CBEC explains that refund provisions under GST regime aim to streamline and standardize the refund procedures.
GST law provides for situations leading to refund claims which, among other things, includes:
- export of goods / services,
- supplies to SEZ units and developers,
- deemed exports,
- inverted duty structure,
- pre-deposits and refund vouchers for taxes paid on advances against which goods / services have not been supplied.
While refund claim has to be filed within 2 years from relevant date, GST law allows provisional refund of 90% of total refund claim in case of zero rated supplies.
Every refund claim (barring specified exceptions) will have to satisfy the test of unjust enrichment. However, if such claim is less than Rs. 2 lakhs, then a self-declaration of applicant will suffice to process the same.
Claim, if in order, has to be sanctioned within a period of 60 days from date of receipt thereof and interest along with refund will become payable if the said period is exceeded.