Cases and Procedure for Claiming GST Refund

Current GST return filing requires every month, GSTR-1 is to be filed to report Sales and one must file GSTR-3B to take the ITC and make necessary GST Payment. If a refund is required to be claimed the same can be done by filing relevant refund related forms.


Cases in which refund allowed:


Below is the likely of cases for which refund can be claimed.

  1. Zero rated supplies.

  2. Rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies).

  3. Other conditions which the Government notifies.

  4. Excess payment of tax is made due to mistake or omission.

  5. ITC accumulation due to output being tax exempt or nil-rated

Time limit for claiming the refund:


A person can make an application for refund of GST before expiry of 2 years from the relevant date as may be prescribed. No refund shall be paid to an applicant if the amount of refund is less than Rs. 1,000.


Here is the likely list of dates relevant to the case


Cases in which refund not allowed:

  1. For Goods or services which are notified by council.

  2. Refund of unutilized input tax credit in where the goods exported out of India are subjected to export duty.

  3. Refund of unutilized input tax credit if the supplier avails the drawback in respect of central tax or claims/ the refund of the integrated tax paid on such supplies.

How to claim GST Refund?


The refund application has to be made in Form RFD 01 within 2 years from relevant date.

and it should also be certified by a Chartered Accountant.

What is the procedure for filing an application:


The application is to be submitted along with the documents

  1. To prove that a refund is due

  2. To establish that the amount of tax and interest was collected from or paid by applicant and incidence of tax and interest had not been passed to any other person.

  3. If the amount claimed is less than Rs. 2 lakhs, the applicant may file a declaration rather than providing evidence certifying that the incidence of such tax and interest had not been passed on to any other person.

  4. A Certificate in Annexure 2 of FORM GST RFD-01 issued by a chartered accountant or a cost accountant certifying that incidence of tax, interest or any other amount claimed as refund has not been passed on to any other person, in a case where the amount of refund claimed exceeds 2 lakhs.

Such declaration or certificate is not required when the amount of refund is related to specific case mentioned in the act. It may be like

  1. Refund of tax paid on zero-rated supplies of goods or services or both or on inputs or input services used in making such zero-rated supplies.

  2. Refund of unutilised input tax credit under sub-section(3).

  3. Refund of tax paid on a supply which is not provided, either wholly or partially, and for which invoice has not been issued, or where a refund voucher has been issued.


Interest on delayed remittance of refund:


If the refund is not paid within 60 days from the receipt of application then interest is payable to the applicant at the rate of 6% or lower rate as may be decided from the date immediately after the expiry of 60 days from the date of receipt of application till the date of refund of such tax.



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