Refunds Under GST

  • In case of refund arising from earlier law, it will be adjudicated as per earlier law. .
  • Refund application has to be made within 2 years from the relevant date.

Refund allowed in following cases:

  1. Excess payment of tax due to mistake or inadvertence.
  2. Export (including deemed export) of goods / services under claim of rebate or Refund of accumulated input credit of duty / tax when goods / services are exported.
  3. Finalization of provisional assessment.
  4. Refund of Pre – deposit for filing appeal including refund arising in pursuance of an appellate authority’s order (when the appeal is decided in favour of the appellant).
  5. Refund of tax payment on purchases made by Embassies or UN bodies.
  6. Credit accumulation due to output being tax exempt or nil-rated.
  7. Credit accumulation due to inverted duty structure i.e. due to tax rate differential between output and inputs.
  8. Year-end or volume based incentives provided by the supplier through credit notes.
  9. Tax Refund for International Tourists.

Relevant date for some situation –

Situation of Refund Years from the Relevant Date as under
On account of excess payment Date of payment of tax
On account of Export of Goods Date on which proper officer gives an order for export known as “LET EXPORT ORDER”
On account of Export of Services Date of payment received in convertible Foreign Exchange.
On account of finalization of provisional Assessment Date of the finalization order
In pursuance of an appellate authority’s order in favour of the taxpayer Date of communication of the appellate authority’s order
On account of accumulated credit of GST in case of a liability to pay service tax in partial reverse charge cases Date of providing of service


Filing of Refund Claim

Any person, except the persons covered by notification issued under section 55, claiming refund of any tax, interest, penalty, fees or any other amount paid by him, may file an application in FORM GST RFD-01 electronically through the Common Portal either directly or through a Facilitation Centre notified by the Commissioner.


An acknowledgement in FORM GST RFD-02 shall be made available to the applicant through the Common Portal electronically, clearly indicating the date of filing of the claim for refund.

Grant of refund

The refund relating to an application if found in order, will be sanctioned within sixty days from the date of receipt of application.

In case of refund claim on account of export of goods and/or services, the proper officer may refund ninety percent of the total amount claimed on provisional basis within a period not excessing 7 days from the date of acknowledgement of refund claim. This refund of 90% will be on a provisional basis, and will be subject to conditions, limitations and safeguards. Remaining ten percent may be refunded after due verification of documents furnished by the applicant.

Rejection of Refund

No refund shall be granted or paid to an applicant, if the amount is less than rupees one thousand.If the refund claim is made after the relevant date, the refund claim would be rejected at the threshold and there is no provision in the Act to condone the delay in filing refund claim and accept delayed refund claims.

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  1. Mrudul says:

    In case of Refund of Un – Utilized Input Tax Credit (ITC) due to Inverted Tax Structure, Refund is required to be filed with 2 years from the end of the financial year in which such claim for refund arises. Is it correct?

  2. kamal says:

    What will be timing of filing refund in case -: Credit accumulation due to inverted duty structure i.e. due to tax rate differential between output and inputs.

  3. I P Singh says:

    Dear sir,

    An important question

    We have paid cash under the head of IGST and CGST but while offsetting the liability of Jul-17 GSTN system has restricted and not allowed to adjust this cash payment made in head of IGST and CGST liability because we were having sufficient IGST & CGST ITC. Hence system has created liability in the head of SGST and we have paid additional cash in head of SGST to offset the Liability and file GSTR 3B.

    Now how can i adjust or got refund these cash paid in IGST and CGST because we have always sufficient ITC in IGST and CGST head.

    Please help

  4. Jinesh Gupta says:

    Priyaji It’s very nice articulated And simplified approach related to documents articles. It’s your begining and I appreciate you and keep going on this activities.

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March 2024