25 FAQs on Refund on account of Recipient of Deemed Export – All Solved!

Table of contents

1. What are Deemed Exports?

Deemed Exports are those supplies of goods that are notified by the government on the recommendation of the council as ‘Deemed Exports’ where:

  • The goods supplied do not leave India;
  • Payment for such supplies is received in Indian Rupees/ Convertible Foreign Exchange; and
  • Such goods are manufactured in India.

Following categories of supply of goods are declared as deemed exports:

1. Supply of goods by a registered person against Advance Authorisation
2. Supply of capital goods by a registered person against Export Promotion Capital Goods Authorisation
3. Supply of goods by a registered person to Export Oriented Unit
4. Supply of gold by a bank or Public Sector Undertaking

2. When refund application by Recipient of Deemed Exports can be filed?

If the recipient of deemed exports has paid the tax amount on inward supplies received which is qualified as deemed exports and have taken credit of tax paid in their Electronic Credit Ledger, then the recipient of deemed exports can claim refund of tax amount paid by them, which has been posted as input tax credit in their Electronic Credit Ledger, by providing the declaration that the supplier has neither claimed nor shall claim any refund with respect to the said supplies.

3. What are the relied upon documents which I have to upload with refund application of Recipient of deemed export?

You have to upload documents as are required to be filed along with Form RFD-01A, as notified under CGST Rules or Circulars issued in the matter and other such documents as the refund sanctioning authority may require.

Statement 5B shall be uploaded mandatorily with the details of invoices for which refund is to be claimed. Taxpayers have an option to upload upto 4 documents with the refund application, of size up to 5MB each. Therefore, any supporting document can be uploaded by the taxpayer, if required.

4. To whom should I file my application with?

The taxpayer shall file the refund application in Form RFD-01A on GST portal. Taxpayer shall choose ground of refund as Recipient of Deemed Exports” for claiming refund. After filing, refund application shall be assigned to Refund Processing Officer and applicant can track the status of refund application on GST Portal.

5. Can I file for multiple tax period in one refund application?

Yes, you can file for refund of multiple tax period in one refund application. E.g. If taxpayer wants to claim refund of Apr 2018, May 2018 and June 2018, then taxpayer can choose the period from Apr 2018 to June 2018 and file a single refund application.

6. Can I file nil refund for multiple tax period in one refund application?

Yes, you can file for nil refund for multiple tax period in one refund application.

E.g. If taxpayer doesn’t want to claim refund of Apr 2018, May 2018 and June 2018 as he doesn’t have any invoices for this period, then taxpayer can choose the period from Apr 2018 to June 2018 and file a nil refund application for that period.

Note: After filing nil refund application, taxpayer won’t be able to file refund application for that period in future.

7. Can nil period of refund be combined with the period in which there is refund in one application?

Yes, nil period of refund can be combined with the period in which there is refund in one application.

Let us suppose you want to file tax refund from Apr-Sep month, where you want to file nil refund for May-Jun month. There are two ways in which you can file your refund application.

  1. You can select Tax Period as Apr-Apr and file normal refund application. You can then select May-Jun and file Nil refund application. And, select Jul-Sep and file normal refund application.
  2. You can select Tax Period as Apr-Sep and file normal refund application.

8. Can I save application for refund?

Application for refund can be saved at any stage of completion for a maximum time period of 15 days from the date of creation of refund application. If the same is not filed within 15 days, the saved draft will be purged from the GST database.

Note: To view your saved application, navigate to Services > Refunds > My Saved/Filed Applications option.

9. Whether I would be able to file refund application without uploading statement of invoices?

No. Upload of Statement 5B with details of invoices is mandatory for filing refund application.

The statement uploaded by taxpayer would be validated with the details regarding subject supply declared by the supplier of deemed exports in their Form GSTR-1 filed for the relevant period. This information will be validated when the taxpayer uploads this statement while filing refund application on the GST Portal. On successful validation, the claim can be filed by such person.

10. From where can I download the utility to upload the statement?

Offline utility can be downloaded from the refund application page itself.

Navigate to Services > Refunds > Application for Refund > Select the refund type as “Recipient of Deemed Exports” > Refund Application > Download Offline Utility link.

11. What is the purpose of Download Offline Utility to upload the statement?

Download Offline Utility (Statement 5B) is provided to enter and upload details of invoices for which refund is being claimed.

12. What is the significance of VALIDATE STATEMENT button on the GST Portal?

Validate Statement button is used to validate invoice data provided by the taxpayer. The details of invoices would be validated from the details provided by supplier of deemed exports while filing their Form GSTR-1.

13. Can I update/ edit data after clicking the VALIDATE STATEMENT button?

Yes, you can update/ edit data even after you have validated the uploaded statement. If you want to update/delete the statement, then you would have to first delete the whole statement by clicking the DELETE STATEMENT button and upload a new statement of invoices again if needed.

14. What is the purpose of Download Unique/ Valid Invoices?

To download the invoices that have been uploaded successfully on the GST Portal, you can click on the hyperlink “Download Unique Invoices” before you click the Validate Statement button. After clicking the statement, the label of the button changes to Download Valid Invoices and you can download validated invoices by clicking on it.

15. What is the purpose of Download Invalid Invoices?

To download the invoices that have not been validated successfully along with error details on the GST Portal, you can click on the hyperlink “Download Invalid Invoices”.

16. I am getting a message “validated with error” while validating statement on the GST Portal. What do I do?

In case any statement is validated with error, click the Download Invalid Invoice link. Open the invalid invoice excel sheet. Error details are displayed. You can only rectify the error details in the JSON file and upload on the GST Portal again by clicking the CLICK HERE TO UPLOAD button.

17. I have uploaded statement which has been validated on the GST Portal. I need to upload a new statement of invoices again. What do I do?

If you don’t have any error and statement has been validated, and then you want to update/delete the statement, then you would have to first delete the whole statement by clicking the DELETE STATEMENT button and upload a new statement of invoices again if needed.

18. I am getting error that “Future date is not allowed for Invoice Document” while uploading statement on the GST Portal using the offline utility even if I am providing correct invoice dates. Why?

For offline utilities, there is no server date available and hence the utility will have to depend on local system date for validation. In case your system has incorrect date, such issues can come. User should correct local system date of their machine.

19. Can I preview the refund application before filing?

Yes, you can preview the refund application in PDF format to check for any inconsistency or discrepancy before filing on the GST Portal.

20. How can I track the status of application for refund?

To track your filed application, navigate to Services > Refunds > Track Application Status option.

21. What is ARN?

Once the refund application is filed, Application Reference Number (ARN) receipt would be generated and ARN would be sent to your registered e-mail address and mobile number.

22. Where can I download my filed refund application?

Navigate to Services > User Services > My Applications link to download your filed refund application.

23. What happens when refund application is filed?

  • GST Portal generates an ARN and displays it in a confirmation message, indicating that the refund application has been successfully filed.
  • GST Portal sends the ARN to registered e-mail ID and mobile number of the registered taxpayer.

24. Whether there is any ledger entry on filing refund application?

Yes, there is debit ledger entry in Electronic Credit Ledger on filing refund application equivalent to the amount of refund claimed.

25. When / how will the refund Form RFD-01A be processed?

Once the ARN is generated on filing of refund application in Form RFD-01A, the refund application along with the documents attached while filing the form would be assigned to Refund Processing Officer for processing the refund. Tax payer can track the status of refund application using track status functionality.

The application will be processed and refund will be disbursed by the Jurisdictional Authority after scrutiny.

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