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GST Refund Procedure

GST Refund Procedure - How to Claim GST Refund?

What is GST Refund?

Whenever a taxpayer pays more GST than his liability due, he can claim the excess amount as a refund. The online GST Refund process is streamlined and simplified. Anyone eligible for GST refund must apply within the time allotted.

For example, Mr X has a GST liability of Rs. 100. However, he has paid Rs. 110 instead of Rs. 100. Then, he is eligible to claim a GST refund of Rs. 10, provided he applies for the refund within two years of the date of payment. 

Who is Eligible?

Here are some instances where a taxpayer becomes eligible for GST refund:

  • Payment of GST over the liability by mistake

  • Exporters of products or services who can claim GST refund in the form of a rebate

  • Input tax credit which has accumulated because the final output is nil rated or tax-exempt

  • Purchases made by UN bodies or foreign embassies which make a refund of tax

  • International tourists who are eligible for GST refund 

What are the Documents required for GST Refund?

  • Documents needed to claim GST refund will differ based on the situation:

  • Exports – shipping bills, export bills, bank realisation certificates and proof of receipt of payment in foreign currency

  • Supply to an SEZ – proof of receipt of goods into SEZ and declaration from SEZ regarding the application of input tax credit from such purchase

  • The accumulated amount of Input Tax Credit – a statement detailing invoices specified as per GST refund rules

  • Court order – Tax invoices pertaining to the case and order reference number

What is the Step-by-Step Process?

Form RFD-01 has to be filled out online:

  1. Login to the GST Portal

  2. Click on ‘Services’ then ‘Refunds’ then ‘Application for Refund’

  3. Click on ‘Refund of Excess Balance in Electronic Cash Ledger’. Then, select ‘CREATE’

  4. A popup will appear showing all amounts in the Electronic Cash Ledger which the taxpayer can claim as GST refund

  5. Specify the bank account where you want the amount transferred and select ‘Save’

  6. Select the checkbox to accept the declaration and then sign by selecting ‘Authorised Signatory' from the drop-down list

  7. Finally, select  ‘SUBMIT WITH EVC’ or ‘SUBMIT WITH DSC’ depending on your organisation type

This completes the process of filing Form RFD-01. Subsequently, the ARN receipt is generated. Post inspection by a GST official, the refund amount is transferred to the specified bank account.

What is the time limit for Filing?

The time limit for applying for GST refund is two years from the date of payment of the same. If the government delays in refunding the amount, it is required to pay interest at the rate of 24 per cent per annum to the taxpayer.

What are the Points to be Noted?

Make sure you check whether you are eligible for GST refund every time you file GST return, whether on a monthly or quarterly basis. This ensures that you never miss out on an opportunity to claim your rightful return.


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