Comprehensive guide to claiming GST refunds — exports, inverted duty structure, excess tax payment, and more. Learn the step-by-step process, formulas, documents required, and timelines for each type of refund.
IGST paid on export supplies. Refund of IGST paid. Shipping bill acts as refund application for goods. For services, file RFD-01.
Exports made without payment of IGST using Letter of Undertaking (LUT). Refund of accumulated ITC on inputs/input services.
When GST rate on inputs is higher than output rate (e.g., 18% on inputs, 5% on output). Excess ITC accumulates and can be refunded.
Tax paid in excess due to error, incorrect rate application, or double payment. Includes excess cash balance in electronic cash ledger.
Supplies to SEZ, EOU, or against advance authorization. Supplier or recipient can claim refund.
CGST+SGST paid on supply later determined to be inter-state (should have been IGST). Refund of CGST+SGST after paying IGST.
Ensure all returns filed up to the period for which refund is claimed. Verify ITC reconciliation with GSTR-2B. Calculate eligible refund amount. Gather supporting documents.
Visit gst.gov.in → Login → Services → Refunds → Application for Refund. Select the relevant tax period for which refund is being claimed.
Choose the ground for refund — export with payment, export without payment (LUT), inverted duty, excess tax paid, etc. The form fields change based on type selected.
Fill the relevant statement — Statement 1 (exports), Statement 3 (inverted duty), Statement 5A (excess balance). System auto-calculates refund amount based on formula.
Upload: bank realization certificate (exports), shipping bills, tax invoices, statement of invoices, CA certificate (if refund > ₹2 lakh), self-declaration.
Review all details → Verify with DSC or EVC → Submit → Receive ARN. The refund amount is debited from electronic credit/cash ledger.
Officer reviews within 60 days. Provisional refund of 90% within 7 days for zero-rated supplies. Balance 10% after final order. Amount credited to bank account.
Maximum Refund = (Turnover of inverted rated supply ÷ Adjusted Total Turnover) × Net ITC − Tax payable on inverted rated supplyNet ITC = ITC availed on inputs and input services (excludes capital goods ITC)
Maximum Refund = (Turnover of zero-rated supply ÷ Adjusted Total Turnover) × Net ITCZero-rated includes exports and supplies to SEZ
| Stage | Timeline | Details |
|---|---|---|
| Acknowledgement | Within 2 days of filing | System auto-generates acknowledgement with ARN |
| Provisional Refund (90%) | Within 7 days | Only for zero-rated supplies. 90% of claimed amount (if no discrepancy) |
| Deficiency Memo | Within 15 days | If documents incomplete, officer issues deficiency memo. Taxpayer must refile. |
| Show Cause Notice | If claim appears incorrect | Officer issues notice. Taxpayer gets 15 days to respond. |
| Final Order | Within 60 days of application | Officer passes order sanctioning or rejecting refund |
| Credit to Bank | Within 5 days of order | Refund amount credited to applicant's bank account |
| Interest on Delay | After 60 days | If refund not processed within 60 days, interest at 6% p.a. from 61st day |
Shipping bill/BL, bank realization certificate (BRC/FIRC), export invoices, GSTR-1 details
LUT/Bond copy, export invoices, bank realization certificate, statement of ITC claimed
Statement of invoices showing higher input tax rate, purchase register, output supply details
Proof of excess payment, relevant GSTR-3B, challan copy, calculation sheet
CA Certificate certifying the refund amount claimed is correct and ITC has not been availed elsewhere
You must file the refund application within 2 years from the 'relevant date' as defined in Section 54. For exports, the relevant date is the date of shipping bill or date of receipt of foreign exchange, whichever is later.
Yes, but only for zero-rated supplies (exports and SEZ supplies). 90% of the claimed amount is refunded provisionally within 7 days. The remaining 10% is released after the officer completes final assessment.
Maximum Refund = (Turnover of inverted rated supply ÷ Adjusted Total Turnover) × Net ITC − Tax payable on inverted supply. Note: ITC on capital goods and input services where rate is higher than output are excluded from certain calculations.
If the officer rejects the refund (fully or partially), you receive an order with reasons. You can file an appeal to the Appellate Authority within 3 months. The rejected ITC amount is re-credited to your electronic credit ledger.
Yes. If refund is not processed within 60 days of application, you're entitled to interest at 6% per annum from the 61st day until the date of refund. For provisional refunds not sanctioned within 7 days, interest at 6% applies.