If you live in India and plan to spend money on goods or services, there’s an extra step you’ll have to do before you can pay your bill — but the GST refund process makes it worth your time! GST refers to Goods and Services Tax, a new form of taxation India has tested since 2017.

Understanding how to get a GST refund in India cannot be evident, but once you do it, You’ll be left wondering how you managed without it. With this guide, you’ll learn how to apply for and obtain a GST refund in India and what to watch for if you are still determining if you qualify.

What is a GST refund?

A Goods and Services Tax (GST) refund is when you are credited with the amount of tax paid on certain purchases. It happens if you buy certain goods unavailable in your state or outside the country. For example, if you’re buying goods from an e-commerce site and they don’t ship to your state, you’ll be given a GST refund for what you spent and what it would have cost in your state differed. You will also get a GST refund for items imported into the country. These can include clothes, cosmetics, and furniture.

Who is eligible for a GST refund?

If you’re not an Indian citizen, you’re not eligible for a GST refund. If you have Indian citizenship and your goods were exported out of the country, they’re exempt from taxes. If you’re an Indian citizen and your interests were shipped out of the country, and their value is over one million rupees, then they’re also exempt from taxes. Follow these steps to learn how to get a GST refund in India.

How to apply?

If you’re leaving India, you can get a refund of the money you paid as Goods and Services Tax (GST) on any goods you’ve bought from shops. You can also request a refund by submitting an application at the airport after arriving in your destination country. You’ll need to complete an e-way bill form and attach it to the packing slip of your purchase before checking out.

What are the documents required for a GST refund?

Documents required for a GST refund are:

• A copy of the invoice from the supplier, along with the buyer’s name and address
• A copy of the invoice from the recipient with his name and address
• The tax paid challan (ITR-4)
• The copy of the challan (ITR-4) that has been submitted to the Department of Income Tax
• The payment slips or bank account statement
• A photo ID card issued by the Indian government, such as Aadhaar, PAN card, Voter ID card, Passport, and Driving License.

When the GST refund will be received?

If you file your return online, the refund will be credited to your account within ten working days. If you have filed your return offline, the refund will be credited to your account within 15 working days.

THE CLOSING STATEMENT

India’s Goods and Services Tax (GST) is a tax levied on the supply of most goods and services. It replaced numerous taxes imposed by the central and state governments, such as excise duty, service tax, sales tax/VAT, octroi, and entry tax, among others. The GST has five broad tax slabs ranging from zero to 28 percent.

This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.