GST Refund: Step-by-Step Process to GST Refund Claims

Understand the GST refund process, eligibility, time limits, documentations, calculation, claim steps, and refund status tracking.
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4 min read
03 June 2025

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.

Tip: If you're looking for financial flexibility for your business, you can also check your business loan eligibility.

Additional read: How to verify your GSTIN.

What is the GST refund process?

To make it easier to get a GST refund, the Income Tax Department has made the process fully online. You can apply for a refund through your registered GST account anytime within two years from a specific “relevant date.” This date depends on the type of refund you are claiming, so it’s important to follow the rules carefully.

  • If you paid extra GST by mistake, the date you made GST payment is your relevant date.
  • For exports or deemed exports, the relevant date is when the goods were sent, loaded, or crossed the border.
  • If your Input Tax Credit (ITC) has piled up because your final product is tax-free or taxed at zero rate, the relevant date is the last day of the financial year it applies to.
  • If you overpaid GST due to a provisional assessment being finalised, the relevant date is when the tax was adjusted.

Make sure to apply before the two-year deadline from the relevant date to avoid missing your refund.

Additional read: What taxes has GST replaced?

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When can the GST refund be claimed?

Taxpayers in India can apply for a GST refund in the following situations:

  • When extra GST is paid by mistake or due to errors in filing.
  • When there is unused Input Tax Credit (ITC) from the export or deemed export of goods or services.
  • When IGST is paid on the export of services with tax payment.
  • When purchases are made by UN organisations or foreign embassies.
  • When ITC builds up because the tax on finished goods is lower than the tax paid on raw materials – this is called the inverted duty structure.
  • When the final amount is decided after a provisional assessment, appeal, or other official decision, and excess tax was already paid.
  • When international tourists buy goods in India, they can claim a GST refund when they leave the country.

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 submit GST refund pre-application form

Before applying for a GST refund, taxpayers are required to complete the Refund Pre-Application Form. This form collects essential business details including Aadhaar number, income tax history, export-related data, expenses, and investment information. Importantly, the original GST refund invoice must be filed only after this form is submitted.

Submission of the pre-application form is mandatory and must be completed before filing the actual GST refund application. Once submitted, the form cannot be edited or modified, and it does not require a digital signature. Therefore, it is crucial to enter all information carefully and accurately.

How to fill the GST refund pre-application form:

Before applying for a GST refund, taxpayers must first complete the Refund Pre-Application Form. This form collects key business details like your Aadhaar number, income tax records, export information, business expenses, and investments. You must also upload the original GST refund invoice before submitting this form.

Submitting the pre-application form is a mandatory step before filing the main refund claim. Remember, once you submit this form, you cannot make any changes to it, and it does not require a signature. So, enter all information carefully and double-check before submission.

Follow these simple steps to fill out the Refund Pre-Application Form:

Step 1: Go to the official GST portal. Under the ‘Services’ section, click on ‘Refunds’ and then select ‘Refund Pre-Application Form’.

Step 2: Fill in all the required information on the form and click ‘Submit’. You will receive a confirmation message on the screen.

Here are the main details you’ll need to provide:

  • Type of business – for example, manufacturer, trader, merchant exporter, or service provider.
  • Date when your Import Export Code (IEC) was issued (for exporters only).
  • Aadhaar number of the main authorised signatory (this is compulsory).
  • Total export value for the financial year 2019–2020, based on GSTIN (for exporters only).
  • Income tax paid in the financial year 2018–2019.
  • Advance tax paid in the financial year 2019–2020.
  • Investment details and capital expenses made in the financial year 2018–2019.

This form helps the authorities verify your eligibility and speeds up the refund process, so make sure all details are accurate.

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

When applying for a GST refund, you need to submit certain documents. The required documents depend on the type of refund you are claiming. Here are the main documents needed for different GST refund claims:

GST Refund for Exports
If your refund claim is for exports or supplies to Special Economic Zones (SEZs), you must provide:

  • The invoice related to the transaction.
  • A statement with the number and date of shipping bills or export bills, along with the number and date of related export invoices.
  • For export of services, include tax invoices and bank certificates showing payment received in foreign currency.

GST Refund for Supply to SEZ
For supplies to SEZ units, you need:

  • An endorsement from the Proper Officer confirming the goods or services were received in the SEZ.
  • The tax invoice.
  • A declaration from the SEZ unit confirming they have not claimed input tax credit on the purchase.

GST Refund for Accumulated Input Tax Credit (ITC)
If you are claiming a refund only for accumulated ITC, you must submit a statement with invoice details as per GST rules. Note: No refund is allowed on ITC paid for construction services meant for sale or when input tax rate is higher than output tax rate.

GST Refund Due to Orders or Judgments
If your refund claim is based on a court or authority order, submit:

  • The order reference number.
  • Relevant tax invoices.

Inverted Duty Structure Refund
If your refund is because the tax on inputs is higher than the tax on outputs, include a statement with the invoice numbers and dates for both received and issued invoices during the tax period.

Refund Due to Change in Supply Nature
If the refund is because the supply was first treated as intra-State but later changed to inter-State, provide a statement showing details of these transactions.

Make sure to provide all the necessary documents clearly to avoid delays in your GST refund claim.

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.

If you are seeking additional working capital during this period, you could also check your pre-approved business loan offer to help manage any immediate expenses.

How to calculate GST refund

Let’s look at a simple example of paying extra GST by mistake. Mr. B had to pay Rs 50,000 as GST for the month of September. However, due to an error, he paid Rs 5 lakh. This means he paid Rs 4.5 lakh more than required. Mr. B can claim this extra amount as a refund within 2 years from the date of payment.

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 the GST refund process are as follows:

Step 1: Submit a refund request
The GST refund process begins when a taxpayer submits a refund request. This can be done online through the GST portal. The application should include all necessary details, such as the amount of the refund, the tax period for which the refund is being claimed, and any required supporting documents.

Step 2: Processing your refund application
In the second stage, the GST authorities will process the refund request. They may ask the taxpayer for more information or clarification if needed. Once the request is reviewed and approved, the refund amount will be transferred to the taxpayer’s bank account.

Step 3: Refund confirmed
The final stage is when the GST authorities approve the refund. After approval, they will issue a confirmation order and the refund amount will be credited to the taxpayer’s bank account. Taxpayers can track the status of their refund application at each stage by logging into the GST portal, which will provide regular updates, including requests for any additional information or clarification.

What happens after applying for a GST refund?

When a taxpayer or refund applicant submits a refund application, it will appear on the dashboard of the tax officer or refund processing officer as a pending task. The officer will review and verify the application along with the submitted documents.

The status of the filed applications can be tracked using the “Track Application Status” option under Refunds. After inspection by the GST authorities, the refund amount will be credited to the applicant's bank account.

Here are the actions taken by the officer:

  • Provisional refund: In some cases, a provisional refund can be granted using Form RFD-04. This must be issued within 7 days from the acknowledgement date, with at least 90% of the claimed refund granted
  • Acknowledgement: If the refund application is complete, an acknowledgement in Form RFD-02 will be issued within 15 days from the filing of the application
  • Withdrawal of application: If the applicant wishes to withdraw the refund application, they can do so using Form RFD-01W. Once submitted, the refund amount, which was previously debited from the taxpayer’s electronic credit or cash ledger, will be credited back to the respective ledger
  • Deficiency memo: If there are any issues with the application, the officer can issue a deficiency memo in Form RFD-03 within the same time limit. If the refund was debited from the taxpayer’s ledger at the time of filing, an auto re-credit will be made to the electronic cash or credit ledger. A fresh application must be submitted to rectify the issues
  • Clarification notice: If the officer needs clarification, they can issue a notice in Form RFD-08 for rejecting the application or recovering a refund granted by mistake. The applicant must respond within 15 days using Form RFD-09
  • Sanction or rejection order: After reviewing the application, the officer will issue a sanction or rejection order in Form RFD-06. If the refund is approved, a payment order will be passed in Form RFD-05, or sometimes, RFD-05 is issued after RFD-04
  • Withholding refund: In some cases, the officer may pass an order to withhold the sanctioned refund in Form RFD-07 (part-B). In these cases, Form RFD-05 will not be issued
  • Re-credit of refund: If the refund is rejected or if a provisional refund was granted, an order for re-crediting the refund amount to the taxpayer’s electronic cash or credit ledger will be passed in Form PMT-03

Conclusion

Imagine your business as a large puzzle, and sometimes you accidentally pay extra pieces, like taxes. To get those extra pieces back as your GST refund, you need to follow the puzzle's instructions (tax rules). Collect your proof (invoices), show where you paid extra, and your refund will be sorted out! If you're facing financial challenges while waiting for your refund, a business loan could provide the necessary funds to keep your operations running smoothly.

However, delays in processing GST returns can affect manufacturers’ cash flow and working capital. To avoid this, the GST application, claim, payment, and refund process has been made available online, making it quicker and smoother. This allows manufacturers, sellers, and exporters to easily file their GST refund claims and track their refund status directly from their computer.

Additional read: What is GSTR?
Additional read: What is GSTR-1
Additional read: What is GSTR-3B
Additional read: e-Way Bill

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Frequently asked questions

How do I claim my GST refund?

You can claim your GST refund by filing an online application in form GST RFD-01 within two years from the relevant date, along with the required documents and declaration.

What is eligible for GST refund?

You are eligible for a GST refund if you have paid excess tax, exported goods or services, made zero-rated supplies, claimed lower income than presumptive income, or have unutilised input tax credit.

What is a 90% GST refund?

The 90% GST refund is a provisional refund granted to exporters within seven days of filing the refund application, subject to certain conditions and safeguards. The remaining 10% is paid after verification of documents.

What is the new refund formula in GST?

The new refund formula in GST is based on the net input tax credit (ITC) method. It calculates the refund amount as the product of net ITC and turnover of zero-rated supplies divided by adjusted total turnover.

How many days will it take to get a GST refund?

According to the GST refund process, the GST officer has to process the refund application within 60 days from the date of submission of the application. If the refund is not paid within 60 days, an interest has to be paid on the delayed refund.

Can I get a GST refund on my car?

In India, GST (Goods and Services Tax) is not refundable for cars. While certain export-related scenarios may qualify for a GST refund, the purchase of a car for personal use within the country does not generally allow for a GST refund.

What is the rule for GST refunds?

GST refunds are governed by specific rules. To claim a refund, businesses must file a refund application within the stipulated time frame. Eligibility criteria, proper documentation, and adherence to procedural requirements are essential. The refund process is subject to scrutiny, ensuring compliance with GST regulations for a successful claim.

How do I get my GST refund back?

To get your GST refund, you will need to apply for it through the GST portal by submitting a refund application form. The application will be processed and verified by the GST department, and if approved, the refund amount will be credited to your bank account.

What is the duration within which I can request a GST refund?

You can request a GST refund within two years from the end of the financial year in which the tax was paid. It is important to file for a refund within the specified duration to ensure a smooth and hassle-free process. Late applications may not be accepted, and you may have to undergo additional scrutiny if there is a delay in submission.

How many types of refunds are there in GST?

Here are the different types of refunds available under the GST system:

  1. Refund of excess balance in the electronic cash ledger
  2. Refund of accumulated Input Tax Credit (ITC) due to exports of goods/services without payment of tax
  3. Refund for supplies made to SEZ units/developers (without payment of tax)
  4. Refund of ITC accumulated due to the inverted tax structure
  5. Refund to the recipient of deemed exports
  6. Refund for supplies made to SEZ units/developers
  7. Refund on account of export of goods
  8. Refund on account of export of services
  9. Refund of tax paid on an intra-state supply that is later considered an inter-state supply, and vice versa
  10. Refund by the supplier of deemed exports
  11. Refund for excess tax payment
  12. Refund for other reasons
  13. Refund on account of assessment, provisional assessment, appeal, or any other order
  14. Refund to embassies or international organisations
How to check the GST refund amount?

Go to Services > Track Application Status > Select Refund > Enter your ARN > Click SEARCH to track your refund application without logging into the GST Portal. You can only track your refund using the ARN without logging into the portal.

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