Form GST RFD-07 is an order for complete adjustment of sanctioned GST Refund. This form provides information about refund adjusted or withheld. The Refund Application is applied in RFD-01 and RFD-01A of which the acknowledgement is received in Form RFD 02. Form RFD 03, which is the deficiency memo, suggests any pendencies in the application. Form RFD 04 is the provisional refund order after which Form RFD 05, the payment advice is issued followed by the Final Refund Order in Form RFD 06.
Following are the details of form RFD-07:
- The form starts with a Reference No.
- The body of this notice begins with the application reference number (ARN), date, acknowledgement number and date.
Further, there are two parts to this form. Part A is a table which provides details of the amount sanctioned on a provisional basis and adjusted against outstanding demand.
Total of 6 points are mentioned in this table:
- Amount of refund/interest claimed: This refers to the actual amount which is claimed by the applicant
- 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
- Refund amount inadmissible <<reason dropdown>> <<Multiple reasons to be allowed>>: 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.
- Refund admissible (i-ii-iii): This is simply the difference between point (i), (ii) and (iii) above
- Refund adjusted against outstanding demand (as per order no.) under existing law or under the act Demand Order No….. date….. <Multiple rows may be given>: If there is any outstanding demand against the applicant then the same will be adjusted against the refund claimed.
- Balance amount of refund: This should always be NIL.
Part B of the notice gives the details of the amount withheld. In this table along with Refund Order No and Date of issuance of Order, Refund Calculation is also provided.
Refund Calculation is divided into three parts:
Part 1: The details of the amount of refund which is sanctioned is mentioned in this part
Part 2: The details of the amount of refund which is withheld is mentioned in this part
Part 3: The details of the amount of refund allowed is mentioned in this part
The reasons for withholding the refund are also provided in this notice.
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.