A GST refund is claimed online in Form GST RFD-01 within two years of the relevant date under Section 54 of the CGST Act, for exports and SEZ supplies under LUT, inverted duty structure, excess cash ledger balance and tax paid in excess. The officer must pass an order within 60 days of a complete application, low-risk export and inverted duty claims can receive 90% provisionally, and a refund paid late carries interest at 6% under Section 56. Exporters of goods who pay IGST do not file RFD-01 at all: the shipping bill is the claim. GST refund eligibility depends on the type of refund, tax period, supporting records and statutory conditions. CorporateWalla provides GST refund support including eligibility review, reconciliation, documentation, RFD-01 filing and response to refund-related queries, subject to the applicable GST law. Professional fees from ₹4,499.
A refund is not automatic merely because ITC or cash is available in the electronic ledger. The correct refund category, limitation period, documentary evidence and statutory conditions must be satisfied.
The short answer: file Form GST RFD-01 on the portal (Services, Refunds, Application for Refund) within two years of the relevant date, with the statements, invoices and declarations for your category. The officer checks it for completeness within 15 days, may release 90% provisionally within 7 days of acknowledging it, and must pass the final order within 60 days of a complete application. After that, interest runs.
| Stage | Form | Time limit | Source |
|---|---|---|---|
| Refund application with statements and declarations | RFD-01 | 2 years from the relevant date | Section 54(1), Rule 89 |
| Acknowledgement, or deficiency memo asking for a fresh application | RFD-02 / RFD-03 | Within 15 days of filing | Rule 90 |
| Provisional refund of 90% (zero-rated; inverted duty filed on or after 1 October 2025), low-risk claims only | RFD-04 | Within 7 days of the acknowledgement | Section 54(6), Rule 91, CBIC Instruction 06/2025-GST |
| Notice proposing full or partial rejection, and your reply | RFD-08 / RFD-09 | Reply within 15 days of the notice | Rule 92(3) |
| Final order and payment advice | RFD-06 / RFD-05 | Within 60 days of a complete application | Section 54(7), Rule 92 |
| Interest if the refund is paid late | Shown in RFD-05 | 6% a year from day 61; 9% where the refund follows an appellate or court order | Section 56, Notification 13/2017-Central Tax |
No refund is paid where the amount is under ₹1,000 (Section 54(14)). A claim over ₹2 lakh needs a CA or cost accountant certificate on unjust enrichment under Rule 89(2)(m); up to ₹2 lakh a self-declaration is enough for most categories.
The two-year clock in Section 54(1) starts from a relevant date that is different for each category, so the first job on any claim is to find it. Getting it wrong is the most common reason an old claim is rejected as time-barred.
| Refund type | How it is claimed | Relevant date (two-year clock starts) |
|---|---|---|
| Export of goods on payment of IGST | No RFD-01: the shipping bill is treated as the refund application (Rule 96), processed through ICEGATE once GSTR-1 Table 6A and GSTR-3B match | Date the ship or aircraft leaves India, or goods cross the land frontier |
| Export of goods under LUT (unutilised ITC) | RFD-01, Statement 3 | Date of export, as above |
| Export of services, with or without IGST | RFD-01 with FIRC/BRC evidence | Date foreign exchange is received; invoice date if payment came in advance |
| Supplies to an SEZ unit or developer | RFD-01 with SEZ endorsement | Due date of the return for the period |
| Inverted duty structure (unutilised ITC) | RFD-01, Statement 1 | Due date of GSTR-3B for the period in which the claim arises |
| Deemed exports | RFD-01, by supplier or recipient | Date the return for the deemed export is furnished |
| Excess balance in the electronic cash ledger | RFD-01, category Excess balance in cash ledger | No two-year limit, per CBIC Circular 166/22/2021-GST |
| Tax paid in excess, or under the wrong head | RFD-01 | Date of payment of tax |
| Refund arising from an appellate order or judgment | RFD-01, category On account of assessment/appeal order | Date the order is communicated |
Refund of unutilised ITC is allowed only for zero-rated supplies made without payment of tax and for inverted duty structures (Section 54(3)). It is not available where the outward supply is nil-rated or fully exempt, or where the supplier also claims IGST refund or drawback on the same supply.
An exporter chooses, invoice by invoice, between two routes. Both end in a refund; they differ in cash flow, paperwork and risk.
| Export under LUT (no IGST) | Export on payment of IGST (without LUT) | |
|---|---|---|
| What is refunded | Unutilised ITC on inputs and input services | The IGST paid on the export |
| How you claim | RFD-01 with Statement 3 for the tax period | Goods: automatic through the shipping bill. Services: RFD-01 |
| Cash flow | No tax paid up front | IGST paid first, usually from ITC, then refunded |
| Formula | Rule 89(4), proportionate to zero-rated turnover | Amount of IGST shown on the export invoices |
| Main pre-condition | A valid LUT for the financial year, filed in RFD-11 | GSTR-1 Table 6A, GSTR-3B and the shipping bill must match |
| Typical hold-ups | Formula errors, BRC/FIRC gaps, ITC not in GSTR-2B | Invoice-shipping bill mismatches, ICEGATE errors |
Most service exporters and small goods exporters use the LUT route, because nothing is paid up front. Our explainer on exporting services without IGST under an LUT covers the LUT itself. If your GSTIN has been cancelled, the LUT goes with it, so refunds stop until the registration is restored.
A software firm in Kolkata files its refund for the July to September 2026 quarter. Export turnover (foreign exchange received) is ₹60,00,000, domestic taxable turnover ₹40,00,000, and net ITC on inputs and input services for the quarter is ₹9,00,000.
| Item | Amount |
|---|---|
| Turnover of zero-rated supply | ₹60,00,000 |
| Adjusted total turnover | ₹1,00,00,000 |
| Net ITC | ₹9,00,000 |
| Maximum refund = ₹60,00,000 × ₹9,00,000 ÷ ₹1,00,00,000 | ₹5,40,000 |
| Provisional refund at 90%, if the claim is rated low-risk | ₹4,86,000 |
The amount actually debited and refunded is the lowest of this figure, the credit ledger balance at the end of the period and the balance at the time of filing, so do not use the credit to pay domestic tax before filing.
A manufacturer sells a product taxed at 5% while its main raw materials carry 18%. In the quarter, turnover of the inverted rated supply and adjusted total turnover are both ₹50,00,000, so tax payable on it is ₹2,50,000. ITC on inputs (goods) is ₹5,00,000, and ITC on inputs and input services together is ₹5,60,000.
| Step | Amount |
|---|---|
| Turnover of inverted rated supply × Net ITC ÷ Adjusted total turnover | ₹5,00,000 |
| Less: tax payable × (Net ITC ÷ ITC on inputs and input services) = ₹2,50,000 × 5,00,000 ÷ 5,60,000 | ₹2,23,214 |
| Maximum refund | ₹2,76,786 |
Net ITC here means credit on inputs only: credit on input services and capital goods is not refundable under the inverted duty formula, a reading the Supreme Court upheld in Union of India v. VKC Footsteps (2021). The ₹60,000 of input service credit stays in the ledger.
Illustrative figures. The formula, turnover definitions and exclusions are applied to your actual period data before filing.
Most of these are fixed before filing by a GST reconciliation of books, returns and GSTR-2B. If an order has already gone against you, an appeal lies under Section 107; see GST appeal support.
For a fuller walk-through of eligibility, see our GST refund guide.
GST refund claims can arise in several situations, including:
The refund category matters because the calculation, supporting documents, declaration requirements and limitation period can differ.
Exports and supplies to SEZ units/developers for authorised operations are zero-rated supplies under the IGST framework, subject to the statutory conditions.
For eligible zero-rated supplies, a registered person may generally claim refund through the route permitted for the transaction, including:
The correct route should be determined from the transaction facts.
“Zero-rated” does not mean “every export automatically receives a refund.” Eligibility, documentation, realisation/export evidence, invoice linkage, ITC eligibility and other conditions must be checked.
For eligible refund categories, the claim can involve accumulated input tax credit.
The calculation is not simply “total ITC in the ledger.” The relevant statutory formula, eligible ITC, turnover and transaction-period data must be applied.
Refund claims can therefore require:
A refund may be available for accumulated ITC arising from an inverted duty structure where the statutory conditions are satisfied.
However, not every accumulation of ITC qualifies. The supply structure, input/output tax rates, excluded supplies/inputs and applicable rules must be examined.
The GST refund calculation should use the statutory formula applicable to the relevant period rather than a generic percentage.
A refund of eligible excess balance in the electronic cash ledger can be different from an ITC refund.
The taxpayer should first reconcile:
The refund route and amount should be determined after this reconciliation.
The limitation period depends on the refund category and the statutory provisions applicable to the claim.
For many refund categories, the general framework refers to two years from the relevant date, but the “relevant date” is not identical for every refund category. It is not correct to assume that every GST refund must be filed within two years from the invoice date.
Two points narrow or widen the window in practice. Where a deficiency memo in RFD-03 is issued and you file a fresh application, the time between the original RFD-01 and the memo is excluded from the two years (proviso to Rule 90(3)). And a refund of excess cash ledger balance has no two-year limit at all, as CBIC Circular 166/22/2021-GST clarified. The relevant date for each category is in the table above.
Where the GST portal prescribes Form GST RFD-01 for the refund category, CorporateWalla can assist with:
The exact portal form and supporting requirements should be verified for the category and tax period.
Assess whether the proposed claim falls within an eligible refund category.
Reconcile books, GST returns, ITC, invoices and export/SEZ data as relevant.
Prepare the calculation under the applicable statutory formula.
Prepare and file the prescribed GST refund application where included in scope.
Assist with replies to refund-related notices, deficiency memos and document requests within the agreed engagement.
Reconcile the refund sanctioned or rejected with the GST portal and accounting records.
GST refund pricing is scope-based. The professional fee may depend on:
Government dues, professional fees and any third-party costs are identified separately.
| Service | Purpose |
|---|---|
| GST refund | Claim repayment of eligible tax/ITC/cash under GST law |
| GST reconciliation | Identify differences between books, GST returns, ITC and related records |
| GST return filing | Report outward supplies, tax liability and eligible ITC |
| GST registration | Obtain GST registration for an eligible person |
| GST notice support | Respond to a notice/order or departmental communication |
Refund work often requires reconciliation, but reconciliation alone does not create refund eligibility. For a departmental notice or order, see GST notice support.
Pick the speed and depth that matches your need. Same quality, same CA team — only the timeline changes.
Timeline: 7 days to 3 months (indicative)
Timeline: 7 days to 3 months (indicative)
Timeline: 7 days to 6 months (indicative)
Government fee — paid by you at actuals
There is no government fee to file a refund application. We quote fixed rather than as a percentage of the claim, because a percentage fee gives us an incentive to file claims we know will be cut down. Interest on a delayed refund arises only where the statutory conditions are satisfied.
Every price above is a professional fee, excluding GST and government charges. 50% upfront, 50% on delivery.
All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.
Assess whether the proposed claim falls within an eligible refund category.
The category matters because the calculation, supporting documents, declaration requirements and limitation period can differ.
Check the limitation period and the category-specific relevant date applicable to the claim.
Reconcile books, GST returns, ITC, invoices and export/SEZ data as relevant.
Blocked/ineligible ITC cannot simply be included because it appears in a ledger; eligibility is determined under the applicable GST provisions.
Prepare the calculation under the applicable statutory formula.
Prepare the supporting documents and statements required for the refund category and tax period.
Prepare and file the prescribed GST refund application, such as Form GST RFD-01 where the portal prescribes it, and track the ARN.
Assist with replies to refund-related notices, deficiency memos and document requests within the agreed engagement.
Follow up on the final refund order.
Reconcile the refund sanctioned or rejected with the GST ledger, accounting records and bank receipt.
Tell us your requirement, a CA will call you in 30 minutes.
The proposed claim is assessed against the eligible refund categories before any computation or filing begins.
Books, GST returns, ITC, invoices and export/SEZ data are reconciled, and the calculation is prepared under the applicable statutory formula.
The prescribed refund application is prepared and filed where included in scope, with support on deficiency memos and document requests.
The refund sanctioned or rejected is reconciled with the GST portal and accounting records.
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