GST Jamku AIRefund of tax
Section 54(1)
Any person claiming refund of any tax and interest, if any, paid on such tax or any other amount paid by him, may make an application before the expiry of two years from the relevant date in such form and manner as may be prescribed:
Provided that a registered person, claiming refund of any balance in the electronic cash ledger in accordance with the provisions of sub-section (6) of section 49, may claim such refund in [such form and] such manner as may be prescribed.
Determine Eligibility: Before proceeding, ensure that you are eligible to claim a refund. This typically applies to individuals who have paid excess tax or have a balance in their electronic cash ledger.
Time Limit: Make sure to submit your refund application before two years from the relevant date. This time frame is crucial, and applications submitted after this period may not be considered.
Application Form: Fill out the required form to apply for a refund. The form and its submission process will be outlined by the relevant tax authorities. Follow these guidelines carefully to avoid any complications.
Electronic Cash Ledger Refund: If you are a registered person claiming a refund for the balance in your electronic cash ledger, follow the specific guidelines mentioned in sub-section (6) of section 49. This might involve additional steps or a different form, so be sure to check the prescribed method.
Conclusion: Claiming a tax refund doesn't have to be complicated. By understanding the eligibility criteria, adhering to the time limit, and following the prescribed form and process, you can ensure a smooth refund application. Remember to stay informed about any specific requirements for electronic cash ledger refunds if applicable.
Section 54(2)
A specialised agency of the United Nations Organisation or any Multilateral Financial Institution and Organisation notified under the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947), Consulate or Embassy of foreign countries or any other person or class of persons, as notified under section 55, entitled to a refund of tax paid by it on inward supplies of goods or services or both, may make an application for such refund, in such form and manner as may be prescribed, before the expiry of [two years] from the last day of the quarter in which such supply was received.
Special Cases Refund Application
Certain entities, such as UN specialised agencies, notified Multilateral Financial Institutions and Organisations, Consulates, Embassies, or others mentioned in section 55, can apply for a tax refund for inward supplies. Here's what to do:
- Submit your application before two years from the last day of the quarter in which you received the supply.
- Use the prescribed form and follow the specified procedure.
Conclusion: Claiming a tax refund is possible for various individuals and entities. Just make sure to follow the guidelines mentioned above to ensure a smooth process.
Section 54(3)
Subject to the provisions of sub-section (10), a registered person may claim refund of any unutilised input tax credit at the end of any tax period:
Provided that no refund of unutilised input tax credit shall be allowed in cases other than—
(i) zero-rated supplies made without payment of tax;
(ii) where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies), except supplies of goods or services or both as may be notified by the Government on the recommendations of the Council:
Provided further that no refund of unutilised input tax credit shall be allowed in cases where the goods exported out of India are subjected to export duty:
Provided also that no refund of input tax credit shall be allowed, if the supplier of goods or services or both avails of drawback in respect of central tax or claims refund of the integrated tax paid on such supplies.
Refunds for unutilized input tax credit are only permissible in specific cases, as outlined below:
Zero-Rated Supplies: Refunds are allowed for zero-rated supplies made without the payment of tax.
Tax Rate Discrepancy: Refunds can be claimed when the credit accumulates due to the tax rate on inputs being higher than the rate on output supplies. This exception does not apply to nil-rated or fully exempt supplies unless otherwise notified by the Government based on the Council's recommendations.
Export Duty Exclusion: No refund is permitted when goods exported out of India are subjected to export duty.
Additional Conditions
Furthermore, no refund of unutilized input tax credit is allowed in situations where the supplier of goods or services avails of drawback in respect of central tax or claims a refund of the integrated tax paid on such supplies.
Section 54(4)
The application shall be accompanied by—
(a) such documentary evidence as may be prescribed to establish that a refund is due to the applicant; and
(b) such documentary or other evidence (including the documents referred to in section 33) as the applicant may furnish to establish that the amount of tax and interest, if any, paid on such tax or any other amount paid in relation to which such refund is claimed was collected from, or paid by, him and the incidence of such tax and interest had not been passed on to any other person:
Provided that where the amount claimed as refund is less than two lakh rupees, it shall not be necessary for the applicant to furnish any documentary and other evidences but he may file a declaration, based on the documentary or other evidences available with him, certifying that the incidence of such tax and interest had not been passed on to any other person.
To apply for a refund, you need to provide certain documents. Here's what you need:
Proof for Refund Eligibility Include documents as required to prove that you are eligible for a refund.
Supporting Evidence Submit any documents or proof (including those mentioned in section 33) to show that the tax and interest, if any, were paid by you. Also, prove that the burden of this payment was not transferred to someone else.
Note: If the refund amount is less than two lakh rupees, you don't need to provide extensive documentation. Instead, you can submit a declaration based on the evidence you have, stating that the tax and interest burden was not shifted to another person.
Section 54(5)
If, on receipt of any such application, the proper officer is satisfied that the whole or part of the amount claimed as refund is refundable, he may make an order accordingly and the amount so determined shall be credited to the Fund referred to in section 57.
Application Process: Once you've submitted your application, the proper officer will carefully review it. If they find that the whole or part of the claimed refund is eligible, they will proceed to make an order.
Refund Order: Upon satisfaction with your application, the proper officer issues an order for the refund. This order specifies the amount deemed refundable. Importantly, this determined amount will be credited to the Fund mentioned in section 57.
Conclusion: Understanding Section 54(5) is the key to a successful tax refund. By following the application process and meeting the necessary criteria, you can ensure that your refund is processed smoothly, and the amount is credited to the designated fund.
Section 54(6)
Notwithstanding anything contained in sub-section (5), the proper officer may, in the case of any claim for refund on account of zero-rated supply of goods or services or both made by registered persons, other than such category of registered persons as may be notified by the Government on the recommendations of the Council, refund on a provisional basis, ninety per cent of the total amount so claimed, in such manner and subject to such conditions, limitations and safeguards as may be prescribed and thereafter make an order under sub- section (5) for final settlement of the refund claim after due verification of documents furnished by the applicant.
Conditions for Provisional Refund: The government, based on the recommendations of the Council, may notify specific categories of registered persons exempt from this provisional refund process. In all other cases, the proper officer can grant a provisional refund, provided it meets the conditions, limitations, and safeguards as prescribed.
Procedure for Provisional Refund: The provisional refund is processed in a manner specified by the regulations. The applicant must adhere to the set conditions and limitations during this stage. The provisional refund is a temporary measure aimed at providing timely financial relief to the registered individuals.
Final Settlement Order: After the provisional refund, the proper officer initiates an order under sub-section (5) for the final settlement of the refund claim. This step occurs after a comprehensive verification of the documents furnished by the applicant. The purpose is to ensure accuracy and validity before completing the refund process.
Conclusion: The provision for a provisional refund in the case of zero-rated supply claims is a measure to facilitate timely financial support for registered individuals. The government, through the proper officer, oversees the process to ensure that the final settlement accurately reflects the legitimate refund claim, as supported by the documents submitted by the applicant.
Section 54(7)
The proper officer shall issue the order under sub-section (5) within sixty days from the date of receipt of application complete in all respects.
Refund Application Requirements Simplified
To apply for a refund, you need to provide certain documents. Here's what you need:
Proof for Refund Eligibility Include documents as required to prove that you are eligible for a refund.
Supporting Evidence Submit any documents or proof (including those mentioned in section 33) to show that the tax and interest, if any, were paid by you. Also, prove that the burden of this payment was not transferred to someone else.
Note: If the refund amount is less than two lakh rupees, you don't need to provide extensive documentation. Instead, you can submit a declaration based on the evidence you have, stating that the tax and interest burden was not shifted to another person.
Section 54(8)
Notwithstanding anything contained in sub-section (5), the refundable amount shall, instead of being credited to the Fund, be paid to the applicant, if such amount is relatable to—
(a) refund of tax paid on [export] of goods or services or both or on inputs or input services used in making such [exports];
(b) refund of unutilised input tax credit under sub-section (3);
(c) refund of tax paid on a supply which is not provided, either wholly or partially, and for which invoice has not been issued, or where a refund voucher has been issued;
(d) refund of tax in pursuance of section 77;
(e) the tax and interest, if any, or any other amount paid by the applicant, if he had not passed on the incidence of such tax and interest to any other person; or
(f) the tax or interest borne by such other class of applicants as the Government may, on the recommendations of the Council, by notification, specify.
(8A) The Government may disburse the refund of the State tax in such manner as may be prescribed.
(a) Refund for Export of Goods or Services
If you've paid taxes on the export of goods or services, or on the inputs used in making these exports, the refundable amount won't go to a general fund. Instead, it will be directly paid to you.
(b) Refund of Unutilized Input Tax Credit
In case you have input tax credit that you haven't used (as mentioned in sub-section 3), you are eligible for a refund.
(c) Refund for Undelivered Supplies
If you paid tax for a supply that was not provided, either wholly or partially, and no invoice was issued, or if a refund voucher has been issued, you qualify for a refund.
(d) Refund Pursuant to Section 77
Refunds can also be granted based on the provisions of section 77.
(e) Passing on the Incidence
If you, as the applicant, paid the tax and interest without passing on the burden to someone else, you are entitled to a refund.
(f) Special Cases
There are instances where the government may specify other classes of applicants who can receive a refund. This is done based on the recommendations of the Council through official notifications.
State Tax Refunds
Additionally, for state taxes, the government has the authority to disburse the refund in a manner that is prescribed by relevant regulations. This ensures a systematic and organized process for returning state tax refunds.
In essence, Section 54(8) ensures that individuals or businesses receive their tax refunds promptly, depending on the specific circumstances outlined in the provision.
Section 54(9)
Notwithstanding anything to the contrary contained in any judgment, decree, order or direction of the Appellate Tribunal or any court or in any other provisions of this Act or the rules made thereunder or in any other law for the time being in force, no refund shall be made except in accordance with the provisions of sub-section (8).
The passage you provided seems to be a legal provision or clause from a statute or law. It appears to state that, regardless of any conflicting statements in judgments, decrees, orders, directions of the Appellate Tribunal, court decisions, or any other provisions of the mentioned Act, rules, or other laws, no refund shall be made except in accordance with the provisions specified in sub-section (8) of the relevant legislation.
Without additional context or information about the specific legal document or jurisdiction, it's challenging to provide a more detailed explanation. If you have a specific question about this provision or if you need clarification on any legal matter, it would be advisable to consult with a legal professional or refer to the complete text of the relevant law.
Section 54(10)
Where any refund is due to a registered person who has defaulted in furnishing any return or who is required to pay any tax, interest or penalty, which has not been stayed by any court, Tribunal or Appellate Authority by the specified date, the proper officer may—
(a) withhold payment of refund due until the said person has furnished the return or paid the tax, interest or penalty, as the case may be;
(b) deduct from the refund due, any tax, interest, penalty, fee or any other amount which the taxable person is liable to pay but which remains unpaid under this Act or under the existing law. Explanation for the purposes of this sub-section, the expression "specified date" shall mean the last date for filing an appeal under this Act.
The passage you provided appears to be a provision from a legal or regulatory document related to taxation, possibly in the context of a Goods and Services Tax (GST) or a similar system. Let me break down the key points:
Refund Due to a Registered Person:
- The text discusses a situation where a registered person is eligible for a refund.
Default in Furnishing Return or Payment of Tax, Interest, or Penalty:
- If the registered person has defaulted in either filing a return or paying tax, interest, or penalty, and there is no stay order from a court, Tribunal, or Appellate Authority by the specified date, certain actions can be taken.
Options for the Proper Officer:
- (a) The proper officer may withhold the payment of the refund until the person has furnished the required return or paid the outstanding tax, interest, or penalty.
- (b) The officer may deduct from the refund due any amount that the taxable person is liable to pay but remains unpaid under the current tax law or any previous law.
Explanation - "Specified Date":
- The "specified date" is defined as the last date for filing an appeal under the relevant tax law.
In summary, this provision allows the tax authorities to withhold or deduct from a refund due to a registered person if that person has not fulfilled their obligations regarding filing returns or paying outstanding taxes, interest, or penalties by the specified date, unless there is a stay order from a higher authority. This is a common mechanism in tax systems to ensure compliance with tax obligations before refunds are issued.
Section 54(11)
(11) Where an order giving rise to a refund is the subject matter of an appeal or further proceedings or where any other proceedings under this Act is pending and the Commissioner is of the opinion that grant of such refund is likely to adversely affect the revenue in the said appeal or other proceedings on account of malfeasance or fraud committed, he may, after giving the taxable person an opportunity of being heard, withhold the refund till such time as he may determine.
Section 54(12)
Where a refund is withheld under sub-section (11), the taxable person shall, notwithstanding anything contained in section 56, be entitled to interest at such rate not exceeding six per cent as may be notified on the recommendations of the Council, if as a result of the appeal or further proceedings he becomes entitled to refund.
Section 54(13)
Notwithstanding anything to the contrary contained in this section, the amount of advance tax deposited by a casual taxable person or a non-resident taxable person under sub-section (2) of section 27, shall not be refunded unless such person has, in respect of the entire period for which the certificate of registration granted to him had remained in force, furnished all the returns required under section 39.
This excerpt seems to be part of a broader legal framework related to taxation, and it likely provides guidelines for the withholding and release of tax refunds in certain circumstances. The specifics may vary depending on the jurisdiction and the particular tax laws being referred to.
Section 54(14)
Notwithstanding anything contained in this section, no refund under sub-section (5) or sub-section (6) shall be paid to an applicant, if the amount is less than one thousand rupees.
Explanation for the purposes of this section,—
(1) "refund" includes refund of tax paid on zero-rated supplies of goods or services or both or on inputs or input services used in making such zero-rated supplies, or refund of tax on the supply of goods regarded as deemed exports, or refund of unutilised input tax credit as provided under sub-section (3).
(2) "relevant date" means—
(a) in the case of goods exported out of India where a refund of tax paid is available in respect of goods themselves or, as the case may be, the inputs or input services used in such goods,—
(i) if the goods are exported by sea or air, the date on which the ship or the aircraft in which such goods are loaded, leaves India; or
(ii) if the goods are exported by land, the date on which such goods pass the frontier; or
(iii) if the goods are exported by post, the date of despatch of goods by the Post Office concerned to a place outside India;
(b) in the case of supply of goods regarded as deemed exports where a refund of tax paid is available in respect of the goods, the date on which the return relating to such deemed exports is furnished;
(ba) in case of zero-rated supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit where a refund of tax paid is available in respect of such supplies themselves, or as the case may be, the inputs or input services used in such supplies, the due date for furnishing of return under section 39 in respect of such supplies;
(c) in the case of services exported out of India where a refund of tax paid is available in respect of services themselves or, as the case may be, the inputs or input services used in such services, the date of—
(i) receipt of payment in convertible foreign exchange [or in Indian rupees wherever permitted by the Reserve Bank of India], where the supply of services had been completed prior to the receipt of such payment; or
(ii) issue of invoice, where payment for the services had been received in advance prior to the date of issue of the invoice;
(d) in case where the tax becomes refundable as a consequence of judgment, decree, order or direction of the Appellate Authority, Appellate Tribunal or any court, the date of communication of such judgment, decree, order or direction;
(e) in the case of refund of unutilised input tax credit under clause (ii) of the first proviso to sub-section (3), the due date for furnishing of return under section 39 for the period in which such claim for refund arises;
(f) in the case where tax is paid provisionally under this Act or the rules made thereunder, the date of adjustment of tax after the final assessment thereof;
(g) in the case of a person, other than the supplier, the date of receipt of goods or services or both by such person; and
(h) in any other case, the date of payment of tax.
Minimum Refund Amount: No refund under sub-section (5) or sub-section (6) shall be paid to an applicant if the amount is less than one thousand rupees.
Explanation of "Refund":
- "Refund" includes various scenarios such as tax paid on zero-rated supplies, tax on deemed exports, and refund of unutilized input tax credit.
Definition of "Relevant Date":
- For goods exported out of India, the relevant date depends on the mode of export (sea, air, land, or post).
- For deemed exports, it's the date on which the return relating to such deemed exports is furnished.
- For zero-rated supplies to a Special Economic Zone (SEZ), it's the due date for furnishing the return under section 39.
- For services exported out of India, it's the date of receipt of payment in foreign exchange or the issue of the invoice.
- For refunds due to legal judgments or orders, it's the date of communication of such judgment, decree, order, or direction.
- For the refund of unutilized input tax credit, it's the due date for furnishing the return under section 39.
- For provisional tax payments, it's the date of adjustment after the final assessment.
- For a person other than the supplier, it's the date of receipt of goods or services.
- In other cases, it's the date of payment of tax.
This excerpt provides a detailed framework for determining the relevant date for various situations in the context of tax refunds. If you have specific questions or if there's something more you'd like to know about this section, feel free to ask!