All about gst payments and refunds.

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After 01/July/2017 government needs two returns to be filed by the GST users and those are returns are (goods and service tax return 1 and goods and service tax return 3B). In GST return 1 the supplier need to report their whole sale of the particular month and in the GST return 3B they have to pay tax on their profit and can claim input tax credit as well.

Now let’s know about the all the payments and refunds which we need to pay or can get. First of all let’s focus on the types of payment which we need to pay.

Payments

The supplier pay tax to the government is divided between following three parts.

IGST (Interstate goods and service tax) = this tax should be pay when the supplier making supply in another state. Example: – the fruit seller selling their fruit from Delhi to Kolkata then the he have to IGST on the sale.

CGST (central goods and service tax= this tax should be pay when the supplies made to within the state but the tax goes to central government. Example: – If the supplier sells the fruit from Delhi to Delhi then he has to pay CGST on sale.

SGST (state goods and service tax) = this tax should be pay when the supplies made to within the state but the tax goes to state government.

CIRCUMSTANCESCGSTSGSTIGST
SOLD THE GOODS FROM DELHI TO MUMBAINOT REQUIREDNOT REQUIREDREQUIRED
SOLD GOODS FROM DELHI TO DELHIREQUIREDREQUIREDNOT REQUIRED
SOLD GOODS FROM DELHI TO DELHIREQUIREDREQUIREDNOT REQUIRED

REFUND

Refund means getting your extra paid amount to government which you have paid more than the system computed liability. The government has already set up the time limit to claim the GST refund once you missed that you can’t claim that again. Let’s have a look in the broad way that when we can claim the refund.

These are some of the reason of claiming the refund.

  • Finalization of provisional assessment
  • tax refund for international tourist
  • when the output being tax exempt or nil rated
  • when the case is on the rebate and refund
  • tax paid refund on purchase made by embassies or UN bodies

Now with the following simple example we will be trying to under the matter of refund. Suppose Mr. XYZ is a supplier and he sold the goods and will be eligible to pay tax of 50000Rs but by mistake he paid tax of 5lakh so now as he made excess payment of 4.5lakh he can claim the this amount as refund. And the time limit to claim refund is 2 years from the date when the payment has made.

How to claim the refund

If you want to claim the refunds then do fill the form RFD 01 within 2 years from the day when payment has made. And the form RFD 01 also certified by the charted accountant.

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