Form GST RFD-10: Claiming GST Refunds for Specific Entities

While the standard GST refund mechanism in India is primarily designed for registered taxpayers using Form GST RFD-01, a separate process exists for certain specialized entities that are eligible for a refund of the GST paid on their inward supplies. This process is initiated by filing Form GST RFD-10, specifically designated for Application for Refund by certain persons.

This article delves into the purpose of Form GST RFD-10, identifies the entities eligible to use it, explains the application process, and outlines its significance in the GST framework.

What is Form GST RFD-10?

Form GST RFD-10 is the prescribed application form used by specific international organizations, foreign diplomatic missions, and other notified persons to claim a refund of the Goods and Services Tax (GST) paid by them on their inward supplies of goods or services or both received in India.

Purpose: The main purpose of Form GST RFD-10 is to provide a structured format for these eligible entities to apply for the refund of the tax burden they have borne on their procurements for official use, as they are generally exempt from bearing indirect taxes based on international agreements or specific notifications by the government.

Who is Eligible to File Form GST RFD-10?

The following persons are eligible to apply for a GST refund using Form GST RFD-10:

1. Any specialized agency of the United Nations Organization (UNO) or any Multilateral Financial Institution and Organization notified under the United Nations (Privileges and Immunities) Act, 1947.  
2.  
3. Consulates or Embassies of foreign countries in India.
4. Any other person or class of persons as may be notified by the Commissioner of State Tax or Central Tax.

These entities are typically assigned a Unique Identity Number (UIN) by the GST authorities instead of a regular GST Identification Number (GSTIN). The UIN is crucial for them to be able to claim refunds.

What Kind of Refund is Claimed Using RFD-10?

Form GST RFD-10 is used to claim a refund of the GST paid on inward supplies of goods or services or both received by the eligible entities for their official use. This includes CGST, SGST, IGST, and GST Cess.

When and How is Form GST RFD-10 Filed?

Eligible entities are required to file Form GST RFD-10 once in every quarter. The application must be filed within six months from the last day of the quarter in which the inward supply was received.

The application can be filed electronically on the GST common portal, either directly or through a Facilitation Centre notified by the Commissioner.  

A prerequisite for filing RFD-10 is that the supplier making the inward supply to these entities must mention the recipient’s UIN on the tax invoice issued for the supply. The details of such inward supplies are typically reported by the UIN holder in their statement of inward supplies, Form GSTR-11, which needs to be filed before filing the refund application in RFD-10. The data in RFD-10 is often auto-populated based on the information furnished by the suppliers in their outward supply details (GSTR-1) and reported by the UIN holder in GSTR-11.

What Information Does Form GST RFD-10 Contain?

Form GST RFD-10 is designed to capture the necessary details for processing the refund claim for these specific entities. It typically includes:

• The Unique Identity Number (UIN) of the applicant.
• The name and address of the applicant.
• The relevant tax period (Quarter) for which the refund is claimed.
• The amount of refund claimed, broken down by tax heads (Central Tax, State Tax, UT Tax, Integrated Tax, Cess).
• Details of the Bank Account where the refund amount is to be credited.
• Reference number and date of furnishing Form GSTR-11 for the corresponding period.
• A verification section affirming the correctness of the information.

Process After Filing RFD-10

Upon successful filing of Form GST RFD-10, an acknowledgement is usually issued in Form GST RFD-02. The tax authorities then undertake verification of the details provided in the application and compare them with the data furnished by the suppliers (in GSTR-1) and the UIN holder (in GSTR-11).

If the application is found to be in order and the claim is admissible, the refund amount is sanctioned. The sanctioned amount is then disbursed electronically to the bank account details provided in Form RFD-10.

Principle of Unjust Enrichment

For refunds claimed by these eligible entities under Section 55 of the CGST Act, the principle of unjust enrichment generally does not apply. This is because these entities are intended to be exempt from the burden of indirect taxes for their official procurements, and the refund mechanism ensures that the tax paid by them is returned.

Relation to Other GST Forms

Form GST RFD-10 is a standalone application form used by a specific category of persons, distinct from the general refund application Form GST RFD-01 used by registered taxpayers. However, the process following the application, such as verification and sanction/disbursement, may involve internal processes and forms used by the tax department, although the taxpayer’s primary interaction for application and tracking is centered around RFD-10 and their UIN. The supplier making supplies to a UIN holder needs to report these supplies in their GSTR-1, linking them to the recipient’s UIN, which then auto-populates in the UIN holder’s GSTR-11.

Conclusion

Form GST RFD-10 is an important facet of the GST refund mechanism, specifically designed to facilitate the refund of taxes paid on inward supplies by eligible international organizations, foreign diplomatic missions, and other notified entities holding a Unique Identity Number (UIN). It underscores the Indian government’s commitment to honouring international obligations and providing a streamlined process for these bodies to reclaim the GST burden on their official procurements, thereby maintaining their tax-exempt status. Filing RFD-10 accurately and on time is essential for these entities to ensure prompt processing of their eligible refund claims.