Statement 3 in GST Refund Application Query

[Anil Mishra]

Dear Experts,

1. Law - Refund of ITC on export of services without payment of tax is to be filed on basis of payment received during the relevant refund application period. 

2. Query - However, Export invoice was reported in an earlier tax period (for e.g. July) but forex payment is received in in later period (for e.g. August). (RFD 01 for July already filed). Now in such cases, whether while filing RFD 01 for August, wouldnt statement 3 give error that invoice is not matching as per GSTR 1 of August?

[Deepanshu Garg]

No Sir, Statement 3 will not give any error in such a case.

Although the export invoice was reported in GSTR-1 of an earlier period (e.g., July), you can still include it in Statement 3 of RFD-01 for August, i.e., the period in which the foreign exchange realization has occurred. The GST portal allows such reporting, and no validation error will occur as long as the invoice details (invoice number, date, taxable value, etc.) exactly match the details furnished in the original GSTR-1.

This is in line with the refund mechanism, where the claim is based on receipt of payment, not merely invoice issuance.

[Raam Srinivasan Swaminathan Kalpathi]

When an export of service is reported in R-1/ 3B you apply for refund in RFD-01 upon realisation of moneys in foreign currency.  This export of services invoice in July must also have been included while uploading refund application for July.  Now that you have inadvertently omitted the July invoice, your option will be to file another refund application either manually as per Rule 97A or file a supplementary refund application under "Others" category for the month of July.  Thanks

[Shilpi Jain]

Also instead of filing refund application for every month you can see if it is beneficial for you to apply for refund for months clubbed together.

AI Summary

GST Refund for Export Services: Navigating Invoice Reporting Across Tax Periods with Flexible Payment Recognition A discussion forum explores GST refund application procedures for export services. The key issue involves reporting export invoices when forex payment occurs in a different tax period. Experts clarify that Statement 3 allows reporting an invoice in the month of payment realization, even if originally invoiced in a prior period. Practitioners recommend ensuring invoice details match original GSTR-1 submission and consider filing supplementary applications if needed.