The Goods and Services Tax (GST) is a wide-ranging indirect tax that has taken the place of several indirect taxes in India. It is a unified tax imposed on the provision of goods and services throughout the country. GST has streamlined the tax system in India, making it simpler for companies to adhere to tax laws. One of the important aspects of GST is the refund mechanism, which enables businesses to claim a refund of taxes paid on inputs that are used to make taxable supplies. In this blog, we will provide you with a step-by-step guide to GST refund claims.
Types of GST Refunds:
There are primarily two types of GST refunds available:
- IGST Refund: This refund applies to exporters who have paid Integrated Goods and Services Tax (IGST) on their exports.
- Input Tax Credit Refund: This refund applies to businesses that have paid GST on inputs that are used to make taxable supplies.
Eligibility Criteria:
To claim a GST refund, a business must meet certain eligibility criteria. These criteria include the following:
- The business must be registered under GST.
- The business must have paid GST on inputs that are used for the purpose of making taxable supplies.
- The business must have filed all GST returns for the relevant period.
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