How to File RFD-01 and RFD-01A?

All taxpayers can apply for a refund using form RFD-01/RFD-01A. The refund is possible only when the figure of refund crosses ₹1000. RFD-01 is used for seeking a GST refund for a variety of reasons. RFD-01 is an application that must be e-filed on the GST portal (gst.gov.in/) for claiming refunds of cess, taxes, and interest paid in the case of zero-rated supply. It is also used for seeking refunds of unutilised Input Tax Credit (ITC) kept in your Electronic Credit Ledger due to the Inverted Duty Structure under GST. 

Another purpose for e-filing RFD-01 on the GST site is to demand a refund of the excess cash paid into the Electronic Cash Ledger balance. The RFD-01 is widely used in online refund processing under the GST law. RFD-01A is a form that is filed for manual processing of refunds in certain cases. RFD-01A was created as a temporary solution until the online facility for claiming refunds was completed. RFD-01A is regarded as an imitation of RFD-01.

Did you know?

RFD-01A was introduced as a replica of RFD-01 till the online process of claiming refund under GST could be started.

Use of RFD 01 and RFD 01A for Various Refunds

The following type of refunds can be obtained by filling form RFD 01:

1. If there is any excess amount in Electronic Cash Ledger
2. If tax has been paid in excess erroneously
3. Refund due to Inverted Duty Structure (IDS occurs when taxed on the final product is lower than a tax on input leading to inverse accumulation of ITC)
4. ITC on Export of Goods under Letter of Undertaking (LUT) or Bond without tax payment
5. Integrated Goods and Services Tax (IGST) which was paid on Zero Rated Supplies - Exports of service was with tax payment
6. Refund in case of Deemed Exports
7. If any provisional assessment or appeal or any other order was done due to which refund arose
8. Tax paid as interstate supply, but in actual it was intrastate supply or vice versa.

Exceptions of not filing RFD 01 and RFD 01A

The two forms should not be filed in the following cases:

1. If you are a non-resident taxable person or casual taxable person
2. If export duty has been paid on export of goods
3. UN or embassies and notified individuals
4. Export of goods and services in cases wherein IGST is paid, and shipping bill is considered the refund application.
5. Cases in which the supplier has obtained duty drawback of the SGST/CGST/IGST Paid on such supplies

Important Points before filing refund application-

• In the event of zero-rated supplies and deemed exports, the applicant must have filed the GSTR-1 and GSTR-3B for the month in which the supplies were made where the application is made for refund of tax paid or ITC without payment of output tax.
• Filling out GSTR-1 for the applicable Table 6A for exports, Table 6B for supplies to SEZ units/SEZ developer, and Table 6C for deemed exports should be done with care. In addition, GSTR-3B must be completed in Table 3.1(b) and filed in the same manner as GSTR-1.
• The refund processing will be delayed if there is a mismatch between the returns. The applicant must provide a list of the invoices against which the refund is sought.
• Apart from this, a Certificate by a Chartered Accountant/ Cost Accountant is also required to be submitted in various cases.

Also Read: What is GST Amnesty Scheme? GSTR-3B Late Fee Relief, Benefits, Eligibility, and Last Date

How to file GST RFD 01 Online?

The procedure to apply for a refund is as follows:

First of all, the person will have to log in to their GST Portal- gst.gov.in/

1. After login, there will be a refund tab where the option for the refund application will be there.

2. Select the refund type, fill in the needed information, and submit the form. An application reference (ARN) number would be generated on such a basis.

3. Take a printout of the generated ARN Number.

4. You can now submit the printout, ARN number, and application annexures to the appropriate jurisdictional goods and services tax officer.

For refund processing, the officer can be UT, state tax authority, or central tax authority, as mentioned, and will be notified via the RFD-02 declaration.

Persons who must file the RFD-01 and RFD-01A

In the case of deemed exports, either the supplier or the recipient might apply for a refund of taxes paid. Both the supplier and the recipient are ineligible to request a refund for a separate invoice of deemed exports. If the supplier decides to file for a GST refund, they must first acquire information from the recipient that they will not be claiming the return for that particular supply.

Time Limit for filing RFD-01 and RFD-01A

The application for a refund must be made within 2 years from the appropriate date by filing RFD-01 and RFD-01A. However, Form RFD-01 has to be filed every month in certain cases. These cases are-

1. Refund due to deemed exports
2. Refund due to zero-rated supplies
3. Refund due to inverted duty structure
4. Refund of excess balance in electronic cash ledger

RFD-01 can be used for several tax periods as well. Multiple tax periods in one financial year can be combined into a single refund application.

In the case of delivery of products to SEZ units or SEZ developers, a supplier must complete this form once the receipt of goods is certified by authentication from a designated officer of that zone. Once proof of service receipt is validated by authentication from an authorised zone officer, a supplier of services to SEZ units or SEZ developers must submit this form.

Format of Form RFD-01 and RFD-01A

There are a total of 4 parts in the format of Form RFD-01 and RFD-01A, which are given below-

1. Basic Details

2. Verification and Declarations

3. Annexure-1

4. Annexure-2

All these parts are given in detail below:

1. Basic Details-

There are a total of 10 Serial Numbers, which are as follows-

S.No. 1- GSTIN/Temporary ID

S.No. 2- Legal Name

S.No. 3- Trade Name if any

S.No. 4- Principal Place of Business

S.No. 5- Tax period for which refund form is filed

S.No. 6- Amount of CGST, SGST, and IGST, interest or cess if any

S.No. 7- Grounds on which refund has been claimed

S.No. 8-  Details of the bank account in which refund is credited - Auto Populated field

S.No. 9- Documentary Evidence to be submitted in Annexure 1 for the grounds on which refund is claimed- If Yes, then select Yes otherwise, select No.

S.No. 10- Verification - Signature of the authorised person confirming that the information is correct

S.Nos 1 to 4 are auto-populated

The format for Form RFD-01A is the same as above except for S.No. 7 to 9.

2. Verification and Declaration

Certain declarations are required for some types of refund claims made by taxpayers. The declarations must state that the tax burden falls only on the refund claimant and that no one else can make a claim.

3. GST Annexure-1

Declarations in the form of statements need to be submitted as documentary evidence for different refund claims. In total, there are 11 such statements for different types of refunds.

If the refund amount falls below ₹2 Lakh, then documentary evidence shall not be required. Only a self-declaration that the recipient does not claim ITC benefit.

4. Annexure-2

Certification is also required by a Chartered Accountant/Cost Accountant, which must be annexed along with the refund form.

How to calculate the refund amount?

Generally, the amount of refund comprises tax, interest, or cess paid as per the invoice. If the invoice details are changed, the refund amount will be calculated based on the changed value.

If there is a case of a refund of accumulated ITC, then it will be calculated as follows:

1. When zero-rated supplies are made through LUT/Bond, i.e. without tax payment-

The formula is as follows-

The net amount of ITC x Turnover of zero-rated supplies of goods and services/Adjusted Total Turnover

The net amount of ITC = Total Input tax credit on inputs and input services

Turnover of zero-rated supplies of goods and services = It is as follows -

Turnover of zero-rated goods is the lower of the value of -

Goods supplied without tax payment for the relevant period by issuing a bond/letter of undertaking for the applicable period or 1.5 times the value of products sold domestically by the same or a comparable provider, as declared by the supplier.

Turnover of zero-rated supply of services includes the value of services made through LUT/Bond without tax payment.

Turnover includes the advance obtained in the prior period for which services are now given and is reduced by the advance received for which services are yet to be provided for the relevant period in the event of zero-rated suppliers.

Adjusted Total Turnover- Total Turnover in the state or union territory, including both zero-rated and non-zero-rated supplies of goods and services

2. In case of an Inverted Tax Rate Structure - When the tax rate on inward supplies is more than the rate on outward supplies.

The formula is as follows-

{The net amount of ITC x (Turnover of inverted rated supply of goods and services/Adjusted Total Turnover)} - Output tax payable on the inverted rated supply of goods and services.

The net amount of ITC = Total Input tax credit availed on inputs used to supply inverted rated goods and services during the relevant period.

Turnover of inverted rated supply of goods and services- Turnover for that supply of goods and services under this category of the inverted rate structure.

Adjusted Total Turnover- Total Turnover in the state or union territory, including both zero-rated and non-zero-rated supplies of goods and services, excluding exempt supplies. 

Output tax payable on the inverted rated supply of goods and services - Tax liability on inverted rated supply of goods and services.

What happens after filing the refund application?

1. Upon the successful filing of  RFD-01, the electronic credit ledger of the person who has filed the refund will be debited, and a debit reference number will be generated.
2. The GST officer will verify if the application is complete or not within 15 days. If anything is missing, it will be informed in the RFD 03 Form, and a new application will be required.
3. The scrutiny will not apply in the case of a refund claim of a balance in an electronic cash ledger.
4. An acknowledgement in RFD-02 will be made available on the GST portal after a successful refund application, indicating the Application Reference Number (ARN), duration of the refund claim, and date of filing RFD-01.
5. The GST officer has 60 days from the date of receipt of RFD-02 on filing a complete refund application to issue a refund claim sanction order.

Also Read: How To File Nil GSTR 1 Return on GST Portal

Conclusion

Form RFD-01 and Form RFD-01A are two of the most important forms as they help to obtain a refund under GST. However, a thorough knowledge is required for filing these forms and calculating the amount of refund. The process is a bit complex, but if it is done as per proper steps, a refund can be easily applied for. Hopefully, the article will help you understand the full process relating to refund through Form RFD 01 and Form RFD 01A.

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