What is the Refund Process Under GST?

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  • 27 Dec 2023
What is the Refund Process Under GST?

Key Highlights

  • The GST refund process allows taxpayers to claim excess taxes paid for GST the tax.
  • Applicants can submit refund requests on the online GST portal and provide the necessary information.
  • The GST Act outlines various cases in which taxpayers are eligible for a refund. These include exports, supplies to SEZs, and tax refunds for UN & embassy purchases.
  • The key objective of the GST refund process is to streamline the refund procedure and avoid any significant delays.
  • You must select the refund type and provide all the relevant information to claim your refunds. Also, provide the bank account details and submit the necessary documents.

GST refund refers to the process by which taxpayers can claim a refund. Those who have paid more than their due GST amount are eligible for a GST refund. They must submit the refund application on the GST website and provide the required information.

A delayed refund might have a negative impact on the working capital and cash flow of manufacturers and exporters. Therefore, one objective of the GST implementation is to make the refund procedure more smooth. This ensures that exporters and manufacturers don't have problems because of delays. Tax administration gets more efficient by ensuring the refunds are done swiftly.

Refund-related rules of the GST regime are designed to simplify and streamline the refund process. As a result, a standardized form for refund requests has been developed. The online claim submission process may be finished promptly.

In accordance with Section 54 of the GST Act, a taxpayer can claim a refund in any of the following cases.

  • Tax paid on deliveries of goods or services with a 0% GST rate
  • Export of products or services
  • Supplies provided to special economic zones (SEZ) developers and units
  • Tax refunds for purchases made by the United Nations (UN), embassies, etc.
  • Reimbursement due to a ruling, agreement, directive, or recommendation by the appellate tribunal, appellate authority, or any other court
  • Refund of Input Tax Credit accrued due to duty structure inversion
  • Completion of the provisional tax assessment
  • Pre-deposit reimbursement
  • Excess tax payment because of an error
  • Refunds of GST paid by foreign visitors on items they transported outside of India at the time of their departure
  • Refunds related to refund vouchers issued for taxes on loans against which goods/services are not supplied
  • Refunds of Central GST (CGST) and State GST (SGST) when the intra-state and inter-state taxes are interchanged.

Here is a step-by-step guide to the GST refund process.

  1. Log in to the GST portal to initiate the refund process under GST.
  2. Select "Application for Refund" in the "Services" tab. Then go to the "Refunds" section.
  3. Choose the desired refund type from the provided list and click "Create".
  4. The electronic cash ledger balances will be shown on the screen. The numbers will be completed automatically.
  5. Find the "Refund Claimed" table by swiping it down. Enter your refund information here.
  6. You may access your electronic liability ledger by clicking on the hyperlinked text beneath the table. To see if you have any unpaid bills or obligations, click through. These fees may have an impact on your refund request.
  7. After that, select "Go Back to Refund Form."
  8. Select the bank account where you want to receive the GST refund using the drop-down option.
  9. Include any supporting files in a PDF upload. The maximum size of the files is 5MB, and you can attach up to four of these documents.
  10. Select the authorised signatory's name from the drop-down menu by clicking the checkbox on the declaration page.
  11. There are now two ways you can continue: a. If you prefer to "File with DSC", select the authorised signatory's certificate and click "Sign". b. You will get an email or SMS with a one-time password (OTP) if you choose to "File with EVC." Enter this OTP, then select "Verify."
  12. A receipt will now be generated. Download it and keep it safe.


India's GST legislation has simplified the procedures for handling refund claims for GST. All applications for GST refunds must be submitted online by the taxpayer using the GST Common Portal in the prescribed format. You will get an acknowledgment for the refund application within 14 days after applying. Additionally, an individual must file monthly returns to receive the refund amount in the credit balance. So, you must follow a thorough procedure to avail refunds. Hence, it is essential to understand the refund process under GST properly.

FAQs on GST Refund Process

Yes, taxpayers shall receive the due refund if they add data in the next month.

A taxpayer must not fill out GSTR 2 & GSTR 3 if he has submitted GSTR 1 and GSTR 3B.

According to the GST rules, all refund claims must be submitted within two years.

ITC will not be provided for any taxes paid due to short tax payments or, non-payment of taxes, or excessive refunds. Moreover, taxpayers will not receive refunds in case of fraud, false information, hiding relevant facts, etc.

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