How to Claim GST Refund & Apply for GST No. Cancellation

GST refund claim and GST No. cancellation are 2 important aspects that require awareness on part of GST registration holders. Both aspects are covered here.

How to claim a refund under GST 
Often, it happens that due to errors in GST return filing or tax payments, the persons registered under GST pay more tax than required. In such cases, they have the option to claim a refund by filing an application for the same and specifying the reasons. Refund of any tax, interest, penalty, fees or any amount paid by him can be claimed.

1. Refund under GST is available in the following cases: 

• Excess balance in Electronic Cash Ledger 
• ITC on the export of goods and services without payment of tax
• Supplies made to SEZ unit/ SEZ developer with or without payment of tax 
• ITC accumulated due to Inverted tax structure 
• Refund by the recipient of deemed export
• Export of services with payment of tax 
• Tax paid on an intra-state supply which is subsequently held to be inter-state supply and vice- versa
• Refund by the supplier of deemed export
• Excess payment of tax 
• Any other ground of reason 
• Assessment or Provisional assessment or Appeal or any other order.

2. Time limit for making refund application:

The application can be made within 2 years from the relevant date. (Different “Relevant date” are provided under the GST Act for different cases of refund).

3. Application form for claiming refund:

It is “FORM GST RFD-01”. (except for refund of IGST paid on goods exported out of India).

4. Procedure: 

• Login to GST portal
• Go to Services> Refund> Application for Refund 
• Select the Refund Type and click Create 
• Fill in the details asked for, according to the type of refund and other details like the amount of refund, Bank account no., etc. Upload supporting documents, if required
• Select the declaration checkbox 
• Select the name of Authorized signatory and proceed 
• Click on either “File with DSC” or “File with EVC” [In case of DSC, select the certificate and sign while in case of EVC, enter the OTP sent to the registered mobile no. and e-mail id of the authorized signatory and Verify]
• Once the application is successfully filed, ARN (Application Reference Number) is generated. You can download the ARN receipt for your reference.
• ARN can be used to track the refund application status.

5. An acknowledgement shall be made available to the applicant in “FORM GST RFD-02” through the portal electronically, indicating the date of filing of the claim of refund and the period prescribed for issuing the refund order (i.e. 60 days) shall start from the date of filing the claim of refund, as indicated.

6. Any deficiencies in the refund application shall be communicated to the applicant in “FORM GST RFD-03” through the portal electronically and the applicant is required to file a fresh refund application after rectification of deficiencies.

7. The proper officer grants provisional refund making an order in “FORM GST RFD-04”, sanctioning the amount of refund due on a provisional basis.

8. Where the proper officer is satisfied with the amount of claim of refund, he makes an order in “FORM GST RFD-06”, sanctioning the amount of refund after adjusting the outstanding demand (if any) from the applicant and issues a payment order in “FORM GST RFD-05”.

Also Read: GST Annual Return: Rules, Due dates & Process

How to apply for GST number cancellation?

GST number cancellation means cancellation of GST registration. It can be cancelled either by the proper officer or by the registered person (including his legal heirs) through an application.

Cases in which a registered person or his legal heir can apply for GST registration cancellation:

1. Where the business is discontinued or transferred fully (for any reason including death of proprietor), amalgamated with other legal entity, demerged or otherwise disposed of; OR 
2. Where there is any change in the constitution of the business; OR 
3. Where the taxable person is no longer liable to be registered under the GST Act (except when voluntarily registered).

*In case of Voluntary registration under GST, application for cancellation can be made only after one year from the date of registration.

Procedure to apply for GST No. Cancellation- For registered persons who have not issued any tax invoice.

• Login to GST portal “www.gst.gov.in” 
• Go to Services> Registration> Application for Cancellation of Registration 
• Enter the details asked for in the application including the reason for cancellation
• Select the declaration checkbox 
• Select the name of Authorized signatory and Place of making the declaration 
• Click on either “File with DSC” or “File with EVC” [In case of DSC, select the certificate and sign while in case of EVC, enter the OTP sent to the registered mobile no. and e-mail id of the authorized signatory and Verify]
• DSC is compulsory for LLP and Companies 
• Once the application is successfully filed, acknowledgement is sent 
• Application status can be tracked from the portal itself.

Also Read: GST Refund Process: A Comprehensive Guide

Procedure to apply for GST No. Cancellation- For registered persons who have issued a tax invoice:

1. Application form for cancelling registration: It is “FORM GST REG-16”. 
2. Also, submit the following details in the application-
   • Inputs or semi-finished goods or finished goods or capital goods held in stock, on the date from which cancellation is asked for;
   • Liability thereon;
   • Details of payment made against such liability.
3. Submit documents, if any, in support of such cancellation at the portal. 
4. Submit all the above within 30 days of the occurrence of the event that warrants the cancellation. 
5. Once the application for cancellation has been filed, registration shall be suspended till the completion of cancellation proceedings. No taxable supply should be made during this period.
6. During the period of suspension, the applicant is not required to file any return under the GST Act. 
7. Where the proper officer is satisfied with the cancellation of GST no., s/he shall issue an order within 30 days of the date of application and direct the applicant to pay arrears of tax, interest or penalty.