This write up highlights the GST Refund process followed in Papua New Guinea (PNG) and is useful for all business, who are eligible for refund claim. We have adopted a question-answer approach, to make this more informative.
What is GST refund and does my business qualify?
To put it simply, GST refund arises when GST paid on purchases (input GST) exceeds the GST collected on sales (output GST). If your business is GST registered, have lodged their monthly GST return and have declared a refund, you automatically qualify.
When can I claim a refund?
You can make a GST refund application every month or as and when you desire, by filling a prescribed form. However, if your GST refund claim is large and significantly impacts your cash flow it is advisable to make a monthly application, to remain operational.
How can you claim for a refund?
We have highlighted the common steps involved in claiming a GST refund in PNG:
- Lodge a GST return in prescribed form (G1) on or before 21st of following month
- Ensure that return is assessed
- Lodge a refund application in prescribed form (CR2). This can be simultaneously done, with Step 1.
- Make a separate application to the GST audit section asking them to certify by enclosing the following documents-
- Sales and supplier listing
- Sample copies of invoices
- Duplicate copy of GST return
- Duplicate copy of CR2
- Once the refund is certified, an internal notification is sent to Accounts to progress with printing, signing and issuing the cheque.
- The assessment process may take 1- 7 days, certification process may take between 2-3 weeks and accounts may take another 1-2 weeks. So, you can expect a cheque between 4-6 weeks, if all is in order.
Tips and suggestion
- Don't wait for last moment lodge GST return as early as possible
- Ensure all information is in order
- Don't claim GST on ineligible expenses
- Ensure return is lodged both over counter and with GST audit team
- Make return and refund application simultaneously
- Always make an extra copy for ease of follow-ups.
- Ensure that the sample invoices are carefully selected to cover the maximum refund.
- Following up is the essence
- Ensure you opt for personal collection of the refund cheque so it can save time
- Ensure the person collecting cheque carried an ID
Why should you contact us?
At Shishya, we specialize in obtaining GST refunds. Our consultants are experienced, have solid understanding of process, share excellent working relationship with IRC and suitably placed, to assist your business in obtaining refunds in acceptable timeframes.