Provisions under Rule 89 of the Central Goods and Services Tax (CGST) Rules, 2017 relating to “Application for Refund of Tax, Interest, Penalty, Fees or any Other Amount”, are as under:
CGST Rule 89: Application for Refund of Tax, Interest, Penalty, Fees or any Other Amount (Chapter-X: Refund)
(1) Any person, except the persons covered under notification issued under section 55, claiming refund of any balance in the electronic cash ledger in accordance with the provisions of sub-section (6) of section 49 or [text inserted from 01/10/2022: refer Note 15(a)] any tax, interest, penalty, fees or any other amount paid by him, other than refund of integrated tax paid on goods exported out of India, may file subject to the provisions of rule 10B [text inserted from 01/01/2022: refer Note 12] an application electronically in FORM GST RFD 01 through the common portal, either directly or through a Facilitation Centre notified by the Commissioner:
Provided that any claim for refund relating to balance in the electronic cash ledger in accordance with the provisions of sub-section (6) of section 49 may be made through the return furnished for the relevant tax period in FORM GSTR 3 or FORM GSTR 4 or FORM GSTR 7, as the case may be: [first proviso omitted from 01/10/2022: refer Note 15(b)]
Provided further [text substituted from 01/10/2022: refer Note 15(c)] that in respect of supplies to a Special Economic Zone unit or a Special Economic Zone developer, the application for refund shall be filed by the,-
(a) supplier of goods after such goods have been admitted in full in the Special Economic Zone for authorised operations, as endorsed by the specified officer of the Zone;
(b) supplier of services along with such evidence regarding receipt of services for authorised operations as endorsed by the specified officer of the Zone:
Provided also further [text substituted from 01/10/2022: refer Note 15(d)] that in respect of supplies regarded as deemed exports, the application may be filed by,-
(a) the recipient of deemed export supplies; or
(b) the supplier of deemed export supplies in cases where the recipient does not avail of input tax credit on such supplies and furnishes an undertaking to the effect that the supplier may claim the refund. [third proviso substituted from 18/10/2017: refer Note 2]
Provided also that refund of any amount, after adjusting the tax payable by the applicant out of the advance tax deposited by him under section 27 at the time of registration, shall be claimed in the last return required to be furnished by him only after the last return required to be furnished by him has been so furnished [text substituted from 04/08/2023: refer Note 17(a)].
Explanation: For the purposes of this sub-rule, “specified officer” means a “specified officer” or an “authorised officer” as defined under rule 2 of the Special Economic Zone Rules, 2006. [explanation inserted from 05/07/2022: refer Note 14(a)]
(1A) Any person, claiming refund under section 77 of the Act of any tax paid by him, in respect of a transaction considered by him to be an intra-State supply, which is subsequently held to be an inter-State supply, may, before the expiry of a period of two years from the date of payment of the tax on the inter-State supply, file an application electronically in FORM GST RFD-01 through the common portal, either directly or through a Facilitation Centre notified by the Commissioner: [sub-rule (1A) inserted from 24/09/2021: refer Note 13]
Provided that the said application may, as regard to any payment of tax on inter-State supply before coming into force of this sub-rule, be filed before the expiry of a period of two years from the date on which this sub-rule comes into force. [sub-rule (1A) inserted from 24/09/2021: refer Note 13]
(2) The application under sub-rule (1) shall be accompanied by any of the following documentary evidences in Annexure 1 in Form GST RFD 01, as applicable, to establish that a refund is due to the applicant, namely:-
(a) the reference number of the order and a copy of the order passed by the proper officer or an appellate authority or Appellate Tribunal or court resulting in such refund or reference number of the payment of the amount specified in sub-section (6) of section 107 and sub-section (8) of section 112 claimed as refund;
(b) a statement containing the number and date of shipping bills or bills of export and the number and the date of the relevant export invoices, in a case where the refund is on account of export of goods, other than electricity [text inserted from 05/07/2022: refer Note 14(b)];
(ba) a statement containing the number and date of the export invoices, details of energy exported, tariff per unit for export of electricity as per agreement, along with the copy of statement of scheduled energy for exported electricity by Generation Plants issued by the Regional Power Committee Secretariat as a part of the Regional Energy Account (REA) under clause (nnn) of sub-regulation 1 of Regulation 2 of the Central Electricity Regulatory Commission (Indian Electricity Grid Code) Regulations, 2010 and the copy of agreement detailing the tariff per unit, in case where refund is on account of export of electricity; [clause (ba) inserted from 05/07/2022: refer Note 14(c)]
(c) a statement containing the number and date of invoices and the relevant Bank Realisation Certificates or Foreign Inward Remittance Certificates, as the case may be, in a case where the refund is on account of the export of services;
(d) a statement containing the number and date of invoices as provided in rule 46 along with the evidence regarding the endorsement specified in the second proviso to sub-rule (1) in the case of the supply of goods made to a Special Economic Zone unit or a Special Economic Zone developer;
(e) a statement containing the number and date of invoices, the evidence regarding the endorsement specified in the second proviso to sub-rule (1) and the details of payment, along with the proof thereof, made by the recipient to the supplier for authorised operations as defined under the Special Economic Zone Act, 2005, in a case where the refund is on account of supply of services made to a Special Economic Zone unit or a Special Economic Zone developer;
(f) a declaration to the effect that tax has not been collected from the Special Economic Zone unit or the Special Economic Zone developer, in a case where the refund is on account of supply of goods or services or both made to a Special Economic Zone unit or a Special Economic Zone developer; [clause (f) substituted from 01/02/2019: refer Note 10]
(g) a statement containing the number and date of invoices along with such other evidence as may be notified in this behalf, in a case where the refund is on account of deemed exports;
(h) a statement containing the number and the date of the invoices received and issued during a tax period in a case where the claim pertains to refund of any unutilised input tax credit under sub-section (3) of section 54 where the credit has accumulated on account of the rate of tax on the inputs being higher than the rate of tax on output supplies, other than nil-rated or fully exempt supplies;
(i) the reference number of the final assessment order and a copy of the said order in a case where the refund arises on account of the finalisation of provisional assessment;
(j) a statement showing the details of transactions considered as intra-State supply but which is subsequently held to be inter-State supply;
(k) a statement showing the details of the amount of claim on account of excess payment of tax and interest, if any, or any other amount paid [text inserted from 04/08/2023: refer Note 17(b)];
(ka) a statement containing the details of invoices viz. number, date, value, tax paid and details of payment, in respect of which refund is being claimed along with copy of such invoices, proof of making such payment to the supplier, the copy of agreement or registered agreement or contract, as applicable, entered with the supplier for supply of service, the letter issued by the supplier for cancellation or termination of agreement or contract for supply of service, details of payment received from the supplier against cancellation or termination of such agreement along with proof thereof, in a case where the refund is claimed by an unregistered person where the agreement or contract for supply of service has been cancelled or terminated; [clause (ka) inserted from 26/12/2022: refer Note 16(a)]
(kb) a certificate issued by the supplier to the effect that he has paid tax in respect of the invoices on which refund is being claimed by the applicant; that he has not adjusted the tax amount involved in these invoices against his tax liability by issuing credit note; and also, that he has not claimed and will not claim refund of the amount of tax involved in respect of these invoices, in a case where the refund is claimed by an unregistered person where the agreement or contract for supply of service has been cancelled or terminated; [clause (kb) inserted from 26/12/2022: refer Note 16(a)]
(l) a declaration to the effect that the incidence of tax, interest or any other amount claimed as refund has not been passed on to any other person, in a case where the amount of refund claimed does not exceed two lakh rupees:
Provided that a declaration is not required to be furnished in respect of the cases covered under clause (a) or clause (b) or clause (c) or clause (d) or clause (f) of sub-section (8) of section 54;
(m) a Certificate in Annexure 2 of FORM GST RFD 01 issued by a chartered accountant or a cost accountant to the effect that the incidence of tax, interest or any other amount claimed as refund has not been passed on to any other person, in a case where the amount of refund claimed exceeds two lakh rupees:
Provided that a certificate is not required to be furnished in respect of cases covered under clause (a) or clause (b) or clause (c) or clause (d) or clause (f) of sub-section (8) of section 54;
Provided further that a certificate is not required to be furnished in cases where refund is claimed by an unregistered person who has borne the incidence of tax. [second proviso inserted from 26/12/2022: refer Note 16(b)]
Explanation.- For the purposes of this rule-
(i) in case of refunds referred to in clause (c) of sub-section (8) of section 54, the expression “invoice” means invoice conforming to the provisions contained in section 31;
(ii) where the amount of tax has been recovered from the recipient, it shall be deemed that the incidence of tax has been passed on to the ultimate consumer.
(3) Where the application relates to refund of input tax credit, the electronic credit ledger shall be debited by the applicant by an amount equal to the refund so claimed.
(4) In the case of zero-rated supply of goods or services or both without payment of tax under bond or letter of undertaking in accordance with the provisions of sub-section (3) of section 16 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), refund of input tax credit shall be granted as per the following formula,-
Refund Amount = (Turnover of zero-rated supply of goods + Turnover of zero rated supply of services) x Net ITC ÷ Adjusted Total Turnover
(A) “Refund amount” means the maximum refund that is admissible;
(B) “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;
(C) “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 or the value which is 1.5 times the value of like goods domestically supplied by the same or, similarly placed, supplier, as declared by the supplier, whichever is less, other than the turnover of supplies in respect of which refund is claimed under sub-rules (4A) or (4B) or both; [clause (C) substituted from 23/03/2020: refer Note 11]
(D) “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, calculated in the following manner, namely:-
Zero-rated supply of services is the aggregate of the payments received during the relevant period for zero-rated supply of services and zero-rated supply of services where supply has been completed for which payment had been received in advance in any period prior to the relevant period reduced by advances received for zero-rated supply of services for which the supply of services has not been completed during the relevant period;
(E) “Adjusted Total Turnover” means the sum total of the value of-
(a) the turnover in a State or a Union territory, as defined under clause (112) of section 2, excluding the turnover of services; and
(b) the turnover of zero-rated supply of services determined in terms of clause (D) above and non-zero-rated supply of services,
excluding-
(i) the value of exempt supplies other than zero-rated supplies; and
(ii) the turnover of supplies in respect of which refund is claimed under sub-rule (4A) or sub-rule (4B) or both, if any,
during the relevant period. [clause (E) substituted from 04/09/2018: refer Note 7]
(F) “Relevant period” means the period for which the claim has been filed. [sub-rule (4) substituted from 23/10/2017: refer Note 3]
Explanation: For the purposes of this sub-rule, the value of goods exported out of India shall be taken as,-
(i) the Free on Board (FOB) value declared in the Shipping Bill or Bill of Export form, as the case may be, as per the Shipping Bill and Bill of Export (Forms) Regulations, 2017; or
(ii) the value declared in tax invoice or bill of supply,
whichever is less. [explanation inserted from 05/07/2022: refer Note 14(d)]
(4A) In the case of supplies received on which the supplier has availed the benefit of the Government of India, Ministry of Finance, notification No. 48/2017 Central Tax dated 18/10/2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1305(E) dated 18/10/2017, refund of input tax credit, availed in respect of other inputs or input services used in making zero-rated supply of goods or services or both, shall be granted.
(4B) Where the person claiming refund of unutilised input tax credit on account of zero rated supplies without payment of tax has,-
(a) received supplies on which the supplier has availed the benefit of the Government of India, Ministry of Finance, notification No. 40/2017 Central Tax (Rate), dated 23/10/2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1320(E) dated 23/10/2017 or notification No. 41/2017 Integrated Tax (Rate), dated 23/10/2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1321(E) dated 23/10/2017; or
(b) availed the benefit of notification No. 78/2017 Customs, dated 13/10/2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1272(E), dated 13/10/2017 or notification No. 79/2017 Customs, dated 13/10/2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1299(E), dated 13/10/2017,
the refund of input tax credit, availed in respect of inputs received under the said notifications for export of goods and the input tax credit availed in respect of other inputs or input services to the extent used in making such export of goods, shall be granted. [sub-rule (4B) substituted from 09/10/2018: refer Note 8]
(5) In the case of refund on account of inverted duty structure, refund of input tax credit shall be granted as per the following formula:-
Maximum Refund Amount = {(Turnover of inverted rated supply of goods and services) x Net ITC ÷ Adjusted Total Turnover} – tax payable on such inverted rated supply of goods and services {tax payable on such inverted rated supply of goods and services x (Net ITC/ ITC availed on inputs and input services)} [text substituted from 05/07/2022: refer Note 14(e)].
Explanation:- For the purposes of this sub-rule, the expressions–
(a) “Net ITC” shall mean input tax credit availed on inputs during the relevant period other than the input tax credit availed for which refund is claimed under sub-rules (4A) or (4B) or both; and
(b) “Adjusted Total turnover” and “relevant period” shall have the same meaning as assigned to them in sub-rule (4). [explanation (b) substituted from 31/12/2018: refer Note 9] / [sub-rule (5) re-substituted from 01/07/2017: refer Note 6]
Amendments History:
1. In Clause (E) of Sub rule (4), the text ‘sub-section’ substituted with the text ‘clause’ from 01/07/2017 vide Notification 17/2017. (refer Note 7)
2. Third proviso to sub-rule (1) substituted from 18/10/2017 vide Notification 47/2017. Third proviso before substitution:
“Provided also that in respect of supplies regarded as deemed exports, the application shall be filed by the recipient of deemed export supplies:”
3. Sub-rule (4) substituted & sub-rules (4A) and (4B) inserted from 23/10/2017 vide Notification 75/2017. To view the original text of sub-rule (4) before substitution, please refer Notification 10/2017. (Refer Note 4)
4. Sub-rules (4A) and (4B) substituted from 23/10/2017 vide Notification 3/2018. Sub-rules (4A) and (4B) before substitution: (refer Note 8)
“(4A) In the case of supplies received on which the supplier has availed the benefit of notification No. 48/2017 Central Tax dated 18th October, 2017, refund of input tax credit, availed in respect of other inputs or input services used in making zero-rated supply of goods or services or both, shall be granted. [sub-rule (4A) inserted from 23/10/2017: refer Note 3]
(4B) In the case of supplies received on which the supplier has availed the benefit of notification No. 40/2017 Central Tax (Rate) dated 23rd October, 2017 or notification No. 41/2017 Integrated Tax (Rate) dated 23rd October, 2017, or both, refund of input tax credit, availed in respect of inputs received under the said notifications for export of goods and the input tax credit availed in respect of other inputs or input services to the extent used in making such export of goods, shall be granted. [sub-rule (4B) inserted from 23/10/2017: refer Note 3]
5. Sub-rule (5) substituted from 18/04/2018 vide Notification 21/2018. Sub-rule (5) before substitution: (refer Note 6)
“(5) In the case of refund on account of inverted duty structure, refund of input tax credit shall be granted as per the following formula,-
Maximum Refund Amount = {(Turnover of inverted rated supply of goods) x Net ITC ÷ Adjusted Total Turnover} – tax payable on such inverted rated supply of goods
Explanation.- For the purposes of this sub rule, the expressions “Net ITC” and “Adjusted Total turnover” shall have the same meanings as assigned to them in sub-rule (4).”
6. Sub-rule (5) again substituted from 01/07/2017 vide Notification 26/2018. Sub-rule (5) before re-substitution:
“(5). In the case of refund on account of inverted duty structure, refund of input tax credit shall be granted as per the following formula:-
Maximum Refund Amount = {(Turnover of inverted rated supply of goods and services) x Net ITC ÷ Adjusted Total Turnover} – tax payable on such inverted rated supply of goods and services.
Explanation:- For the purposes of this sub-rule, the expressions-
(a) “Net ITC” shall mean input tax credit availed on inputs during the relevant period other than the input tax credit availed for which refund is claimed under sub-rules (4A) or (4B) or both; and
(b) “Adjusted Total turnover” shall have the same meaning as assigned to it in sub-rule (4).” [sub-rule (5) substituted from 18/04/2018: refer Note 5]
7. Clause (E) of sub-rule (4) substituted from 04/09/2018 vide Notification 39/2018. Clause (E) before substitution:
“(E) “Adjusted Total turnover” means the turnover in a State or a Union territory, as defined under sub-section clause (112) [text substituted from 01/07/2017: refer Note 1] of section 2, excluding the value of exempt supplies other than zero-rated supplies, during the relevant period;”
8. Sub-rule (4B) substituted from 09/10/2018 vide Notification 54/2018. Sub-rule (4B) before substitution:
“(4B) In the case of supplies received on which the supplier has availed the benefit of the Government of India, Ministry of Finance, notification No. 40/2017 Central Tax (Rate) dated the 23rd October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1320 (E) dated the 23rd October, 2017 or notification No. 41/2017 Integrated Tax (Rate) dated the 23rd October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1321(E) dated the 23rd October, 2017 or notification No. 78/2017 Customs dated the 13th October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1272(E) dated the 13th October, 2017 or notification No. 79/2017 Customs dated the 13th October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1299(E) dated the 13th October, 2017, or all of them, refund of input tax credit, availed in respect of inputs received under the said notifications for export of goods and the input tax credit availed in respect of other inputs or input services to the extent used in making such export of goods, shall be granted.” [sub-rules (4B) substituted from 23/10/2017: refer Note 4]
9. Explanation (b) to sub-rule (5) substituted from 31/12/2018 vide Notification 74/2018. Explanation (b) before substitution:
“(b) Adjusted Total turnover shall have the same meaning as assigned to it in sub-rule (4).”
10. Clause (f) of sub-rule (2) substituted from 01/02/2019 vide Notification 3/2019. Clause (f) before substitution:
“(f) a declaration to the effect that the Special Economic Zone unit or the Special Economic Zone developer has not availed the input tax credit of the tax paid by the supplier of goods or services or both, in a case where the refund is on account of supply of goods or services made to a Special Economic Zone unit or a Special Economic Zone developer;”
11. Clause (C) of sub-rule (4) substituted from 23/03/2020 vide Notification 16/2020. Clause (C) before substitution:
“(C) “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;”
12. In sub-rule (1), the text “subject to the provisions of rule 10B” inserted vide Notification 35/2021 followed with Notification 38/2021 on commencement date of 01/01/2022.
13. Sub-rule (1A) inserted from 24/09/2021 vide Notification 35/2021.
14. Amendments from 05/07/2022 vide Notification 14/2022:
(a) Explanation to sub-rule (1) inserted after fourth proviso;
(b) The text “other than electricity” inserted in clause (b) of sub-rule (2);
(c) Clause (ba) inserted in sub-rule (2);
(d) Explanation inserted in sub-rule (4);
(e) in sub-rule (5), the text “tax payable on such inverted rated supply of goods and services” substituted with the text “{tax payable on such inverted rated supply of goods and services x (Net ITC/ ITC availed on inputs and input services)}”.
15. Amendments from 01/10/2022 vide Notification 19/2022:
(a) in sub-rule (1), the text “any balance in the electronic cash ledger in accordance with the provisions of sub-section (6) of section 49 or” inserted;
(b) in sub-rule (1), the first proviso omitted;
(c) in sub-rule (1), in the second proviso, the text “Provided further that” substituted with the text “Provided that”; and
(d) in sub-rule (1), in the third proviso, the text “Provided also that”, substituted with the text “Provided further that”.
16. Amendments from 26/12/2022 vide Notification 26/2022:
(a) in sub-rule (2), clause (ka) & (kb) inserted; and
(b) in sub-rule (2), second proviso inserted in clause (m).
17. Amendments from 04/08/2023 vide Notification 38/2023:
(a) in sub-rule (1), in third proviso, the text “in the last return required to be furnished by him” substituted with the text “only after the last return required to be furnished by him has been so furnished”; and
(b) in sub-rule (2), in clause (k), the text “and interest, if any, or any other amount paid” inserted.
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| CGST Rules 2017: Last Updated 30/11/2023 |
| The CGST Rules 2017 along with the prescribed GST Forms were initially notified vide Notifications 3/2017 dated 19/06/2017 (Rule 1 to 26), 10/2017 dated 28/06/2017 (Rules 27 to 138) and 15/2017 dated 01/07/2017 (Rules 139 to 162). These Rules/ Forms were subsequently amended by CBIC through various Notifications issued from time to time. Information on this page is a Rule-wise compilation of the Amendments made by various Notifications issued by CBIC from time to time, with best possible efforts for accuracy. In any case, E&OE. For official/ updated information, please visit CBIC website. |
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