST refunds?

An unregistered person can claim a refund of GST paid on the supply of goods or services made to him if he satisfies the following conditions:

The goods or services should be used for the purpose of business or commerce.
The supplier of the goods or services should not have claimed any input tax credit (ITC) on such supply.
The unregistered person should not be liable to be registered under the GST Act.

How to file an application for GST refund by an unregistered person?

The application for claiming a refund of GST by an unregistered person can be filed through FORM GST RFD-01A. The application can be filed by the unregistered person himself or through an authorized representative. The following steps need to be followed while filing the application for GST refund:

Step 1: Login to the GST portal

The applicant needs to login to the GST portal using his PAN number and password.

Step 2: Click on the ‘Services’ tab

After logging in, the applicant needs to click on the ‘Services’ tab and select ‘Refunds’ from the drop-down menu.

Step 3: Select ‘Application for Refund’

Under the ‘Refunds’ section, the applicant needs to select ‘Application for Refund’ and proceed.

Step 4: Select ‘Refund of Unutilized Input Tax Credit’

The applicant needs to select ‘Refund of Unutilized Input Tax Credit’ as the type of refund and proceed.

Step 5: Fill in the required details in FORM GST RFD-01A

The applicant needs to fill in the required details in FORM GST RFD-01A, such as the GSTIN of the supplier, details of the goods or services for which the refund is claimed, the amount of refund claimed, etc.

Step 6: Upload supporting documents

The applicant needs to upload the supporting documents, such as the invoice, receipt, bank statement, etc., along with the application for GST refund.

Step 7: Submit the application

After filling in all the required details and uploading the supporting documents, the applicant needs to submit the application for GST refund.

Conclusion

Unregistered persons can claim GST refunds subject to certain conditions. The procedure for filing an application for GST refund by an unregistered person is different from that of a registered person. The application can be filed through FORM GST RFD-01A, and the applicant needs to follow the above mentioned steps for filing the application. It is advisable to seek professional help while filing the application for GST refund by an unregistered person.