Refunds of GST
Refund refers to an amount that is due to the taxpayer from the tax administration.
According to section 54 of the CGST Act, 2017, any Business entity claiming refund of any tax and interest, if any, paid under GST Act, on such tax and/or interest paid by him, can make an application before the local jurisdictional authorities before the expiry of two years from the relevant date. If there is any balance available in the electronic cash ledger or electronic credit ledger they can claim such refund in the return furnished under section 39. A specialized agency or organization which is defined under the act such as the United Nations Organisation (UNO) or any Multilateral Financial Institution and Organisation notified under the United Nations (Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries or any other person or class of persons, as notified under Section 55 under GST Act, they are entitled to a refund of GST paid by them (e.g Tax paid on inward supplies of goods or services or both), may make an application for such refund, in such form and manner as may be prescribed under GST Act, before the expiry of six months from the last day of the quarter in which such supply was received. However, the time limit has been extended vide Notification No. 20/2018-C.T., dated 28-3-2018, in the exercise of the powers conferred by section 148 of the said Act, the Central Government, has allowed the persons notified under Section 55 to file refund application before the expiry of 18 months from the last date of the quarter in which such supply was received.
