GST Refund
Get Your GST Refunds – Fast, Accurate & Hassle-Free!
Claiming your GST refund doesn’t have to be a complex, time-consuming process. Our expert team ensures end-to-end support – from document preparation to filing refund claims and liaising with GST officers.
The Goods and Services Tax (GST) law in India provides a mechanism for taxpayers to claim refunds on various grounds. The refund process is governed by Section 54 of the CGST Act, 2017 and associated rules. Understanding how and when to claim a refund can help businesses maintain liquidity and avoid cash flow disruptions.
🔍 What Is a GST Refund?
A GST refund refers to any amount that is eligible to be claimed back by the taxpayer from the government. It may arise due to:
• Excess payment of tax
• Export of goods or services
• Accumulated Input Tax Credit (ITC)
• Tax paid on purchases by SEZ or embassies
• Finalization of provisional assessments
• Deemed exports
🧾 Types of GST Refunds
| Refund Type | Description |
|---|---|
| Export Refund | Refund of IGST paid on export or unutilized ITC for zero-rated supplies |
| Inverted Duty Structure Refund | Refund due to higher tax rate on inputs than outputs |
| Excess Tax Payment | Refund when tax is paid more than due or under wrong head |
| Refund for SEZ Supplies | Refund on zero-rated supply to SEZ units or developers |
| Refund on Deemed Exports | Supplies treated as deemed exports under GST law |
| Provisional Assessment Refund | Arises after final assessment of provisional returns |
| Others | Refund due to judgment, order, or appeal |
📅 Time Limit for Claiming GST Refund
You must file the refund application within 2 years from the relevant date, which differs based on the nature of the refund.
📄 Required Documents for GST Refund Claim
1. GST RFD-01 – Refund application form
2. Copy of invoices (for inward/outward supply)
3. Bank account proof (cancelled cheque or bank statement)
4. Export documentation (Shipping bill, FIRC/BRC, LUT)
5. CA Certificate – Required if the claim amount exceeds ₹2 lakh
6. Statement of relevant transactions – GSTR-1, GSTR-3B
7. Declaration under Rule 89(2) (if applicable)
8. Undertaking of no unjust enrichment (where applicable)
9. Acknowledgement reference number (ARN)
🔐 Key Rules and Provisions
| Rule | Description |
|---|---|
| Section 54 of CGST Act | Legal base for refund application process |
| Rule 89 | Conditions and procedure for claiming refund |
| Rule 90 | Acknowledgement and deficiency memo |
| Rule 91/92 | Provisional and final orders of refund |
| Rule 96 | Refund of IGST on export of goods |
| Rule 97A | Manual filing provision in special cases |
📊 Refund Status Tracking
Track your refund using:
• GST Portal under Services > Refunds > Track Application Status • CPIN/ARN/Date Range can be used to filter
🚫 Common Reasons for Rejection of GST Refund
• Incorrect or incomplete documents
• Delay beyond 2-year time limit
• Non-submission of export evidence (FIRC, BRC)
• Mismatch in GSTR-1 and GSTR-3B returns
• Ineligible ITC claims
• Refund filed under the wrong category
📝 Step-by-Step: How to Claim GST Refund Online?
Step 1: Login
• Go to www.gst.gov.in and log in with your credentials.
Step 2: Navigate to Refund Section
• Click on Services > Refunds > Application for Refund
Step 3: Select Refund Type
• Choose the applicable reason (e.g., export, excess payment, ITC accumulation)
Step 4: Upload Documents
• Provide all required documentation and details
Step 5: Verification
• Submit declaration and file using DSC or EVC
Step 6: Acknowledgment
• System generates ARN and Acknowledgement (Form RFD-02)
Step 7: Processing by GST Officer
• May issue:
o Form RFD-03 – Deficiency Memo (if incomplete)
o Form RFD-06 – Final refund order
o Form RFD-07 – Withholding order
o Form RFD-08/09 – Show cause notice and reply
Step 8: Refund Sanctioned
• Amount is credited to the taxpayer’s bank account within 60 days (if no issues)
Our GST Refund Services Include
📌 1. Eligibility Check & Advisory
📌 2. Document Preparation & Compilation
📌 3. Online Filing & Submission
📌 4. Liaison with GST Department
📌 5. Reconciliation Support
FAQs on GST Refund
1. What is a GST refund?
A GST refund refers to the process where the taxpayer can claim the return of excess tax paid, tax paid on exports, input tax credit (ITC), or tax paid on deemed exports, among other cases.
2. How long does it take to receive the GST refund?
As per the GST law, the refund should be granted within 60 days from the date of receipt of the complete application. For exports, a provisional refund of 90% may be granted within 7 days.
3. Can the refund be withheld or rejected?
Yes. A refund may be withheld or rejected due to reasons such as:
• Mismatch of invoice details
• Incomplete documentation
• Ineligible ITC
• Non-submission of required declarations or certificates
4. Can I file a refund claim quarterly or monthly?
Yes. Depending on the type of refund, claims can be filed monthly or quarterly. For example, exporters can file refund claims on a monthly basis.
5. What is the refund process for exporters of goods/services?
Exporters can claim refunds in two ways:
• With payment of IGST: Claim refund through GSTR-1 and shipping bill.
• Without payment of IGST (under LUT/Bond): Claim refund of unutilized ITC through RFD-01.
6. Is there any interest on delayed refund?
Yes, if the refund is delayed beyond 60 days from the date of application, interest at the rate of 6% per annum is payable to the taxpayer.
7. What is the inverted duty structure refund?
This occurs when the rate of tax on inputs is higher than the rate of tax on output supplies. The taxpayer can claim a refund of the accumulated ITC.
8. Can unregistered persons claim GST refunds?
Unregistered persons can claim refunds only in specific situations like tax paid during the cancellation of a transaction, or in case of international tourists for goods carried outside India.
9. Can a refund be claimed for excess tax paid due to mistake?
Yes, if tax is paid mistakenly (e.g., CGST/SGST instead of IGST or vice versa), a refund can be claimed under Section 77 of the CGST Act, subject to conditions.
10. Is refund allowed for advance tax paid but supply is not made?
Yes. If advance tax is paid and the supply is not made (and the invoice is not issued), the tax paid can be refunded, especially in cases of order cancellation.
11. Can composition dealers claim a GST refund?
No. Composition dealers are not eligible for ITC, so they are generally not eligible for any refund except for excess balance in their electronic cash ledger.
12. Is refund of Input Tax Credit allowed in case of capital goods?
No. Refund of ITC on capital goods is not allowed under the inverted duty structure or export of services without payment of tax.
13. Can I file a refund for multiple months in a single application?
Yes, refund applications can be clubbed for multiple months, especially in the case of zero-rated supplies or inverted duty structure, subject to conditions.
14. What happens if the refund claim is rejected?
If rejected fully or partially, the taxpayer can file an appeal with the Appellate Authority within the specified time or rectify and refile if a deficiency memo is issued.
15. What is a Deficiency Memo?
If the refund application is found deficient or incomplete, a Deficiency Memo in Form GST RFD-03 is issued. The taxpayer must file a fresh refund application after rectifying the issues.
16. Is there any minimum limit for filing a refund claim?
Yes. Refund claims below ₹1,000 are not processed (applies separately for each tax head – CGST, SGST, IGST, and Cess).
17. Are refunds under GST taxable?
No. GST refunds are not considered taxable income and are not subject to GST.
18. Can refund be claimed for supplies made to EOUs (Export Oriented Units)?
Yes, deemed exports (including supplies to EOUs) are eligible for refund claims either by the supplier or the recipient, but not both.
19. What happens if bank account details are not validated?
If the bank account is not validated with the GST portal, the refund cannot be disbursed until successful validation occurs.
20. Is refund allowed on ITC for blocked credits (e.g., motor vehicles, food, etc.)?
No. Blocked credits under Section 17(5) of the CGST Act cannot be claimed as refund, even if they appear in the electronic credit ledger.
21. Can refund be claimed by a Non-Resident Taxable Person (NRTP)?
Yes, NRTPs can claim refund of any excess balance in their electronic cash ledger after filing a final return in Form GSTR-5.
22. Is refund available in case of stock destroyed due to natural calamity?
No refund of ITC is allowed on inputs or capital goods lost, stolen, destroyed, or written off, as per Section 17(5)(h).
23. Can refund be claimed by Input Service Distributors (ISDs)?
No. ISDs are not eligible to claim refunds, as their role is to distribute credit, not utilize it.
24. Is refund allowed in case of export duty paid on goods?
No. If goods are subject to export duty, then refund of accumulated ITC under zero-rated supply is not allowed, as per Rule 89(4A) and (4B).
25. What is the formula for IDS refund?
The formula under Rule 89(5) is:
Refund amount = (Turnover of inverted rated supply of goods and services × Net ITC ÷ Adjusted Total Turnover) − Tax payable on such inverted rated supply
26. Can input service ITC be claimed for services like courier, audit, or legal?
Yes, if these services are used in business and not falling under blocked credits (Section 17(5)), they are eligible for ITC and refund (if applicable).
27. Can ITC of services be claimed in job work scenario?
Yes, the principal can claim ITC of services used by job worker if the conditions of Section 143 are met and goods are returned within the prescribed time.
28. What if a part of the ITC on services is blocked (e.g., catering)?
If part of the service is used for personal consumption or non-business use, ITC is not allowed. Only the eligible portion can be claimed and included in refund.
29. Are reverse charge services eligible for ITC and refund?
Yes. Tax paid under Reverse Charge Mechanism (RCM) is eligible for ITC if it pertains to business use. It can be included in refund for exports but not in IDS.
30. Can I claim ITC on services used pre-GST registration (e.g., rent, legal)?
Only ITC on services received within 30 days before GST registration can be claimed, provided you file Form ITC-01 within 30 days of registration.
