GST RFD-01 Applicability and Prerequisites

To claim a refund the government has introduced several GST refund applications, one such application form is GST RFD-01. In this blog, we will discuss GST RFD-01 applicability and prerequisites.

What is GST RFD-01?

GST RFD-01 is a type of GST refund application form that has to be furnished by the taxpayer electronically. Before the introduction of GST RFD-01, the taxpayer used to file a refund application form offline using GST RFD-01A that has now been disabled on the GST portal.

GST RFD-01 Applicability

The taxpayer can claim the following refunds using GST RFD-01:

1. ITC that is unutilized in case of exports without payment of tax
2. IGST paid on export of services with payment of tax
3. ITC that is unutilized in case of supplies made to SEZ Unit/SEZ Developer without paying IGST
4. ITC that is unutilized in case of supplies made to SEZ Unit/SEZ Developer with IGST
5. Refund of ITC that is accumulated in case of Inverted Tax Structure 
6. Deemed export supplies Refund
7. E-cash ledger excess balance
8. Refund in case of excess payment of tax
9. Refund due to any provisional assessment, appeal, or any other order
10. Refund in case of any other reason.

GST RFD–01 Non-Applicability

Here are the situations when a taxpayer cannot apply for GST RFD-01:

1. When the goods are exported by paying the export duty
2. Persons who are notified such as the UN or other embassies 
3. Casual Taxable Person
4. Shipping bill is considered as the refund application in case if the goods or services are exported after paying IGST
5. Non-Resident Taxable Person
6. If a taxpayer has opted drawback scheme

Format of GST RFD-01 Form

GST RFD-01 Prerequisites

Here is the list of prerequisites for filing GST RFD-01: 

1. The taxpayer can claim INR 10,000 as a minimum amount of refund via GST RFD-01. This limit is applicable for each tax head independently and not in total.
2. A taxpayer can just choose one bank account from the list of bank accounts given by the taxpayer at the time of applying for GST REG-01. 
3. If a taxpayer has furnished GSTR-1 and GSTR-3B for a relevant month/quarter on/before the due date, he/she can apply for GST RFD-01.
4. A taxpayer group and file a refund application for a month/quarter or subsequent months/quarters. It shall be noted that the GST RFD-01 application cannot be spread across numerous financial years. 
5. The taxpayer needs to file GST RFD-01 sequentially. Let us understand this with the help of an example, if a taxpayer has filed GST RFD-01 for Jan 2022, he/she cannot furnish GST RFD-01 application for Dec 2021. 
6. When Form GST RFD-01 is filed, an ARN is created and this date of creation is considered as the date of GST RFD-01 filing. 
7. In case if there is any deficit, the GST officer issues a memo. In such cases, the taxpayer needs to file fresh GST RFD-01 for a similar tax period. It shall be noted that for this new GST RFD-01 a new ARN is generated.

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