Refund of Export of Services without Payment of Tax

[Rahul Chachan]

We have to apply refund for AY 2021-22 in whcih Total Export of Services was Rs. 10 lac ( 5 invoices of Rs. 2 lac each). Till march 2022 total consideration received was Rs. 9 Lac. Remaining 1 lac received in May 2022. Now what will be my turnover for calculation of GST Refund ?

If turnover for refund working will be considered as Rs. 9 Lac, should we show all 5 invoices of Rs. 10 Lac in Statement-03 and payment of 9 lac against them ?

We have filed application with service turnover of Rs. 10 lac. Reported Turnover of Rs. 10 lac and collection of Rs. 10 Lac in Statement -03 for refund application till March 2022. Officer has raised query in RFD-08 mentioning that we have mentioned payment of 1 lac recd in May 2022 in Statement -03 of refund application till Mar 2022.

What should we do now as there will be no impact on refund of ITC even if Service turnover is shown as Rs. 9 lac instead of Rs. 10 Lac

[Padmanathan KV]

Pls find Rule 92(3) enclosed:

(3) Where the proper officer is satisfied, for reasons to be recorded in writing, that the whole or any part of the amount claimed as refund is not admissible or is not payable to the applicant, he shall issue a notice in FORM GST RFD-08 to the applicant, requiring him to furnish a reply in FORM GST RFD-09 within a period of fifteen days of the receipt of such notice and after considering the reply, make an order in FORM GST RFD-06 sanctioning the amount of refund in whole or part, or rejecting the said refund claim and the said order shall be made available to the applicant electronically and the provisions of sub-rule (1) shall, mutatis mutandis, apply to the extent refund is allowed:

Since officer as issued RFD-08Notice for rejection of application for refund, you have to file reply in RFD-09 Reply to show cause notice within 15 days.

In the said reply, kindly mention the fact that you do not have any other turnover except this export turnover and this difference of 1 lakh in 'turnover of zero-rated supply' will not change the refund amount claimed by you.
It will be better to show a table working out refund with 'turnover of zero-rated supply' as 9 lakhs and 10 lakhs, which will help the officer to understand better.

AI Summary

Refund procedure: respond to RFD-08 within the prescribed period to justify export turnover for refund. The officer issued FORM GST RFD-08 querying admissibility of the refund; the applicant must file FORM GST RFD-09 within the prescribed period, stating that the sole turnover is the export of services and that the one lakh receipt timing difference does not change the refund amount or affect input tax credit, and providing a table comparing refund calculations on both reported turnover and amounts received.