Form GST RFD-05 is the fifth form in the GST Refund form series. It is basically a payment Advice. In our previous articles, we discussed in-depth about Form RFD-01 which is a refund application, form RFD-02 which is also known as the acknowledgement followed by form RFD-03 – the deficiency memo and form RFD-04 which is the provisional refund order.

The official government officer-in-charge shall issue a payment advice in Form GST RFD-05 for the amount sanctioned under sub-rule (2). It will also be electronically credited to any of the bank accounts of the application mentioned in the registration particulars and as specified in the application for refund.

Whether the officer is satisfied or not satisfied with the particulars of form RFD-01 and the documents submitted there; the officer shall make an order in form RFD-06 and issue a payment advice in form RFD-05. The only difference between the two cases is that if the officer is satisfied then the amount will be refunded to the applicant’s account and if he is not satisfied then the amount should be credited to the Consumer Welfare Fund.

Note: If any interest is to be payable to the applicant then it will be included in RFD-05.

Following are the details of form RFD-05:

The form starts with a Sanction Order No and it is more like a letter which addresses the applicant.

The body of this order begins with the application reference number (ARN), date, acknowledgement number and date.

Further, there is a table which provides details of the amount sanctioned, claimed and bank account in which refund is processed.

A total of 13 points are mentioned in this table:

i) Amount of refund claimed: This refers to the actual amount which is claimed by the applicant

ii)Refund Sanctioned on Provisional Basis (Order No……date): If any amount has earlier refunded on provisional basis then the details of the same should be entered in this point

iii) Refund amount inadmissible <<reason dropdown>>: If any amount is inadmissible for a refund then the details of the same should be entered here

iv)Balance refund allowed (i-ii-iii): This is simply the difference between point (i), (ii) and (iii) above

v) Refund reduced against outstanding demand (as per order no.) under earlier law or under this law. Demand Order No….. Date…..: If there is any outstanding demand against the applicant then the same can be deducted from the refund amount and balance amount can be refunded to the applicant.

vi) Net Amount of refund sanctioned: This is the amount which has been sanctioned in the order.

vii) Bank Account No. as per application: This is the bank account number in which refund is processed and the amount is credited.

viii) Name of the Bank: The name of the bank in which refund is credited

ix) Bank Account Type: The type of bank account in which refund is credited

x) Name of the Account Holder: The name of the account holder in whose account refund is credited

xi) Name and Address of the Bank/Branch: The address of the bank/branch in which refund is credited

xii) IFSC: IFSC code of the branch in which refund is credited

xiii) MICR: MICR code of the branch in which refund is credited.

New changes for the taxpayers as per GSTN:

• The taxpayer shall be able to view the payment advice in RFD-05 on the front office. The taxpayer receives communication through email and messages also.
• The bank account details mentioned in the refund application shall be validated by PFMS after issuance of RFD-05 by the tax-officer.
• The taxpayer will need to change/ edit the bank account details (through non-core amendment) if there is the failure of bank account validation by PFMS.
• The taxpayer shall be able to view the status of bank account validation and disbursement.

Features not available/ proposed at a later date:

There is no link of withholding order (RFD-07B) and the payment advice. It means the officer can issue RFD-05 even if there is a withholding order in RFD-07B against the ARN. The development of completely interlinked withhold and release functionality is under process and shall be deployed in the future. There is no auto-auto calculation of interest amount and the system doesn’t validate the interest amount i.e. it’s a free text field to be entered by the tax officer.

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