The RFD-01 form is essential for claiming a GST refund in various circumstances under the GST law. The process varies based on the specific scenario, as explained in prior articles. This guide highlights aspects of the RFD-01 form, including details, format, filing deadlines, and more.

Recent Updates on GST Refund Policies

• July 5, 2022: Taxpayers can exclude certain periods affected by the COVID pandemic (March 1, 2020, to February 28, 2022) from the time calculation for filing GST refund claims under Sections 54 or 55 of the CGST Act.
• February 1, 2022: The 2022 budget introduced changes, including amendments to Section 54 for refund claims from the electronic cash ledger, extended refund claim periods for UN agencies, and broader restrictions on refund limits related to tax defaults. Additionally, a new clause clarifies the relevant date for SEZ supply refund applications.
• May 1, 2021: The deadline to reject refund claims between April 15, 2021, and May 30, 2021, has been extended to the later of 15 days post-reply to the notice or May 31, 2021.

Understanding RFD-01 and RFD-01A

Taxpayers file the RFD-01 form online to request a refund on the GST portal. The offline form, RFD-01A, is now obsolete. Refunds are processed only for claims exceeding Rs. 1,000. RFD-01 handles refunds for:

• Taxes on zero-rated supplies, except those exported with tax payment
• Excess cash in the electronic ledger
• Unutilized ITC due to inverted duty structures
• Overpayment of tax on canceled agreements

RFD-01A served as a temporary solution for manual refund processing before the online system was fully operational. Both forms require filing via the GST portal, generating an ARN, and processing within 15 days by a designated tax officer, who provides an acknowledgment through RFD-02 or RFD-03

Eligibility for RFD-01/01A Applications

Suppliers of exports without tax payments can claim accumulated ITC refunds, excluding deemed exports and SEZ supplies. Refund claims can also be made for excess ledger cash or erroneous tax payments. In deemed export cases, either the supplier or recipient can apply, but not both for the same supply.

Types of Refunds via RFD-01/01A

• IGST on zero-rated services including SEZ supplies
• ITC on exports without tax payment using a bond
• Refunds for deemed exports
• Claims due to the inverted duty structure
• Excess electronic ledger balances
• Erroneous tax overpayments
• Refund following assessments or orders
• Tax paid incorrectly declared as intra/interstate

RFD-01/01A filing is unnecessary for:

• Export goods with export duty paid
• Shipping bill-based applications for IGST-paid goods exports
• Drawback scheme-eligible CGST/SGST/IGST supplies
• UN or embassy agency refunds
• Casual or non-residential taxable persons

Refund Application Prerequisites

Applicants must file GSTR-1 and GSTR-3B for the relevant period. GSTR-1 should include export and SEZ supply data, while GSTR-3B must align accordingly. Supporting invoices and discrepancies could delay processing. Additionally, unregistered persons need invoice statements, payment proofs, and supplier documents for GST refunds on service contract terminations.

Filing Timeline and Frequency for RFD-01

RFD-01 must be filed within two years from the relevant date and is generally submitted monthly for various cases like zero-rated supplies and deemed exports. Multiple period claims are allowed within a financial year. SEZ services require confirmation from zone officials prior to filing.

For unused tax payment service terminations, unregistered taxpayers must apply within two years of contract cancellation.

RFD-01 and 01A Format

• Basic Form: GSTIN, business details, refund grounds, etc.
• Declarations and Verification: Applicant's refund and liability claims
• Annexure-1 and 2: Self-declarations and CA/Cost Accountant certificates (if refund exceeds Rs. 2 lakh)

Calculating Refund Amount

Refund includes invoice-stated tax/interest/cess. Amended invoice values dictate calculations. ITC refunds use specific formulas for zero-rated supplies without tax and inverted duty structures.

Example formula for zero-rated supplies: Refund = Net ITC x [(Turnover of zero-rated supplies)/Adjusted Total Turnover]

RFD-01B and RFD-01W

RFD-01B outlines final refund orders post-process, while RFD-01W enables refund application withdrawal.

Post-Application Procedure

Upon RFD-01 submission, the refund amount is debited from the claimant's electronic ledger and noted. GST officers review applications for completeness within 15 days, and RFD-03 indicates any deficiencies. Upon approval, refunds are processed by the respective tax authorities for IGST/CGST and SGST/UTGST within seven working days of order issuance. No scrutiny applies for electronic cash ledger balance claims.