GST is a tax on goods and services in India. It has three components: SGST, CGST and IGST. After making the necessary GST payments, you will know whether you will receive a refund or not. If eligible, you will have to file for the reimbursement using the GST refund form RFD-01. As simple as it may sound, the GST refund process is technical. A delay or incorrect filing will lead to a rejection of your refund request. Thus, follow the terms and conditions of the GST refund and file the form accurately and on time.
Additional read: How to verify your GSTIN.
What is the GST refund process?
To simplify the process of GST refund, the income tax authorities have translated it into an online process. This means you can claim a refund online using your registered GST account anytime within two years from the relevant date. The relevant date differs based on the condition of your claim. So, abide by the GST refund dates as mentioned below to claim your refunds on time.
- If you are claiming a refund for excess payment of GST, your date of payment becomes the relevant date.
- If you are claiming a refund for export or deemed export of goods or services, the date of despatch/ loading/ passing the frontier becomes the relevant date.
- If Input tax credit (ITC) accumulated as output is tax-exempt or nil, the last date of the financial year to which the credit belongs becomes the relevant date.
- If you pay excess basis the finalisation of provisional assessment, the date on which tax is adjusted becomes the relevant date.
Additional read: What taxes has GST replaced?
When can the GST refund be claimed?
Here is when you can claim a GST refund:
- Due to mistakes or omissions, excess tax is paid.
- Dealer and deemed export goods or services under the claim of refund or rebate
- Purchases made by UN bodies or embassies can be refunded.
- ITC accumulation due to output being tax-exempt or nil-rated
- Finalisation of provisional assessment
- International tourists get a tax refund.
What is the time limit for claiming the refund?
Reason for claiming GST refund |
Relevant Date |
Excess payment of GST |
Date of payment |
Export or deemed export of goods or services. |
Date of dispatch/ loading/ passing the frontier. |
ITC accumulates as output is tax-exempt or nil-rated. |
Last date of the financial year to which the credit belongs. |
Finalisation of provisional assessment. |
The date on which the tax is adjusted. |
Steps to claim GST refund
To claim a GST refund, taxpayers need to follow a specific procedure outlined as follows:
Step 1: Filing Form RFD-01
Taxpayers must file Form RFD-01, certified by an authorised Chartered Accountant, within 2 years of the relevant date. The relevant date varies depending on the case, such as the departure of goods or completion of services. Failing to adhere to the timeframe may block credit.
Step 2: Auto-Generation of Form RFD-02
Upon filing, details and acknowledgment are auto-generated in Form RFD-02, sent via email and SMS for future reference.
Step 3: Correction with Form RFD-03
If faults or shortages occur in the application, taxpayers must rectify them by filing Form RFD-03.
Documentation for GST refund
Alongside the online application, specific documents need to be attached. For refunds below Rs. 5 lakh, a declaration stating non-utilisation or transfer of the refund amount is required. For amounts above Rs. 5 lakh, a payment proof document must be provided.
Also, refunds below Rs. 1,000 won't be released. Processing a refund application typically takes around 30 days.
Refund process of IGST paid on export of goods (with tax payment)
The refund process for Integrated Goods and Services Tax (IGST) paid on the export of goods involves several steps to ensure seamless reimbursement. Exporters must first file a valid export declaration (Shipping Bill/ Bill of Export) and correctly declare IGST payment against their exports. Once the Customs authorities verify the documents and acknowledge receipt of the exported goods, the IGST refund claim can be filed online through the GST portal. The application undergoes scrutiny for correctness and completeness, after which the refund amount is processed and disbursed directly into the exporter's bank account. This process aims to expedite cash flow for exporters and encourage international trade.
Time limit for claiming the GST refund
Reason for GST Refund |
Relevant Date |
Excess GST payment |
Date of payment |
Export or deemed export of goods or services |
Date of dispatch/loading/passing the frontier |
Accumulation of Input Tax Credit (ITC) due to zero-rated supplies or export of goods or services |
Date of invoice issuance or date of payment received, as applicable |
Finalization of provisional assessment |
Date of tax adjustment |
How to calculate GST refund
Computing your GST refund is easy, and you need to subtract the excess you have paid against the total dues you were supposed to pay. This simple calculation will reveal the amount you have been charged or have paid in excess. Once you know the amount, you can claim a refund within the refund processing timeline based on the type of claim you are making. Utilise tools like the GST calculator to simplify this process and ensure accurate calculations for your refund.
Keep in mind that you will receive form RFD-03 if the authorities find any discrepancy in your refund application. Otherwise, when you file a GST refund, and it gets verified successfully, you will receive form RFD-02 acknowledgement.
How to track GST refund status online?
To track GST refund status online, individuals have two methods:
1. Post-Login Tracking: After logging into the official GST Portal and you can visit our page how to login GST portal for easy login process, then after login navigate to the Services tab, select the desired year, and confirm the bank account. This method provides detailed status information.
2. Pre-Login Tracking: Visit the GST portal, click 'Track Application Status', and enter the ARN without needing to log in. This offers a quick check on refund status. You can visit our page on how to check GST registration to learn how to verify GST registration status.
Additionally, for refunds on IGST paid on exports of goods, a specific login process is required, including selecting the fiscal year and quarterly files, along with entering invoice details for comprehensive status updates.
What are the 3 stages of GST refund status?
The three stages of GST refund status outline a systematic process for taxpayers seeking reimbursement. First, in the submission stage, taxpayers initiate the refund request, furnishing essential details electronically via the GST portal. Subsequently, the processing phase ensues, during which tax authorities meticulously review the application and accompanying documentation, potentially requesting further elucidation. Upon approval, the final stage heralds the confirmation of refund, culminating in the issuance of an order validating repayment. Throughout this journey, taxpayers can track progress via the GST portal, ensuring transparency and facilitating timely resolution. This structured approach underscores efficiency and accountability within the GST refund framework.
Thanks to the online process, the present GST refund process is effective and highly organised. Following the process elaborated above will help you receive refunds directly in your bank account within 30 days of applying. However, be very particular about the details you mention in the refund form, as once your application is received, it goes through rounds of audit and scrutiny. Steer clear of errors and submit your GST refund application within its deadline to receive faster refunds.
Additional read: What is GSTR?
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