In the following cases, a refund can be claimed in Goods and Services Tax law-
(1) Excess payment of tax due to mistake or error
(2) Excess GST balance in Electronic Cash Ledger
(3) Unutilized input tax credit balance on account of inverted rated supply (Rate of GST paid on purchases higher than GST rate on output)
(4) Unutilized input tax credit balance on account of zero Rated Supply
(5) GST paid on an inter-state supply which later held as intra-state supply or vice-versa
(6) GST paid on a supply that is not rendered and an invoice for which has not been issued
(7) GST paid on zero-rated supplies
(8) Refund in respect of finalization of provisional assessment
(9) Refund in respect of the decision of any court, appellate authority, or appellate tribunal in favor of the taxpayer
(10) Taxes paid during the investigation (Pre-deposit)
(a) Refund application must be filed within 2 years from the relevant date.
(b) GSTR-3B for the relevant month has been filled.
(c) Outward supplies must be taxable i.e. should not be nil rated or exempted
(d) Claimed refund amount should not be less than Rs 1000.
(e) In case of a refund of an input tax credit, the export supply shall not be subject to export duty and duty drawback of integrated tax paid has not been availed by the taxpayer.
(f) IGST amount has been deposited to the Government - in case of refund arises because of CGST/SGST paid on an inter-state supply which later held as intra-state supply or vice-versa.
Steps to claim a refund under Goods & Services Tax is given below in the categorized manner-
Step 1: Filing of refund application
Online refund application will be filed in Form GST RFD-01 within 2 years from the relevant date. An application must be supported by documentary evidence proving the payment of tax, interest, or any other amount. Note, where a refund claimed by a taxpayer is less than 2 lakh, documentary evidence is not required to furnish.
Step 2: Securitization of application
At this step, the concerned officer will check whether the application filed by the applicant is complete or accurate in all aspects. If there is no issue with an application, the acknowledgment will be issued in GST RFD-02. This form will apparently specify that period of refund shall be counted from this date. In case of any variance in an application, the same will be communicated to the applicant in GST RFD03.
Step 3: Refund Order
The tax officer has to pass the refund order within 60 days from the date of receipt of a complete application. A refund order will be issued in GST RFD05 with payment advice in the form GST RFD06. The amount of refund will be automatically credited to the registered bank account of the taxpayer. In case of zero-rated supply, provisional refund order for 90% of the claimed amount shall be passed within 7 days of acknowledgment of application. A provisional refund order will be issued in GST RFD-04.
The taxpayer entitled to claim interest on a period of refund delay if the refund has not been processed by the concerned officer within 60 days from the date of receipt of the refund application. Amount of interest along with refund amount shall be credited electronically to a taxpayer registered bank account.
Documents involved in the refund process are said to be GST refund forms. There is a total of 11 refund forms prescribed in GST law which are given below.
GST RFD–01 |
Application for refund |
GST RFD- 01A |
Application for a refund (Manual) |
GST RFD- 01B |
Refund order details |
GST RFD–02 |
Acknowledgment |
GST RFD–03 |
Deficiency memo |
GST RFD–04 |
Provisional refund order |
GST RFD–05 |
Payment advice |
GST RFD – 06 |
Refund sanction/rejection order |
GST RFD–07 |
Order for Complete adjustment of sanctioned refund |
GST RFD–08 |
Notice for rejection of application for refund |
GST RFD–09 |
Reply to show cause notice |
GST RFD–10 |
Application for Refund by any specialized agency of UN or any Multilateral Financial Institution and Organization, Consulate or Embassy of foreign countries, etc. |
GST RFD-10A |
Application for a refund by Canteen Stores Department (CSD) |
GST RFD–10B |
Application for a refund by Duty-Free Shops/Duty Paid Shops (Retail outlets) |
GST RFD–11 |
Furnishing of bond or Letter of Undertaking for export of goods or services |
Refund formula in case of export of goods or services, (Export turnover*Net input tax credit) / Adjusted total turnover Refund formula in case of inverted rated supply, (Inverted rated supply turnover*Net input tax credit) /Adjusted total turnover – Tax paid on inverted rated supply Explanation of terms used in the formula
gst refund
The office of Pr. CCA, CBIC has set up a GST Refund Help Desk for addressing payment-related problems faced by the taxpayers....
The Department of Excise and Taxation (GST), Haryana, considered it expedient to put in place an internal control mechanism for processing refund applications under GST....
When the excess payment of tax has been made under Goods and Services Tax (GST), the same can be claimed as a refund by filing an application on the GST portal. ...
Steps to track GST refund status on the Common Portal after login...
If an order is issued by the tax officer against which the refund is arising due to a change in place of supply of a particular transaction, GST refund can be claimed...
LUT is an undertaking to be furnished by exporter in the prescribed format in FORM GST RED-11 in order to export goods or services without payment of IGST....
The exporter is entitled to receive a refund on account of the export of goods with payment of tax. Check out the conditions and process....
Step by step guide to view submitted Letter of Undertaking (LUT) on the GST official website. ...
If the GST officer is satisfied that the amount claimed as refund is not admissible, he shall issue a show-cause notice to the applicant in form RFD-08....
If the refund is not processed within 60 days of receipt of an application by the officer then the refund has to be paid with an interest at 6% pa....
Every GST refund claim made must pass the test of unjust enrichment. Read more...