Types of refund
- Export of goods or services under LUT without payment of tax: refund of unutilised credit
- Export with payment of IGST: refund through the customs system for goods, and through the portal for services
- Inverted duty structure: tax rate on inputs higher than on outputs
- Excess balance in the electronic cash ledger
- Supplies to SEZ units and developers
- Tax paid on a transaction later found to be intra-state instead of inter-state, or vice versa
Process
- Eligibility check and computation under the prescribed formula.
- Preparing statements, invoices, shipping bills and foreign remittance proofs.
- Filing the refund application online.
- Replying to deficiency memos and show cause notices.
- Follow-up until the sanction order and credit to your bank.
Time limit
A refund must generally be claimed within two years from the relevant date set by the law for that type of refund.
Frequently asked questions
Do I need an LUT to export without paying tax?
Yes. File the Letter of Undertaking online at the start of each financial year.
Why are refunds rejected?
Common reasons are mismatches between returns and shipping bills, wrong formula, missing remittance proof and incorrect turnover figures.
Is interest paid on delayed refunds?
The law provides for interest if a refund is not granted within the prescribed time from the application.
This page gives general information about Agar & Co. and its services. It is not an advertisement or solicitation, and it should not be treated as professional advice. Rates, thresholds and due dates change from time to time.