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Gst refund services

As part of the GST, the GST Council developed a standard structure to handle taxpayers' requests for GST refunds in an easy-to-understand way. On the GST Portal, the full GST refund claim and processing are carried out online. In this article, we examine the circumstances in which taxpayers may request a GST refund. 


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Learn about GST Refund, Procedures Calculation and more ! 

The Goods and Services Tax (GST) was implemented in 2017. By bringing all commodities and services under its wing, it has superseded service tax, VAT, excise duty, and so on. Once you register your business/services, GST will assist you in maintaining tax compliance. The tax money assists the government in planning and carrying out required initiatives for the citizens. 

If the taxpayer has paid more than the real tax to be paid, the taxpayer has the right to request a refund before or on the due date for filing the GST return. This is discovered during the GST calculation. 

Every taxpayer has the right to request a refund of any taxes, interest charges, fines, expenses, or other sums by submitting an electronic application, GST RFD-01, using the GST Common Portal or a GST Facilitation Center.


What is GST refund? 

When the GST paid exceeds the GST liability, the circumstance of demanding a GST refund arises. To eliminate confusion, the method of obtaining a refund under GST is standardized. The process is done online, and time limits have been specified.

The GST refund process necessitates the taxpayer following complicated steps and submitting paperwork and declarations to the GST authorities in order to claim a GST refund. GST refunds can be the surplus cash balance in the electronic cash ledger, tax paid by mistake, or the accrued Input Tax Credit (ITC) that cannot be used for tax payments due to zero-rated sales or an inverted tax structure. 

The forms used to claim a GST refund differ depending on the type of GST refund sought. For example, an IGST refund in exports (with tax payment) can be obtained by simply entering facts on the GSTR-1 and GSTR-3B. In contrast, a refund of cash paid in excess of the electronic cash ledger can be obtained by submitting form RFD-01. As a result, the procedures or process varies depending on the type of GST refund. 

When will you claim your refund? 

There are numerous situations in which a refund might be obtained. Here are a few examples: Excessive tax payment is made due to an error or omission.  

  • Dealer exports (including deemed export) goods/services in order to collect a rebate or refunds

  • ITC accumulation as a result of the output being tax-free or nil-rated

  • Tax refund on purchases made by embassies or UN entities

  • International Tourist Tax Refund

  • Provisional assessment completion

GST Refund Eligibility

GST is charged on the basis of the number of invoices raised. It was implemented to ensure the efficient collection of taxes from producers and exporters. This technique has not only decreased the strain on the taxation system, but it has also made obtaining a GST refund easier. 

In the following cases, a person is eligible for a GST refund:

  • If you paid too much GST owing to an error in the calculation, you can get a refund.

  • A refund can be obtained in the case of an export transaction including a cumulative balance of input credits. This is also true if the exporter files a rebate claim.

  • If the preliminary evaluation suggests that you are eligible for a refund, you may apply for a GST refund.

  • If you have paid GST on products that are exempt from tax or have a lower tax rate, this leads in input credit accumulation in GST leaders. This is the maximum amount you can claim for GST refunds.

  • When a product is purchased through a United Nations partner or a foreign embassy, the purchaser is entitled to a GST refund. 

How do you compute your GST refund?  

Consider the basic instance of an overpayment of taxes. For the month of September, Mr. B's GST due is Rs 50000. Mr. B, on the other hand, made a GST payment of Rs 5 lakh by mistake. Mr. B has now paid an excess GST payment of Rs 4.5 lakh, which he can claim as a refund. The refund must be claimed within two years after the date of payment. 

GST Refund Forms List:  

Forms are provided for each case in order to file a GST refund. They are as follows : 

Form RFD-01 (Application Form) :  

Form RFD-01 must be authorized by a chartered accountant to be filed within two years of the relevant GST date in order to be filed. Because the relevant date varies in each circumstance, there is no single definition. 

Form RFD-02 (Acknowledgement Form): 

Form RFD-02 would be generated automatically when the assessee has filed an application for a GST refund. This contains the application's details and acknowledgement. Form RFD-02 can be delivered to the assessee through email or SMS.  

Form RFD-03 (Deficiency Memo Form):

If an error is made on Form RFD-01 when submitting an application for a GST refund, the applicant will be sent Form RFD-03 to fix the error. This form should be returned when all necessary modifications have been made.  

Form RFD-04 (Provisional Order):

In the instance of a zero-rated supply, the applicant may file Form RFD-04 for a GST refund. If the assessing officer is satisfied with the application, he may authorize 90% of the total refund amount on a provisional basis within seven days.  

Form RFD-05 (Payment Order):

The sanctioned amount will be reported on Form RFD-05. You can rest confident that the funds will be credited to your bank account. 

Form RFD-06 (Refund Order):

If the assessing officer believes there is no need for further investigation, the reimbursement order will be issued using Form RFD-06. 

Form RFD-07 (Adjustment Form):

Form RFD-07 must be filed if there is a significant demand to be adjusted with the GST refund.

Form RFD-08 (Rejection Notice Form):

When an assessing officer rejects a refund application or a portion of a GST refund claim, a notification is given using Form RFD-08, in which the applicant is asked to substantiate their claim. 

Form RFD-09 (Justification Form):

If the applicant gets the notice via Form RFD-08, the answer explaining the claim must be sent via Form RFD-09.  

Form RFD-10 :

If the applicant is a United Nations body, Consulate, or foreign embassy, they must file Form RFD-10 within 90 days after the end of the quarter to receive a GST refund. 

What is the deadline for requesting a refund? 

The deadline for requesting a refund is two years from the relevant date. In each situation, the applicable date is different. For some circumstances, the relevant dates are as follows: 

Reason for claiming GST Refund with  (Relevant Date)  

Excess payment of GST  (Date of payment)

Export or deemed export of goods or services (Date of despatch/loading/passing the frontier)

ITC accumulates as output is tax exempt or nil-rated (Last date of financial year to which the credit belongs)

Finalisation of provisional assessment (Date on which tax is adjusted)

The government will also charge interest of 24% p.a. if the refund is not paid on time. 


Documents Required for GST refund:

  • GST Refund for Exports

  • GST Refund for Supply to SEZ 

  • GST Refund for Accumulated Input Tax Credit

  • GST Refund on Account of Order

How to claim GST refund? 

The refund application has to be made in Form RFD 01 within 2 years from relevant date. The form should also be certified by a Chartered Accountant. You can file your returns very easily with our Accubucks Solution Experts. Contact us now and our team help you to slove your quaries and help you to claim your GST Refund. 

You don't have to worry about losing the extra money because our skilled lawyers and company secretaries in India will assist you in claiming it. You only need to submit the relevant documentation, and we will handle the refund procedure for you. We will also provide you with a full summary of the process so that you have realistic expectations.

Our highly qualified support team will be in touch with you throughout the process and will clear any doubts you may have. Contact Accubucks Solution to receive your reimbursement in a timely manner.


FAQs on  GST Refund Services

Question: Is there a minimum refund amount? 
Answer: If the amount is less than 1,000 rupees,  no refund will be issued.

Question: Should GSTR 2 and GSTR 3 be filed in order to obtain a GST refund?

Answer: If the taxpayer has filed GSTR 1 and GSTR 3B, he does not need to complete any further forms to request a GST refund. 

Question:When is the last day to get a refund?

Answer: A person demanding a refund must file an application within two years of the'relevant date,' as defined in Section 54 of the CGST/SGST Act.  

Question:Can a taxpayer receive a GST refund if the IGST is paid on items exported?

Answer: Yes, provided the taxpayer filled out all of the information in Table 6A of GSTR 1 and also completed GSTR 3B, he is eligible for a GST refund.  

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