Who can claim: Any person who has paid tax, interest, or other amounts under CGST may apply for a refund within 2 years from the relevant date.
Special cases:
UN agencies, multilateral institutions, consulates, and embassies can claim refunds as notified.
Refunds of unutilized input tax credit are allowed in specific cases:
Zero-rated supplies without tax payment
Credit accumulation due to input tax being higher than output tax rate
Not allowed if drawback or integrated tax refund has already been claimed.
Documentation: Refund applications require evidence, except for claims < ₹2 lakh, where a declaration suffices.
Procedure:
Proper officer verifies and orders refund; credited to Consumer Welfare Fund (Section 57) or directly to applicant in specified cases.
Provisional refund of 90% may be allowed for zero-rated supplies pending verification.
Restrictions:
Refund can be withheld if returns are not filed, dues unpaid, or in case of appeals, fraud, or malfeasance.
Interest on delayed refund (Section 56):
6% for regular refunds delayed beyond 60 days
9% if refund arises from final court/tribunal order and delayed beyond 60 days.
Minimum threshold: Refund < ₹1000 is not allowed.
Relevant date: Depends on type of supply—export, deemed export, zero-rated supply, judgment/order, etc.
Section 55: Refund in Certain Cases
Certain international organizations, UN agencies, consulates, or embassies may claim refund of taxes on notified supplies, subject to prescribed conditions.
Section 57 & 58: Consumer Welfare Fund
Fund creation: Fund is constituted for amounts refunded to eligible applicants, income from investment, or other receipts.
Utilization: For consumer welfare; accounts and records are maintained separately and audited.
