GST Refund

Government has given the privilege to the United Nations, Embassies, all UIN entities, & other foreign bodies mentioned under Notification no. 16/2017- Central Tax dated June 28th, 2017, to claim a refund on GST paid by them.

The UN organizations & other foreign bodies are treated differently than all the other classes of taxpayers claiming a refund.

Their refund application forms are different, their GST return forms are separate & they hold a UIN or Unique Identification Number.

In this article, we have covered all these essential details in specific about the working of the GST refund process, and everything that you must know to claim a GST refund of the tax paid, as a foreign body.

What is GST Refund for UN Organizations & other Special Foreign Bodies?

The inward supplies received by the UN organizations and specified foreign bodies are exempted from taxes. Hence, if these organizations & agencies pay any GST on the inward supplies of goods, they can claim a refund of it.

The GST refund can be claimed on only inward supplies that were utilized for official purposes & not for the personal use of diplomats or others.

This may be a government initiative & a peer gesture to maintain a friendly & amicable relation with the organizations & the countries they are from.

These Organizations as specified by the government must attain a UIN or Unique Identification Number in order to claim GST Refund on any taxes paid.

As per Notification no. 16/2017- Central Tax dated June 28th, 2017, the following organizations are eligible to claim the refund of the central tax paid on the inward supply of goods.

  • United Nations Organization
  • Or a specified international organization
  • Foreign diplomatic mission  
  • Consular posted in India
  • Diplomatic Agents
  • Career consular officials

What is UIN? Who must get a UIN & how?

A UIN or Unique Identification Number is a special type of registration number given to UN organizations, foreign diplomatic missions & embassies, etc., that allows them to claim refunds of GST.

Such foreign organizations are not liable to pay any taxes in the Indian territory, and thus can claim a full refund of any taxes paid on inward supplies of goods & services.

This class of taxpayer is also called 'UIN Holder' because without a UIN they will not be able to claim any refunds on GST paid. And it is with the help of UIN that suppliers & dealers can identify the UN organizations.

The organizations can apply for a UIN through form GST REG-13. If the officials are satisfied they will allocate a UIN to the organization along with a certificate of form GST REG-06.

Note- UIN holders need not have a GSTIN & yet supplies to UIN holders must be considered B2B.

Additionally, the supplier must mention the UIN on all invoices, credit notes & debit notes issued to UIN holders.

UIN holders are required to file form GSTR-11 regularly, in order to claim the GST refund on taxes.

What is form GSTR-11?

GST Refund

Form GSTR-11 is a return form that must be filed by all the UIN holders, to claim the GST refund on taxes paid by them on inward supply of goods & services in India.

The due date for filing form GSTR-11 is the 28th of the subsequent month, from the month in which the UIN holder received the inward supplies.

Most of the details in this form are auto-populated & the UIN holder is not allowed to take any actions or make any modifications. For any changes, he must contact the supplier.

GSTR-11 Format-

Following is the format of form GSTR-11 in brief & the details to be mentioned in each section-

  1. UIN- You must enter the UIN issued to you in this section
  2. Name of the person having UIN- This section will get auto-populated from the UIN provided above.
  3. Details of Inward Supplies received- You need to enter the GSTINs of your suppliers in this section, and the details of invoices, credit notes & debit notes will get auto-populated. You cannot add or modify any details in this section. In the case of missing invoices, you must contact the supplier.
  4. Refund Amount- The refund amount will be auto-populated in this section & you will only have to enter the bank details or select a bank from the drop-down list.

You will then need to e-sign the form through EVC or DSC & then proceed to file.

Note- GSTR-11 Filing may or may not be a monthly activity. A UIN holder can file form GSTR-11 when they receive inward supplies & are not obliged to do so in case of nill transactions.

Points to Note before claiming a GST Refund on inward supplies

Before you claim the GST refund of taxes paid as a UIN holder, you must note these few points-

  1. A Valid UIN Holder- you must be a valid UIN holder in order to claim the GST refund.
  2. Regular filing of GSTR-11- As a UIN holder, you are required to file form GSTR-11 whenever you receive taxable goods or supplies.
  3. Required documents- Form GSTR-11 is the only document, however, if required, invoices, credit notes & debit notes can also be attached to Form GST RFD-10.

Timeline to claim GST Refund-

UN organizations can claim the GST refunds on a quarterly basis. You can claim the refund within six months from the last day of the quarter in which the supplies were received.

Let us understand this better- If a UN organization, diplomatic mission or Embassy, receives an inward supply of goods or services in the month of January, & files form GSTR-11 for the same in February.

Then the quarter of the transaction will be Jan-Mar, & they can claim the refund by filing form GST RFD-10 in March.

Also, since March 31st would be the last day of the quarter, six months from that would be September 30th, which will be the last date for claiming the refund.

How to File GST Refund Application? A guide for UN Organizations/Embassies

GST Refund

Finally, the UNOs & other special organizations can claim their GST Refunds of taxes paid on inward supplies by filing form GST RFD-10 on Common GST Portal.

You can File Form GST RFD-10 in two ways-

  1. Either by claiming the refund in the same quarter when they received the inward supply
  2. Or in any of the following quarters before the expiration.

Here is the process to claim the refund in the same quarter when you received the inward supply-

  1. Login to the GST Portal
  2. Post filing Form GSTR-11 there is an option to generate GST RFD-10 of the same quarter as GSTR-11.
  3. Select the Embassy/International Organization button
  4. Then click on 'Create'.
  5. Table-Details of the tax paid on purchases as reported under GSTR-11” is auto-populated from GSTR-11 of that period.
  6. Select the Bank account
  7. Then click on 'Save' button to upload the entered details to the portal
  8. You can also preview the form by clicking on the 'Preview' button
  9. Click on 'Proceed'
  10. Check the declaration box
  11. Select an authorized signatory from the drop-down list
  12. Submit with either EVC or DSC by clicking on, SUBMIT WITH DSC or SUBMIT WITH EVC

Here is the process to claim the GST refund in any of the following quarter from the date of receiving (before the expiration)-

  1. Login to the GST Portal
  2. Click on Services > Refunds > Application for Refunds.
  3. The Select Refund Type page is displayed. Select Embassy/International Organization button
  4. Select the Quarter & Financial Year of the refund application
  5. Click the 'Create' button
  6. Table- “Details of the tax paid on purchases as reported under GSTR-11” is auto-populated from GSTR-11 of that period.
  7. Select the Bank account
  8. Then click on 'Save' button to upload the entered details to the portal
  9. You can also preview the form by clicking on the 'Preview' button
  10. Click on 'Proceed'
  11. Check the declaration box
  12. Select an authorized signatory from the drop-down list
  13. Submit with either EVC or DSC by clicking on, SUBMIT WITH DSC or SUBMIT WITH EVC

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