GST Refund

GST Refunds

GST Refund

Delays or errors in GST refund claims can directly affect working capital. We help clients prepare refund applications, supporting reconciliations, and responses to departmental queries so claims are filed with better documentation from the start.

Process of Claiming a GST Refund

GST refund claims can be filed in eligible situations under the GST law by following the prescribed portal process and document requirements. The broad refund process is as follows:

  • The applicant files Form GST RFD-01 on the GST portal with the relevant statements and supporting documents.
  • An acknowledgement reference is generated once the application is successfully filed.
  • The jurisdictional officer reviews the claim and may issue a deficiency memo or seek clarification if any information is missing.
  • Where the claim is found admissible, the officer processes the refund and passes the required order under the applicable GST procedure.
  • The sanctioned refund amount is credited to the bank account furnished in the application.
  • If the claim is partly admissible or not admissible, it may be adjusted, partly sanctioned, or rejected in accordance with the law after due process.

Documents required during GST Refund

The documents required during GST Refund process depends on various cases of refund. The required documents are

  • Copy of tax invoices
  • Copy of invoices of any transactions done by the supplier
  • An endorsement from an authorized officer for proving that the receipt of goods and services were provided to the Special Economic Zone (SEZ)
  • A declaration regarding that ITC has not been availed by the SEZ unit on the taxes paid by the service provider or supplier
  • A certificate from Chartered Accountant if the refund claim amount exceeds Rs. 2,00,000
  • Reference number of the order, in case the refund is claimed based on the order from an appellate court
  • Statements containing details of all the invoices that have been prescribed by the GST provisions
  • Export invoices
  • Relevant Bank Realization Certificate
  • Statement containing the details of date and number of all the bills related to the exports

Frequently Asked Questions

Under what cases, GST Refund is not available?

The GST Refund on unutilized Input Tax Credit on account of following is not available:

  • On the goods exported outside India, liable to export duty and
  • Where the supplier of goods or services or both avails of drawback (Central tax or IGST) paid on such supplies.

What forms are commonly used in the GST refund process?

The GST refund framework uses different forms at different stages of the claim. Common references include:

  • GST RFD-01 for the refund application
  • GST RFD-02 for acknowledgement of the filed claim
  • GST RFD-03 for deficiency communication, where applicable
  • GST RFD-04, RFD-05, and RFD-06 for provisional or final sanction and payment stages, as applicable
  • GST RFD-07, RFD-08, and RFD-09 for adjustment, notice, and reply situations, where relevant

How is the refund amount calculated?

The admissible refund is generally computed using the formula prescribed under the GST rules for the relevant type of refund claim:

  • Refund amount means the maximum refund that is admissible
  • Net ITC means input tax credit availed on inputs and input services during the relevant period