REFUND OF TAXES REFUND Under Section 54 of

REFUND OF TAXES

REFUND Under Section 54 of the CGST Act, 2017 the Refund Rules, 2017 states that any person claiming refund of any tax and interest (if any) paid on such tax or any other amount paid by him, may before expiry of two years from the Relevant Date file an application electronically in Form GST RFD-01 through the Common portal, either directly or through a Facilitation Centre notified by the Commissioner.

Time Limit For Claiming Refund Provision to Rule 1 (1) of Refund Rules, the Provisions are as follows : 1. 2. 3. 4. 5. Refund from Electronic Cash Ledger Exports of Goods Supply of Goods to SEZ Refund Application in Respect of Supply of Service to SEZ Deemed Export

Procedure for Sanction of Refund 1. 2. 3. 4. 5. 6. 7. 8. 9. Manner of Filing the Claim Documents to be Attached Acknowledgement of Refund Claim Deficiency Provisional Refund Payment of Refund Amount to Applicant Sanction of Refund Claim Refund of ITC Interest on Delayed Refunds

Consumer Welfare Fund Section 57 of the Act provides that the Central or State Government shall establish consumer welfare fund. If the incidence of tax has been passed on to the other person by the applicant, the refund amount shall be credited to consumer welfare fund. The amount credited to the fund, shall be invested in the prescribed manner. Section 58 further provides that the government shall utilize the fund for the welfare of the consumer in accordance with the rules framed by the government. The funds can be used in the specified manner only.

Case Study Mr. Bharat runs a restaurant in Tamil nadu and delivers the products prepared by his restaurant by zomato, when he operate within the state, he am only operating as a delivery restaurant and hence charge 5% GST. However, when I sell on Amazon as a packaged item, I charge 18% IGST. I supply only using e-commerce platforms. My chocolate preparation when I sell within a state on Zomato, I charge 5% for preparation and 5% for delivery. When I sell my chocolate product Interstate on Amazon, I charge 18 % on product+delivery. My GST registration is Tamil Nadu based. For the business purpose I travel to nearby states and stay in different hotel in other states. Also, I have my kitchen unit in the state of Maharashtra. and I sell it based on the order received by me on Zomato platform. I am thinking of putting the warehouse in Gujarat and sell in the state of Gujarat based on the orders I will receive on Zomato in Gujarat. I will not have the manufacturing unit in Gujarat, only warehouse. In that case,

Questions 1. Does Mr. Bharat have to take GST in Gujarat also? 2. Should he charge different rates of gst for delivery within the state and interstate delivery of goods?

Answers 1. As you are selling through e-commerce operator, and you are having a warehouse in Gujarat. It will be treated as business establishment so you need to register in Gujarat also. 2. No, there should be a uniform rate of GST to be collected by all customer which is prescribed by the government.