GST Refund

GST Refund

GST Refund

Coverage of GST Refund

  1. When you can claim GST refund?
  2. What is the time limit for applying GST refund?
  3. Meaning of Relevant date for claiming refund
  4. What are the documents required for claiming GST Refund?
  5. Step by Step procedure to get GST Refund
  6. Order for Refund

Generally GST refund cases arise when the input tax credit under GST is more than the output tax credit under GST. This excess amount is shown as a balance in the Electronic Cash Ledger. The balance in Electronic Cash Ledger can be claimed as a refund by submitting a refund application form RFD – 01. This can be done online on the GST Portal/ GSTN.


When you can claim GST refund?

When the taxes are paid in excess than assessed either erroneously or mistakenly, refund can be claimed under GST. A GST refund claim can arise on account of:

  • Export of goods or services.
  • Refund of pre-deposit
  • Excess payment of GST because of any mistake including an error in either calculation or submission
  • Refund of CGST & SGST paid by treating the supply as intra-State supply which is subsequently held as inter-State supply and vice versa.
  • Refund on account of issuance of refund vouchers for taxes paid on advances against which, goods or services have not been supplied.
  • Refund of Accumulation of on account of inverted duty structure
  • Deemed export of goods/services under claim of rebate or Refund
  • Refund of tax for International Tourists paid on goods within the country and carried to overseas on their departure from India
  • Supplies to developers and units in special economic zones (SEZ)
  • Finalisation of provisional assessment
  • Refund of taxes when embassies make purchases
  • Refund arising from order, judgment, direction or decree of the Appellate Tribunal, Appellate Authority or any court of law
  • Refund of tax paid on purchases made by Embassies or UN bodies


What is the time limit for applying GST refund?

The refund application has to be electronically submitted in Form RFD 01 within 2 years from relevant date (The relevant date is different in every case). However, in case where the amount of refund exceeds Rs 2 lakhs, the refund application form must be certified by a Chartered Accountant / Cost Accountant.

Further, if a GST refund claim is less than Rs. 2 Lakhs, then a self-declaration of the applicant must be submitted to the effect that the incidence of tax has not been passed to any other person.


Meaning of Relevant date for claiming refund:

Here are the relevant dates for different refund cases –

Reason for claiming GST Refund Relevant Date
Excess payment of GST Date of payment
Export or deemed export of goods or services Date of dispatch/loading/passing the frontier
ITC accumulates as output is tax exempt or nil-rated Last date of financial year to which the credit belongs
Finalisation of provisional assessment Date on which tax is adjusted
Goods exported by sea or air Date on which the ship or aircraft in which the goods are loaded, leaves India
Goods exported by land Date on which the goods pass the frontier
Goods exported by post Date of dispatch of goods by the concerned post office
When the supply includes services, and when the same is completed before receipt of payment Relevant date shall be the payment receipt date.
when the services are performed after receipt of an advance Relevant date shall be the invoice date.


What are the documents required for claiming GST Refund?

The below is the list of standard documents to be filed along with refund claim by applicants making a claim:

Invoice For each claim, the primary document that has to be submitted is a statement of relevant invoices relating to the claim.


Refund for exports If the refund is made on account of export of services, not including the statement of invoices, the relevant bank realisation certificates verifying receipt of payment in overseas currency should also be furnished.
Refund for Supply to SEZ In case a claim is made by the supplier to the Special Economic Zones (SEZ) unit, the authorised officer will have to make an endorsement verifying the receipt of such commodities or services in the SEZ and submit the same along with the other documents.


Further, the SEZ unit will also have to provide a declaration stating that ITC of the tax paid by the supplier has not been availed


Refund for Accumulated Input Tax Credit If case of GST refund of accumulated input tax credit, a statement containing invoice details as prescribed in the GST refund rules must be submitted.
Refund on Account of Order In case of refund against any order or judgment, the reference number of the order giving rise to refund should be given along with the relevant tax invoices.


Step by Step procedure to get GST Refund

Here is a step by step Guide to File claim refund under form RFD – 01 on GST Portal:

Step 1: Login to the GST portal, click on Services > Refund > Application for Refund.

Step 2: select “Refund of excess balance in electronic cash ledger” and click on “create”.


Step 3: Once click on create, all balances in the Electronic Cash Ledger will be reflected which can be claimed as refund.

(You can also enter values by editing in “refund claimed” )


Step 4: Then select “bank” in which you want your GST refund to get credited and click on button “save”


Step 5: Lastly, tick the checkbox and select “authorised signatory” from the drop-down menu.


(Select either of “‘SUBMIT WITH DSC’ or ‘SUBMIT WITH EVC’)


Once RFD – 01 is filed Refund ARN Receipt is generated in PDF format. After inspection by a GST officer refund will be credited to the bank account.


Order for Refund

If the refund is on account of export of goods and/or services, the authorised officer will refund 90% of the total amount claimed as refund on a provisional basis in Form GST RFD-4. Thereafter, after due verification of the documents furnished, the officer will issue an order for final settlement of the refund claim.

If the officer is satisfied that the whole or part of the amount claimed as refund in the application is refundable, he will issue an order for the refund in Form GST RFD-5. This will be done within 60 days from the date of receipt of application. If the refund is not sanctioned within 60 days, interest on the refund amount will be paid for the period after 60 days, till the date of actual refund of tax.

Note: No refund shall be granted where the amount of refund is less than Rs. 1,000.

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