GST Refund Claim

[TNarayanan Unni]

One of our client , providing renting of Immovable property services, under GST had initially registered in two states, Maharashtra where the registered premises was situated, and M.P state where the client is permanently residing. By mistake, GST liability to be paid in the State of Maharashtra was deposited in the M.P state RFD-01A was filed in the M.P state , however since no activities was conducted in the M.P state , registration was surrendered in spite of the fact that the refund was pending with the concerned GST Dept. M.P.

Now GST department is refusing the refund on the ground that the GST Registration has already been surrendered. Kindly guide as to how to approach the refund process.

[KASTURI SETHI]

Whether registration certification has been cancelled or not after surrender of the same ? If the same has not been cancelled by the department, then there should not be any problem.

Registration is mandatory for filing refund claim. See serial no. 1 of [FORM-GST-RFD-01A) wherein GST registration no. has to be mentioned.

[Shilpi Jain]

I understand that the refund application is already filed. In such a case refund should be granted

Surrender of registration cannot be a reason for not granting of refund

[KASTURI SETHI]

I agree with Madam Shilpi Jain. If surrendered registration is pending cancellation, refund cannot be denied.

AI Summary

Registration requirement for GST refund: surrender alone should not block a pending refund if cancellation is not effected. Surrender of GST registration does not automatically bar a pending refund claim filed in FORM-GST-RFD-01A; registration details are mandatory on the refund form, but if surrender is pending departmental cancellation the refund should not be denied on that basis.