As per Circular No.188/20/2022-GST dated Dec 27, 2022 clarified on few cases, where unregistered person claim refund under GST. ‘Refund for Non-Registered Person’ functionality has been made available on the GST portal. An unregistered person needs to get registration temporarily on the portal using his Permanent Account Number (PAN) for claiming refund.
Situations/Cases when unregistered person can claim refund under GST:
- An unregistered person entered into agreement with a builder for construction of flat/building, etc. and paid the amount either fully or partly along with the taxes. Later on, the agreements get cancelled due to non-completion, delay or any other reason. Further, time has been lapsed for raising credit note.
- An unregistered person taken the long-term insurance policies where 100% premium was paid at once along with GST. Later on, policy is terminated prematurely due to some reasons. Further, time has been lapsed for raising credit note.
Time period for claiming ITC refund:
An unregistered person will have 2 years’ time to claim refund from the date of issue of cancellation letter.
Refund filing Process:
- The unregistered person needs to obtain the temporary registration in the same state or UT in which supplier is registered.
- Department will do Aadhaar authentication of person making application.
- The Person needs to submit the bank details.
- An unregistered person will make application in FORM GST RFD-01 on the common portal along with statement 8 in pdf and other relevant supporting.
- Need to obtain a certificate from supplier. In certificate supplier will certify that he has paid the tax on the same and mention the invoice details. Also, supplier has not adjusted the tax by issuing the credit memo or neither claimed or will claim refund.
- For each separate applications for refund have to be filed in respect of invoices issued by different suppliers.
- If time period for issuing the credit note is not expired at time of cancellation of agreement, then no need to file refund application. The Supplier can issue credit note and make the 100 % payment including taxes.
Minimum refund amount
An unregistered person should not file an application if refund amount is less than Rs 1000.
Other points:
If the amount paid by supplier to an unregistered person is less than the amount paid at time of agreement, in such case tax refund will also be proportion to the amount paid by supplier.
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