Under the law governing the GST and taxation, any and all supplies made to the United Nations, their agencies, foreign embassies and consulates are treated in line with any other supply. As a result, these agencies are taxed under the GST.
However, a special exception is made for such entities as the GST they pay is refundable. In order to claim a tax refund, the qualified organisations have to apply for a UIN under the GST. The full form of UIN is a Unique Identification Number. UIN holders need to follow a specific procedure of filing returns and invoicing in order to obtain a refund on the GST charged for supplies. Additionally, while claiming a refund, a specific set of documents needs to be provided.
What is UIN in GST?
The full form of UIN stands for Unique Identification Number. It is given to certain organisations in place of the regular Goods and Services Tax Identification Number (GSTIN).
Organisations such as multilateral financial institutions and embassies or consulates of foreign countries are eligible to get UIN. These organisations do not make any outward taxable income. Hence they are eligible to get a refund on the taxes that they pay on inward supplies during regular filling.
Difference between GSTIN and UIN
Under regulations governing GST, the GSTIN and UIN are two different types of identification codes. The Goods and Services Tax Identification Number (GSTIN) is provided to taxpayers who are regularly required to file GST returns. On the other hand, a Unique Identification Number (UIN) is provided to certain international organisations. This enables them to claim a refund on the taxes paid during the procurement of goods and services.
How to obtain a UIN?
- In order to obtain a Unique Identification Number, an organisation needs to file an application for the grant of a UIN under the GST.
- It is done through the Form GST REG-13.
- A registration certificate is then issued to the organisation within 3 working days upon the receipt of the application.
- This registration certificate is issued in Form GST REG-06.
- Please note that to successfully obtain UIN, an Organisation must be under the special category mentioned below.
The law governing taxation and GST states that the following organisations are eligible to obtain UIN:
- A multilateral financial institution.
- Specialized agency of the United Nations Organisation advised under the United Nations Act 1947.
- Embassies or consulates of foreign countries
These organisations are expected to apply for UIN in Form GST REG-13 if they want to avail the benefits of a UIN holder.
It is important to note that the term ‘registered person’ particularly excludes an organisation that has a Unique Identification Number. Therefore, under the laws governing GST, an organisation or institution having a UIN would be termed an unregistered person.
How to generate invoices for sales made to UIN holders?
When a registered organisation or institution provides services or goods to a UIN holder, it is imperative to mention the GST UIN of the recipient while issuing the appropriate invoice. This invoice is then to be uploaded in a regular manner, as it is for any other sales. Tax is to be charged at the regular GST rate applicable to the respective goods or services. The supplies should be considered provided, just as they are to any registered person under the regulations specified by the governing body of GST. The UIN holder can then claim a refund on this tax in their filings. Suppliers should not grant the UIN holder a taxless transaction.
Return filing for UIN holders
The required details of inward material are made apparent to UIN holders in Table 3 of the appropriate form, which is Form GSTR 11.
This detail of inward supplies is available on a monthly basis. GSTR 11 is an auto-populated form based on the details of outward supplies provided in Form GSTR 1 by suppliers. All UIN holders should ensure that they submit correct and accurate details. It is also important to submit the return by the 28th of the following month. Submitting the return on a monthly basis on time will be easier for the authorities to issue the tax refund in an appropriate and timely manner. When the return claim is not filed on time, it makes the claim invalid, thus preventing the UIN holder from claiming further returns.
How to File Refund Application
The GST law clearly states the steps involved in submitting the application by UIN holders, in order to obtain a tax refund. It is as follows:
- In Form GSTR-11, file a statement of inward supplies on a regular basis.
- File the refund application (Form GST RFD-10) to get tax return and its related benefits. This should be done after every 3 months. It is important to note that Form GST RFD 10 can only be submitted after the completion of the filing of Form GSTR-11.
- Prepare the documents that meet the conditions presented under the GST law and ensure that the letter of reciprocity issued by the Ministry of External Affairs has been followed.
- Submit the refund application manually alongside the necessary documents to the responsible Central Tax nodal officer.
The list of documents to be submitted is as follows:
- Legible copy of Form GST RFD-10
- Legible Copy of Form GSTR-11
- Statement of invoices
- Letter for each quarterly refund
- Purchase Certificate, if the refund of tax is on the purchase of goods
- Undertaking certificate, if the refund of taxes is on the purchase of services
- Copy of letter provided by the Ministry of External Affairs, regarding the principle of reciprocity
- Permission letter for refund of GST in regard to the purchase of a vehicle
Note: As per the clarification issued by the CBIC, UIN holders are required to submit the Form GSTR 11 and Form GST RFD-10 separately only for the specific quarters for which the refund claim is filed.
Centralisation of the Unique Identity Number
Rule 17(1A) of the Central Goods and Services Tax (CGST) 2017 says that the UIN granted to the organisation or institution would be valid all across India. This is convenient for organisations and UIN holders since it prevents them from having to obtain separate UINs for each state in India. Thus, as per the clarification provided by Rule 17 (1A), an entity needs to obtain just one Unique identification number, in order to operate all across India, regardless of state boundaries and regulations.
What is the last day for claiming a refund on purchases by a UIN holder?
A UIN Holder can only claim a refund through the GSTR 11. This form must be filed within 6 months of the quarter wherein the supply was received, in order to be valid. If a claim for a refund has not been made within this six month period, it will no longer be possible to make an application.
GST UIN is a 15 digit alpha-numeric code provided to those organisations which are exempted from paying taxes. This Unique Identification Number means that the UIN holder, or the organisation which has this number, falls under a special category of entities that are able to claim a refund on the taxes paid during the procurement of goods and services. We hope that this post has provided you with a clear roadmap on how to get GST unique identification number and the details regarding the process.
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