Top 10 Cases When GST Can Be Claimed

India, a large and developing country, has traditionally used the previous taxation system, which was more complicated, had more layers, and so on. In India, there are two sorts of taxes: direct and indirect.

Direct tax is paid on income and profits, whereas indirect tax is paid on products and services. Before the implementation of the GST, we used the VAT system. We usually marvel when we see a restaurant bill that includes VAT, Sales tax, Service tax, Excise charge, and so on. Most people are perplex until India’s most significant tax reform, GST takes effect.

What exactly is GST?

GST (Goods and Services Tax) was India’s most significant tax reform. The Goods and Services Tax (GST) is an indirect tax that streamlines the existing taxation structure. It is essentially the total of all indirect taxes.

GST was approved by parliament in 2017 and went into effect on July 1, 2017. Quite some time. After all, no indirect taxes are require to be paid, making it a more straightforward taxation system. The GST tax system has been adopt in over 150 countries.

Before we go into how to get a GST refund, let’s go over some GST fundamentals.

Hence you may learn a GST course at IIPTR Institute, which offers the finest available course that provides practical training in all important elements of GST, including registration, implementation, and other compliances.

Types of GST?

Forget those bundles of tax, we have got the new tax reform divide into 4 simple categories:

  1. CGST
  2. SGST
  3. IGST
  4. USGT

The Central Products and Services Tax (CGST), sometimes known as the Central Goods and Services Tax, is the portion of the tax levied on intra-state transactions involving goods and services. The central government collects the proceeds of the goods and services tax.

The SGST, also known as the state goods and services tax, is a tax levied on intra-state sales of goods and services. Thus the state government collects money in the form of taxes.

The IGST, also known as the integrated goods and services tax, is a portion of the tax levied on interstate transactions of goods and services. The central government collects the sum here.

The Union Territory Goods and Services Tax (UGST) is a tax levied on exchanging goods and services between two or more union territories. The union territory government collects the tax income.

We, the ordinary people, are ecstatic when we consider or have the opportunity to claim anything. It might be any form of claim, such as a life or health insurance claim. But we were relieve to learn that GST could also be claim.

GST can be claimed in 2 ways:

GST can be claimed as an input tax credit (ITC) in cases.

In the next paragraph, we will discuss how input tax credits and cases can assist you in claiming a portion of the GST paid.

Tax credit for input ( ITC)

What is the first thing that comes to mind when you hear the word ITC? Sonar Bangla ITC? Aside from that, jokes. The input tax credit is abbreviate as ITC. An input tax credit is a portion of the tax paid on purchasing inputs used to produce outputs.

Let’s look at an example to acquire a better understanding:

Rajiv is a mobile phone maker. To build a mobile phone, he would need batteries, hardware, and other components. He paid Rs 500 in tax to purchase the ingredients. He produced the cellphone after acquiring it, and the total tax was Rs1000. So, would Rajiv have to pay a tax of Rs 1000?

No! This is where an input tax credit comes into play.

Rajiv needs to pay Rs 500 as tax using the input tax credit method since the 500 spent on the input may be claim. Thus this strategy ensures that no double taxation occurs

Who is eligible to get ITC?

  • Only if he is a registered GST dealer may a business or an individual claim ITC. Only if the following requirements are met may an input tax credit be claimed under GST:
  • The buyer must have a valid tax invoice, debit note, or other documentation the vendor provides.
  • The buyer must have got the purchased goods or services.
  • The supplier must have lodged the GST return.
  • The tax collected from the buyer must have been paid to the government somehow.
  • If the items are deliver in installments, ITC can be claim only after the last and final lot is delivered.

Hence Input tax credits can only be claim for commercial reasons. ITC cannot be claim if products or services are utilized for personal use, exempt supplies, etc.

Do you need any documents?

Specific documentation is necessary to claim the input tax credit, which is stated below:

Invoices supplied by the provider.

  • Supplier’s debit note (if applicable)
  • Customs departments may offer a bill of entry or other comparable documents.
  • When the total amount is less than Rs 200 or the reverse charge is applicable under GST law, an invoice, similar to a bill of supply, is sent.
  • Input service distribution (ISD) documents might be invoices or credit notes.
  • The suppliers issued a bill of supply.

The time limit for claiming ITC.

There is a time limit for claiming ITC. ITC can only be claim on tax invoices or debit notes of supply that are less than a year old. In other circumstances, the final date to claim the tax credit will be the earliest of the following dates:

  1. Before filing the GST return for the September month following the conclusion of the fiscal year.
  2. Before submitting the yearly return for the period the tax invoice or debit note relates to.

How to Get the Maximum Credit.

  • There are various methods for claiming the maximum credit allowed under GST laws:
  • You should maintain regular communication with your vendors.
  • You must specify the tax payable on a reverse charge basis.
  • Always keep your books of account up to date and error-free.
  • The statements should be reconcil regularly.
  • To verify that vendors are following the e-invoicing guidelines

Considering these factors, one may get the most out of it.

2. Top 10 cases in which GST can be claimed.

The GST council has provided us with a very straightforward and effective procedure for claiming the GST refund, which will greatly assist the firm in operating without the frozen working capital. The full GST refund claim process takes place on the GST web platform.

The following are the circumstances in which a GST refund may be claim:

  • Goods or services are export.
  • Provision of goods or services to SEZ units and developers.
  • Considered exports
  • Purchased by the United Nations or its embassies.
  • If you pre-deposited your tax credit, you will receive a refund.
  • If you have paid too much tax by mistake.
  • After finalizing the provisional assessment, a refund based on the verdict of any tribunal, appellate, etc.
  • Amount of tax paid in advance for which no goods or services were provided.
  • Refund of CGST and SGST paid by declaring inter-state transactions intra-state transactions.
  • Refund of accrued tax based on duty structure other than completely exempted transactions.
  • Refund to overseas travelers who paid GST on products and services purchased in India and transported abroad while on vacation.

These are the top cases under which GST can be claim.

The Time frame for claiming the GST refund.

To be eligible for a GST refund, the applicant must make a refund claim within two years of the filing date. Hence if the claim is in the queue, the reimbursement amount must be sanction within 60 days of receipt.

If the claim is in the queue, the interest rate on the suppressed refund should be 6%, and the interest rate on the delayed refund (beyond 60 days) should be 9%.

GST refund claims:-

Based on exports: The majority of the refund is based on exports. All exports (goods or services) and supplies to SEZ units (special economic zones) have been classify as zero-rated supplies since the supplies are produce at zero percent; one can claim a tax refund.

On purchases made by the UN or its agencies: Purchases made by the UN or its agencies may be free from taxation under international responsibilities. It is organize on the route to the charge refund process. Section 55 of the CGST statute specifies that the United Nations or its embassies may obtain a refund of the tax paid on account of purchase. However, the claim must be lodge within 6 months after the last day of the quarter in which the transaction occurred.

International tourists: Under Section 15 of the IGST Act, an international tourist who purchases goods in India may seek a refund on the integrated tax paid if they are not permanent residents of India and do not remain for more than 6 months.

Extra tax paid: If you pay the tax by mistake instead of paying only CGST and IGST, you can recover the excess amount paid during the refund procedure.

Documentation is necessary.

  1. An individual must submit an invoice with a statement indicating the number and date of shipping bills of export to get a GST refund on exports.
  2. To receive a GST refund on supplies to SEZ units, an applicant must provide clearance from the officer, which clarifies the receipt of goods or services in the SEZ. According to a disclosure from the SEZ entities, the tax credit has yet to be claime.
  3. Thus the statement with the invoice data in the GST return format must be file to refund the accrue tax.

Thus there will be no return of unutilized tax credits on CGST and IGST paid for the delivery of services for constructing buildings, offices, complexes, etc. Also, no reimbursement if the total tax rate on inputs exceeds the total tax rate on outputs.

  1. For GST refunds based on order, the reference number supplied for the refund procedure should be present along with a tax invoice.

Certificate of Chartered Accountancy for GST Refund:

If the refund exceeds Rs 2 lakh, a certificate from a Chartered accountant must be produce in addition to the other documentation stated above.

The procedure for claiming the GST refund.

Here’s a step-by-step method for claiming your GST refund:

  • Visit the GSTN web page and fill out the refund claim form.
  • An acknowledgment number will be sent to you through email or SMS.
  • The ledgers will be reconcile, and the carry-forward tax credit will be decrease.
  • The authorities will analyze or audit the application and the papers presented within 30 days of submitting the refund application.
  • The tax amount will be credit base on unjust enrichment. The refundable amount will be donate to the consumer welfare fund if the applicant does not qualify for unjust enrichment.
  • Before sanctioning the refund amount, a pre-audit procedure may be perform to identify whether a person has claimed for more than a predetermined amount.

Thus, these are the steps to claim the tax refund.

Unjust Enrichment.

Unjust enrichment is a notion in which company owners split the tax with the ultimate customers because GST is an indirect tax that consumers must face. As a result, passing the unjust enrichment test is essential.

This notion, however, does not apply to refunds for accumulated tax, exports, excessive tax, supply to SEZ units, and so on. Thus it is require for various reasons.


Obtaining a GST refund might be complicated, but if you follow the steps carefully, even a layperson can do it. For the uncomplicated procedure of refund claims, there should be an appropriate submission of documentation and no errors. These are some of the scenarios and techniques for obtaining a GST refund.


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