Form GST RFD-06 is also popularly known as Final Refund Order. This is an electronic order issued by the proper office to the taxpayer. This order is issued when the officer is satisfied or not satisfied with the particulars of form RFD-01 and the documents submitted there on. The payment is made against this order by issuing form RFD-05.
The other forms i.e. 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 are all in between the refund application and the payment advice.
Following are the details of form RFD-06:
The form starts with 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.
Total of 6 points are mentioned in this table:
i) Amount of refund/interest claimed: This refers to the actual amount which is claimed by the applicant
ii) Refund Sanctioned on Provisional Basis (Order No……date)(if applicable): 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 <> <>: If any amount is inadmissible for a refund then the details of the same should be entered here. The tax officer can enter multiple reasons here.
iv) Gross amount to be paid (1-2-3): This is simply the difference between point (i), (ii) and (iii) above
v) Amount adjusted against outstanding demand (if any) under existing law or under the act Demand Order No….. date….., Act Period : 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 to be paid: This is the amount which has been sanctioned in the order.
There are some declarations which the proper officer makes:
Declaration 1: This declaration specifies the sanctioned amount which the applicant will receive. It also mentions the amount to be deducted for any demands.
Declaration 2: This declaration mentions the amount to be credited to the Consumer Welfare Fund.
Declaration 3: If there is any rejection in the amount asked as a refund then this declaration mentions the details of the same.
Note: One of the above declarations stands true for any Final Refund Order.
GST Refunds is a major part of the Goods and Services Tax System. Timely refund mechanism is essential in tax administration, as it facilitates trade through the release of blocked funds for working capital, expansion and modernization of existing business.
If you have filed your GST Returns properly and there are no errors in reconciliation, your GST Refunds are most likely to be processed smoothly. IRIS GST helps all its readers with its premium product – IRIS Sapphire which is a cloud-based GST Return Filing Software and has advanced reconciliation module with strong reconciliation rules like match invoices across FY, beyond invoice number, fuzzy logic and user-defined tolerance that helps you completely match your purchase data with GSTR 2A and maximize your ITC.