Meaning & Format- Refund Voucher under GST
When a registered person under GST receives an advance money for supply of goods or services in future, he is required to issue a “Receipt Voucher” to the customer. But sometimes, no supply could be made due to cancellation of order or other reasons and as such the registered person is to make a refund of advances so received or adjust such advance against any other order from the same customer.
Under such circumstances when refund is made to the customer (recipient), the registered person shall issue a “Refund Voucher” to the customer (recipient) for the refund of advance money so made. The refund voucher is prepared in accordance to section 31(3)(e) of the CGST Act read in conjunction with Rule 51 of CGST Rules. This article talks about what is Refund voucher, what are the particulars of Refund Voucher and the manner the refund voucher is issued.
What is Refund Voucher in GST?
Refund voucher is a document issued by the supplier of goods or services or both to the customer (recipient) at the time of refund of advance money received from the customer. Such refund voucher is required to be issued to reverse the impact of “Receipt Voucher” issued where the supplier was in receipt of advances earlier against supply of goods or services or both but the goods or services could not be supplied due to any reason.
Refund Voucher is required to be issued in accordance with clause (e) of section 31(3) of CGST Act, 2017. Necessary particulars to be furnished in the refund voucher has been prescribed under Rule 51 of the CGST Rules.
What are the particular of Refund Voucher?
According to Rule 51 of the CGST Rules, following details are required to be furnished in the Refund Voucher:
- Name, address and GSTIN of the supplier
- A unique consecutive serial number not exceeding 16 characters, unique for every financial year
- Date of issue of refund voucher
- Name, address and GSTIN or UIN (if registered) of the recipient
- Number and date of receipt voucher issued in accordance to Rule 50
- Description of goods or services in respect of which refund is made
- Amount of refund made
- Rate of tax (central tax, state tax, integrated tax, union territory tax or cess)
- Amount of tax calculated on the basis of rate of tax
- Whether the tax is payable on reverse charge basis; and
- Signature or digital signature of the supplier or his authorized representative
Note: In case the refund voucher is issued digitally or electronically, there is no requirement of signature or digital signature.
What is the treatment of refund voucher in the GST returns?
- Refund amount shall be shown in GSTR-1 under part II of Table 11 i.e. “amendment of information as to advances received/ advance adjusted furnished in earlier tax periods.”
- While filing GSTR-3B, adjustment shall be made in the amount of advance received on which GST is already paid and only net amount shall be reflected in Table 3.1(a) i.e. “outward taxable supplies”.
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