Refund of ITC of Expoer of Service without payment of Tax

[Rahul Chachan]

Refund filed for FY 2021-22 with turnover of Rs. 10 lac (5 invoices of Rs. 2 lac each). Collection recd till March 2022 was Rs. 9 lac and balance 1 lac recd in May 2022. In refund application we have mentioned service turnover Rs. 10 lac. In Statement -03, all 5 invoices of Rs. 10 lac are shown with payment recd of Rs. 10 lac in refund applition of FY 2021-22.

Officer raised query in RFD-08, saying turnover is not as per Rule 89(4)(D) and in Statement -03 for FY 2021-22 we have also shown FIRC detail of Rs. 1 lac recd in May 2022.

What detail of turnover and consideration should i mention in Statement -03 of FY 2021-22 ?

Now as i reported wrong details what option do i have ? Although, change in turnover will not make any differene in refund amount of ITC as no other turnover is there.

[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-08 Notice 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.

[Kapil Gupta]

Dear Rahul ji,

As per rule 89, refund of IGST paid on export of services can be claim when the payment has been received from customer against such services.

In your case, 9 lacs received in FY 21-22 then you have to mention only those invoices which pertains to the payment of such 9 lacs only in statement 03 at the time of filing of refund for fy 21-22. For balance Rs. 1 lac which you have received in May 2022 will be shown in refund application for may 2022 only.

Calculate refund according to 9 lac only and file your reply, the refund will be sanctioned proportionately.

AI Summary

User Advised to Correct GST Refund Application Turnover for FY 2021-22, File Reply in FORM GST RFD-09 A user inquired about a discrepancy in their Goods and Services Tax (GST) refund application for the fiscal year 2021-22, where they reported a service turnover of Rs. 10 lakh. An officer questioned this, noting a Rs. 1 lakh payment received in May 2022. Respondents advised correcting the turnover in Statement-03 to reflect Rs. 9 lakh for FY 2021-22 and showing the Rs. 1 lakh in the May 2022 application. They suggested filing a reply in FORM GST RFD-09 to address the officer's notice and ensure the refund calculation aligns with the correct turnover.