GST refund: when you can claim one and how it is processed

Common refund situations

• Exports or SEZ supplies under LUT: refund of unutilised ITC.
• Exports or SEZ supplies with payment of IGST: refund of IGST paid.
• Inverted duty structure: refund of accumulated ITC where input tax rate is higher than output rate.
• Excess balance in the electronic cash ledger.
• Tax paid on a supply later held to be inter-state instead of intra-state, or the reverse.
• Refund arising from an appellate order or of a pre-deposit.

The process and timelines

Under Section 54, the application is filed in RFD-01 within two years from the relevant date. The officer issues an acknowledgement in RFD-02, or a deficiency memo in RFD-03 within 15 days. For zero-rated supplies, 90% can be granted provisionally. The final order in RFD-06 is due within 60 days of a complete application, and Section 56 provides interest if the refund is delayed beyond that.

If the officer proposes rejection, an RFD-08 notice is issued, to be answered in RFD-09. A refund cannot be rejected without an opportunity of hearing.

Common reasons for delay

Mismatched shipping bill and invoice data, ITC not appearing in GSTR-2B, wrong turnover figures in the formula, and missing documents are frequent causes. Refunds of tax also face the test of unjust enrichment. A professional can prepare the statement, reconcile data and follow up through written replies and hearings.

Get it handled for you

Refund stuck or rejected? We rebuild the claim, reply to deficiency memos and follow up with the refund officer in writing. Call or WhatsApp +91 63677 44602, or use the form below.

This guide explains the law in general terms as of October 2026. Time limits and requirements can depend on the facts of your case and on the notice you received.