How to get GST refund after cancellation of GST registration
Goods and Services Tax (GST) is an indirect tax which has been implemented in India from 1st July, 2017. Under the GST regime, businesses /organizations can claim Input Tax Credit (ITC) on the GST paid on their inputs. This ITC can be used to offset GST payable on their outputs.
In some cases, there may be a balance of ITC in the Electronic Credit Ledger (ECL) of a business which they cannot utilize. This could be for a number of reasons, such as a business with zero-rated or exempt supplies, or a business with an inverted tax structure.
If a business has ITC balance in ECL, they can apply for refund of this amount. Refund application can be filed online through the GST portal.
Refund of amount shown in GST credit ledger before cancellation of GST Registration online.
A business can claim refund of the amount reflected in its GST credit ledger even before cancellation of its GST registration. However, in order to do so, certain conditions must be met:
- The business must have filed all required GST returns.
- The business must not have committed any serious violation of GST laws.
- The business must not have availed any ineligible input tax credit.
If these conditions are met, the business can file a refund application in FORM GST RFD-01. The application should be filed within two years from the date on which the credit balance was generated.
Once the refund application is filed, the GST authorities will process it and issue a refund order. The refund amount will be credited to the bank account of the business within 30 days from the date of refund order.
Process of GST refund after cancellation of GST registration
The following steps are involved in claiming a refund of the amount shown in the GST credit ledger before cancellation of GST:
- First of all you need to Login to the GST Portal using your registered credentials.
- Here on the page you will able to see Refund tab, Click on the “Refund” tab.
- After this you will need to Click on the “New Refund Application” button.
- Select the type of refund you are applying for. In this case, select “Refund of amount shown in GST Credit Ledger”.
- Fill in the details of the refund application. This includes the amount of refund you are claiming, the reason for the refund and the supporting documents.
- Submit refund application.
The GST authorities will process your refund application and issue a refund order. Refund amount will be credited to your bank account within 30 days from the date of refund order.
Points that must be followed:
Here are some important things to keep in mind while claiming refund of the amount shown in GST refund after cancellation of GST registration:
- Refund application should be filed within two years from the date on which the credit balance was generated.
- All necessary supporting documents must be attached with the refund application.
- GST officers may ask for additional information or documents before processing the refund application.
- If the refund application is incomplete or there is any discrepancy in the information provided, the GST authorities may reject the refund application.
Claiming a refund of the amount shown in the GST credit ledger prior to cancellation of GST is a relatively simple process. However, it is important to ensure that you fulfill all the eligibility criteria and have filed the refund application correctly.