Under the GST regime, taxpayers can file a refund application in Form GST RFD-01 for excess balance in electronic cash ledger or electronic credit ledger of tax, interest, penalty, fees, or any other amount. The process of filing a refund application is online through GST Portal.
Earlier if an incorrect refund application was furnished then the taxpayer had no way to withdraw the same. Do note when you submit a refund application then the amount for which refund is sought/applied shall be automatically debited from the electronic credit ledger and electronic cash ledger.
New functionality to withdraw an already filed refund application has been implemented by inserting a sub-rule to Rule 90 of CGST Rules vide a CGST Notification no. 15 dated 18th May 2021.
GST RFD-01W: Application for Withdrawal of Refund Application
FORM GST RFD-01W is to be filed for withdrawing a refund application.
Refund application filed in Form GST RFD-01 can be withdrawn on the following grounds
– A refund application was filed by mistake
– A refund application was filed under an Incorrect category
– A refund application was filed with incorrect details
– In case of any other reason then needs to be specified.
Provided provisional refund sanction order was not issued, payment order for refund was not issued, final sanction order for refund was not issued, withholding order for refund was not passed, notice for rejecting the application was not issued.
Once you submit an application in Form GST RFD-01W for withdrawing the refund application filed in Form GST RFD-01 then
– The amount which was debited from the electronic cash ledger will be credited back to the electronic cash ledger.
– The amount which was debited from the electronic credit ledger will be credited back to the electronic credit ledger.
Refund application furnished in Form GST RFD-01 cannot be withdrawn if
– Order for provisional refund sanction is issued in Form GST RFD-04
– Order for payment is issued in Form GST RFD-05
– Order for final refund sanction is issued in Form GST RFD-06
– Order for withholding refund is passed in Form GST RFD-07
– Notice for rejecting the refund is issued in Form GST RFD-08