Businesses can claim a GST refund in several situations — exports, an inverted duty structure, excess balance in the cash ledger, or excess tax paid. Timely refund claims free up working capital.
This guide explains the eligible refund cases, the RFD-01 application process, and the timelines.
What is GST Refund?
A GST refund returns tax or accumulated credit to the taxpayer where the law allows. Common cases are zero-rated exports (with or without payment of tax) and accumulated ITC due to inputs being taxed higher than outputs (inverted duty).
Refunds are claimed online in Form RFD-01, with supporting statements.
Common refund cases
- Exports of goods/services (zero-rated)
- Supplies to SEZ units/developers
- Inverted duty structure (accumulated ITC)
- Excess balance in the electronic cash ledger
- Tax paid on supplies later found not liable
Step-by-step process
- Identify the ground. Determine the eligible refund category and period.
- File RFD-01. Submit the refund application with the required statements and documents.
- ARN & scrutiny. Receive an ARN; the officer scrutinises and may issue deficiency memos.
- Sanction & credit. On approval, the refund is credited to your bank account.
Frequently asked questions
How long does a GST refund take?
The law provides for sanction within 60 days of a complete application, with interest payable on delays beyond that.
Can exporters get a refund?
Yes. Exporters can claim a refund of IGST paid on exports, or of accumulated ITC when exporting under an LUT without paying tax.