Option of refund in GST is not available in all the cases, refund is possible in following cases:-
- 1) Zero rated supply/ or Export: - Refund in GST is available if goods or services had been supplied to Special Economic Zone (SEZ), or in case of export of GOODS. IN both these cases rate of output GST is ZERO therefore Refund Option is Available.
- 2) Inverted Tax Rate:- in some cases it had been observed that rate of output GST is less than Rate of INPUT GST. Such cases are covered under Inverted tax Rate and Option of Refund is available in this case.
- 3) Purchase made by Embassy’s or UIN holder:- if purchases had been made by UIN holders then in such case they are permitted to claim refund of GST liability recovered from them.
Note:- Time Limit for claiming refund is 2 year from relevant Date.