RFD-01 and RFD-01A: Key Forms for GST Refund Claims
RFD-01 and RFD-01A: Key Forms for GST Refund Claims
Mar 22, 2024
15 Mins
RFD-01 and Related Forms Guide
The RFD-01 form is crucial for claiming a GST refund in various situations. The process of applying for a refund under GST law differs depending on the scenario, as detailed in our previous article on the refund process. Today, we will focus on the RFD-01 form, including its contents, format, filing deadline, origin, prerequisites, and more.
Latest Updates on GST Refunds
July 5, 2022: Taxpayers can exclude the period of the COVID pandemic (March 1, 2020, to February 28, 2022) when calculating the timeframe for filing GST refund applications under Sections 54 or 55 of the CGST Act.
February 1, 2022: Budget 2022 amendments include the following changes:
1. Section 54 is amended to specify the form and manner for claiming a refund of any balance in the electronic cash ledger.
2. The time limit for UN agencies to claim a refund is extended from six months to two years from the last day of the quarter when the supply was received.
3. The restriction on refunding taxpayers for tax defaults, previously applicable only to unutilized ITC refunds, now applies to other types of refunds as well.
4. The relevant date for filing a refund claim application for supplies to SEZ is clarified in a new sub-clause (ba) of clause (2) of the explanation.
May 1, 2021: The time limit to reject any refund claim in full or part is extended if it falls between April 15, 2021, and May 30, 2021. The extended time limit is the later of either 15 days after replying to the notice or May 31, 2021.
What is RFD-01 and RFD-01A?
Any taxpayer can file a refund claim using the online form RFD-01 on the GST portal. RFD-01A refers to the offline application for a refund, which is no longer in use. A refund is issued only when the refund amount exceeds Rs. 1,000.
RFD-01 is an application for online processing of refunds under GST. It must be e-filed on the GST portal to claim a refund for the following:
- Taxes, cess, and interest paid for zero-rated supplies (excluding goods exported with tax payment)
- Excess cash paid into the electronic cash ledger
- Unutilized input tax credit due to inverted duty structure
- Excess tax payment due to cancellation or termination of a service agreement or contract.
On the other hand, RFD-01A is a temporary solution that replicates RFD-01 until the online facility is enabled for refund claims.
RFD-01A is the application form for refunds under GST that require manual processing, as notified for certain refund cases.
To file the RFD-01 or RFD-01A application, log in to the GST portal, go to the 'Refund' tab, select 'Application for Refund,' choose the refund type, and fill in the necessary details. Most of the details can be filled using the offline excel tool. Once submitted, an Application Reference Number (ARN) will be generated, and the refund will be processed by the designated officer within 15 days.
The designated officer, either a central tax authority or a state/UT tax authority, will notify the taxpayer of the refund processing through an Acknowledgement in RFD-02 or RFD-03.
Who should file the application in RFD-01 or RFD-01A?
Except for deemed export and SEZ supplies, the taxpayer making the supplies is eligible to claim a refund of accumulated input tax credit (ITC) for exports without tax payment. Any taxpayer can claim a refund for excess cash balance in the electronic cash ledger or excessive tax paid due to an error.
Additionally, an unregistered person can claim a refund for excess tax payment due to cancellation or termination of a service agreement or contract.
For deemed export and SEZ supplies, either the recipient or the supplier can apply for a refund of taxes paid. However, when it comes to a specific invoice of deemed exports, both the supplier and recipient cannot claim a refund simultaneously. If the supplier applies for a refund, the recipient must provide a declaration stating that they will not claim a refund for that particular supply.
Types of refunds applicable for RFD-01/01A
The following types of refunds under GST can be processed using the RFD-01 form if filed correctly:
- IGST paid on zero-rated supplies, including exports of service with tax payment and supply to SEZ units or developers.
- ITC on exports of goods or services under the letter of undertaking or bond, without tax payment.
- Refund claims for deemed exports by recipients or suppliers.
- Refund claims due to an inverted duty structure.
- Refund of excess balance in the electronic cash ledger.
- Excessive tax paid by error.
- Refund due to assessment, provisional assessment, appeal, or any other order.
- Tax paid for an intrastate supply later declared as interstate or vice versa.
- Miscellaneous refund cases, as specified.
Refund claims by unregistered taxpayers also fall under this category.
GST refund cases where RFD-01 and RFD-01A should not be filed
RFD-01 or RFD-01A is not required for the following refund claims:
- Export of goods involving payment of export duty.
- Exports of goods where IGST is paid, and the shipping bill serves as the application for a refund by default.
- Cases where the supplier avails the drawback scheme of the CGST/SGST/IGST paid on supplies.
- Refund claims by UN or embassy agencies and certain notified persons.
- Cases involving casual taxable persons or non-resident taxable persons.
Prerequisites for applying for a refund
To apply for a refund of tax paid or accumulated ITC without payment of output tax for zero-rated supplies and deemed exports, the applicant must have filed the GSTR-1 and GSTR-3B for the relevant month when the supplies were made.
It is crucial to fill out the applicable tables in the GSTR-1, such as Table 6A for exports, Table 6B for supplies to SEZ units/developers, and Table 6C for deemed exports. Additionally, GSTR-3B must be filled out in Table 3.1(b) and aligned with the GSTR-1.
Any discrepancies found in the returns may cause delays in refund processing. The applicant must have a list of invoices to support their refund claim.
For unregistered persons claiming a GST refund for excessive tax payment due to cancellation or termination of a service agreement or contract, the following documents must be submitted:
- Statement containing invoice details such as invoice number, date, value, tax paid, etc.
- Copies of the invoices.
- Proof of payment made to the supplier.
- Copy of the agreement, registered agreement, or contract, if applicable.
- Letter from the supplier confirming the cancellation or termination.
- Details and proof of payment received from the supplier in relation to the agreement cancellation or termination.
- Certificate from the supplier confirming that the tax has been paid for the invoices claimed for refund and that no credit note has been issued for adjusting the tax liability. The certificate should also state that the supplier will not claim a refund for the tax amount linked to these invoices.
- Certain cases may require a certificate from a Chartered Accountant or Cost Accountant.
Time limit and frequency of filing RFD-01
The refund claim must be made using RFD-01 within two years from the relevant date.
RFD-01 must be filed monthly for the following cases:
- Refund claims for zero-rated supplies.
- Refund claims for the inverted duty structure.
- Refund claims for deemed exports.
- Refund of excess balance in the electronic cash ledger.
RFD-01 can also be filed for multiple tax periods within a single financial year.
For supplies to SEZ units or developers, a supplier must file this form once the receipt of goods is confirmed by an authorized officer from the specified zone.
For supplies of services to SEZ units or developers, a supplier must file this form once the evidence of service receipt is confirmed by an authorized officer from the specified zone.
For refunds claimed by unregistered taxpayers, the application must be filed within two years from the date of issuance of the cancellation letter for the contract.
Format of RFD-01 and RFD-01A
The format of RFD-01 can be divided into the following parts:
A. Basic Form (Sl. No. 1-10)
B. Declarations and Verification
C. Annexure-1
D. Annexure-2
The basic form includes details such as the GSTIN/temporary ID, legal name, trade name, address of the principal place of business, tax period, amount of IGST, CGST and SGST, interest or cess, selection of refund grounds, bank account details for refund credit, and verification by an authorized person.
RFD-01A follows a similar format but with limited refund grounds and without the bank details and self-declaration sections.
Declarations and verification sections require certain assertions to be made by the applicant regarding their claim for refund and tax liability.
Annexure-1 consists of various statements and declarations that must be made or submitted depending on the type of refund claimed. However, if the refund claim amount is below Rs. 2 lakh, the applicant only needs to provide a self-declaration stating that the recipient of goods or services is not claiming any ITC benefit.
Annexure-2 requires a certificate issued by a Chartered Accountant or Cost Accountant, which must be attached to the refund application.
Calculation of the refund amount
Typically, the refund amount includes the tax, interest, or cess paid as per the tax invoice.
If the invoice details are amended (including exports), the refund will be calculated based on the amended value.
For a refund of accumulated ITC, two formulas are prescribed:
1. For zero-rated supplies made without tax payment by executing a Letter of Undertaking/bond:
Refund amount of ITC = Net ITC x [(Turnover of zero-rated supply of Goods +
Turnover of zero-rated supply of Services)/Adjusted Total Turnover] (for the
relevant period)
2. For an inverted duty structure (when the rate of tax on inward supplies exceeds outward supplies):
Maximum Refund amount of ITC = [Net ITC x (Turnover of inverted rated supply
of goods and services/Adjusted Total Turnover)] - Output tax payable on the
inverted rated supply of goods and services
RFD-01B and RFD-01W
RFD-01B, also known as 'Refund order details,' is a summary of refund orders passed after the entire refund process is completed.
RFD-01W is used by an applicant to withdraw a previously submitted refund application.
Follow-up after filing the refund application
Upon submitting the application in RFD-01, the refund amount applied for will be automatically debited from the claimant's electronic credit ledger. Keep note of the debit reference number for future reference.
Within 15 days of receipt, the GST officer will review the application for completeness and inform the claimant through RFD-03 if any declarations or attachments were missed, requesting a fresh application. Please note that the scrutiny will not apply in the case of a refund claim for the balance in the electronic cash ledger.
After successfully applying for a refund, the claimant will receive an acknowledgment in RFD-02 on the GST portal. The acknowledgment will include the Application Reference Number (ARN), period of the refund claim, and date of filing RFD-01.
The GST officer has 60 days from the date of receiving the complete refund application, as indicated by the RFD-02, to approve the refund claim.
Refund sanctioning will be carried out by the designated GST officer, while the payment of the refund will be processed by the respective central tax authority for IGST/CGST and state tax authority for SGST/UTGST. The officer who issued the refund order will communicate with the tax authorities to initiate payment within seven working days of issuing the order.
RFD-01 and Related Forms Guide
The RFD-01 form is crucial for claiming a GST refund in various situations. The process of applying for a refund under GST law differs depending on the scenario, as detailed in our previous article on the refund process. Today, we will focus on the RFD-01 form, including its contents, format, filing deadline, origin, prerequisites, and more.
Latest Updates on GST Refunds
July 5, 2022: Taxpayers can exclude the period of the COVID pandemic (March 1, 2020, to February 28, 2022) when calculating the timeframe for filing GST refund applications under Sections 54 or 55 of the CGST Act.
February 1, 2022: Budget 2022 amendments include the following changes:
1. Section 54 is amended to specify the form and manner for claiming a refund of any balance in the electronic cash ledger.
2. The time limit for UN agencies to claim a refund is extended from six months to two years from the last day of the quarter when the supply was received.
3. The restriction on refunding taxpayers for tax defaults, previously applicable only to unutilized ITC refunds, now applies to other types of refunds as well.
4. The relevant date for filing a refund claim application for supplies to SEZ is clarified in a new sub-clause (ba) of clause (2) of the explanation.
May 1, 2021: The time limit to reject any refund claim in full or part is extended if it falls between April 15, 2021, and May 30, 2021. The extended time limit is the later of either 15 days after replying to the notice or May 31, 2021.
What is RFD-01 and RFD-01A?
Any taxpayer can file a refund claim using the online form RFD-01 on the GST portal. RFD-01A refers to the offline application for a refund, which is no longer in use. A refund is issued only when the refund amount exceeds Rs. 1,000.
RFD-01 is an application for online processing of refunds under GST. It must be e-filed on the GST portal to claim a refund for the following:
- Taxes, cess, and interest paid for zero-rated supplies (excluding goods exported with tax payment)
- Excess cash paid into the electronic cash ledger
- Unutilized input tax credit due to inverted duty structure
- Excess tax payment due to cancellation or termination of a service agreement or contract.
On the other hand, RFD-01A is a temporary solution that replicates RFD-01 until the online facility is enabled for refund claims.
RFD-01A is the application form for refunds under GST that require manual processing, as notified for certain refund cases.
To file the RFD-01 or RFD-01A application, log in to the GST portal, go to the 'Refund' tab, select 'Application for Refund,' choose the refund type, and fill in the necessary details. Most of the details can be filled using the offline excel tool. Once submitted, an Application Reference Number (ARN) will be generated, and the refund will be processed by the designated officer within 15 days.
The designated officer, either a central tax authority or a state/UT tax authority, will notify the taxpayer of the refund processing through an Acknowledgement in RFD-02 or RFD-03.
Who should file the application in RFD-01 or RFD-01A?
Except for deemed export and SEZ supplies, the taxpayer making the supplies is eligible to claim a refund of accumulated input tax credit (ITC) for exports without tax payment. Any taxpayer can claim a refund for excess cash balance in the electronic cash ledger or excessive tax paid due to an error.
Additionally, an unregistered person can claim a refund for excess tax payment due to cancellation or termination of a service agreement or contract.
For deemed export and SEZ supplies, either the recipient or the supplier can apply for a refund of taxes paid. However, when it comes to a specific invoice of deemed exports, both the supplier and recipient cannot claim a refund simultaneously. If the supplier applies for a refund, the recipient must provide a declaration stating that they will not claim a refund for that particular supply.
Types of refunds applicable for RFD-01/01A
The following types of refunds under GST can be processed using the RFD-01 form if filed correctly:
- IGST paid on zero-rated supplies, including exports of service with tax payment and supply to SEZ units or developers.
- ITC on exports of goods or services under the letter of undertaking or bond, without tax payment.
- Refund claims for deemed exports by recipients or suppliers.
- Refund claims due to an inverted duty structure.
- Refund of excess balance in the electronic cash ledger.
- Excessive tax paid by error.
- Refund due to assessment, provisional assessment, appeal, or any other order.
- Tax paid for an intrastate supply later declared as interstate or vice versa.
- Miscellaneous refund cases, as specified.
Refund claims by unregistered taxpayers also fall under this category.
GST refund cases where RFD-01 and RFD-01A should not be filed
RFD-01 or RFD-01A is not required for the following refund claims:
- Export of goods involving payment of export duty.
- Exports of goods where IGST is paid, and the shipping bill serves as the application for a refund by default.
- Cases where the supplier avails the drawback scheme of the CGST/SGST/IGST paid on supplies.
- Refund claims by UN or embassy agencies and certain notified persons.
- Cases involving casual taxable persons or non-resident taxable persons.
Prerequisites for applying for a refund
To apply for a refund of tax paid or accumulated ITC without payment of output tax for zero-rated supplies and deemed exports, the applicant must have filed the GSTR-1 and GSTR-3B for the relevant month when the supplies were made.
It is crucial to fill out the applicable tables in the GSTR-1, such as Table 6A for exports, Table 6B for supplies to SEZ units/developers, and Table 6C for deemed exports. Additionally, GSTR-3B must be filled out in Table 3.1(b) and aligned with the GSTR-1.
Any discrepancies found in the returns may cause delays in refund processing. The applicant must have a list of invoices to support their refund claim.
For unregistered persons claiming a GST refund for excessive tax payment due to cancellation or termination of a service agreement or contract, the following documents must be submitted:
- Statement containing invoice details such as invoice number, date, value, tax paid, etc.
- Copies of the invoices.
- Proof of payment made to the supplier.
- Copy of the agreement, registered agreement, or contract, if applicable.
- Letter from the supplier confirming the cancellation or termination.
- Details and proof of payment received from the supplier in relation to the agreement cancellation or termination.
- Certificate from the supplier confirming that the tax has been paid for the invoices claimed for refund and that no credit note has been issued for adjusting the tax liability. The certificate should also state that the supplier will not claim a refund for the tax amount linked to these invoices.
- Certain cases may require a certificate from a Chartered Accountant or Cost Accountant.
Time limit and frequency of filing RFD-01
The refund claim must be made using RFD-01 within two years from the relevant date.
RFD-01 must be filed monthly for the following cases:
- Refund claims for zero-rated supplies.
- Refund claims for the inverted duty structure.
- Refund claims for deemed exports.
- Refund of excess balance in the electronic cash ledger.
RFD-01 can also be filed for multiple tax periods within a single financial year.
For supplies to SEZ units or developers, a supplier must file this form once the receipt of goods is confirmed by an authorized officer from the specified zone.
For supplies of services to SEZ units or developers, a supplier must file this form once the evidence of service receipt is confirmed by an authorized officer from the specified zone.
For refunds claimed by unregistered taxpayers, the application must be filed within two years from the date of issuance of the cancellation letter for the contract.
Format of RFD-01 and RFD-01A
The format of RFD-01 can be divided into the following parts:
A. Basic Form (Sl. No. 1-10)
B. Declarations and Verification
C. Annexure-1
D. Annexure-2
The basic form includes details such as the GSTIN/temporary ID, legal name, trade name, address of the principal place of business, tax period, amount of IGST, CGST and SGST, interest or cess, selection of refund grounds, bank account details for refund credit, and verification by an authorized person.
RFD-01A follows a similar format but with limited refund grounds and without the bank details and self-declaration sections.
Declarations and verification sections require certain assertions to be made by the applicant regarding their claim for refund and tax liability.
Annexure-1 consists of various statements and declarations that must be made or submitted depending on the type of refund claimed. However, if the refund claim amount is below Rs. 2 lakh, the applicant only needs to provide a self-declaration stating that the recipient of goods or services is not claiming any ITC benefit.
Annexure-2 requires a certificate issued by a Chartered Accountant or Cost Accountant, which must be attached to the refund application.
Calculation of the refund amount
Typically, the refund amount includes the tax, interest, or cess paid as per the tax invoice.
If the invoice details are amended (including exports), the refund will be calculated based on the amended value.
For a refund of accumulated ITC, two formulas are prescribed:
1. For zero-rated supplies made without tax payment by executing a Letter of Undertaking/bond:
Refund amount of ITC = Net ITC x [(Turnover of zero-rated supply of Goods +
Turnover of zero-rated supply of Services)/Adjusted Total Turnover] (for the
relevant period)
2. For an inverted duty structure (when the rate of tax on inward supplies exceeds outward supplies):
Maximum Refund amount of ITC = [Net ITC x (Turnover of inverted rated supply
of goods and services/Adjusted Total Turnover)] - Output tax payable on the
inverted rated supply of goods and services
RFD-01B and RFD-01W
RFD-01B, also known as 'Refund order details,' is a summary of refund orders passed after the entire refund process is completed.
RFD-01W is used by an applicant to withdraw a previously submitted refund application.
Follow-up after filing the refund application
Upon submitting the application in RFD-01, the refund amount applied for will be automatically debited from the claimant's electronic credit ledger. Keep note of the debit reference number for future reference.
Within 15 days of receipt, the GST officer will review the application for completeness and inform the claimant through RFD-03 if any declarations or attachments were missed, requesting a fresh application. Please note that the scrutiny will not apply in the case of a refund claim for the balance in the electronic cash ledger.
After successfully applying for a refund, the claimant will receive an acknowledgment in RFD-02 on the GST portal. The acknowledgment will include the Application Reference Number (ARN), period of the refund claim, and date of filing RFD-01.
The GST officer has 60 days from the date of receiving the complete refund application, as indicated by the RFD-02, to approve the refund claim.
Refund sanctioning will be carried out by the designated GST officer, while the payment of the refund will be processed by the respective central tax authority for IGST/CGST and state tax authority for SGST/UTGST. The officer who issued the refund order will communicate with the tax authorities to initiate payment within seven working days of issuing the order.
Author
Pluto Team
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