GST Refund Process and Procedure
GST: Refund Process and Procedure

GST Refund Introduction:

The GST refund process is a smooth flow of funds and compliances till the end. The Government provides a hassle-free refund process to facilitate such a smooth flow. The current tax structure of Government is complex, and it takes a month or sometimes years to get a refund. GST offers an invoice tracking system based on efficient and more evident manners. The system verifies the transactions on an individual basis. Thus, it has become a massive relief for manufacturers or exporters.

GST Refund

GST refund policy helps the Applicant to get their money back if they paid more than the GST liability. When taxpayers pay an extra GST in some instances, the Government has created a standardized GST refund process. However, the GST refund process has a time limit. The subscriber has to refund his money within the time limit.

GST Refund Process:

Step 1:

Firstly, there is a need to file a form RFD-01 that is important to certify by an authorized Charted Accountant within two years. It is essential to know for taxpayers that if they don't apply within a given time frame, it will lead to the blockage of credit.

Few cases Listed Below:

For goods exported through air
For goods transported through land
For excess unutilized ITC
For following a provisional assessment
For Services

When Taxpayer applied for a refund, the details and information will automatically generate in Form RFD-02. The applicants will get the same information through a given email and an SMS.


If applicants give faults info or shortage in GST refund, they have to fill Form RFD-03 to correct the errors they will send you.

Documentations Require For GST Refund:

The applicants are not only applying on an online refund application; they also need to attach the specific documents. There have two things to know about the GST Refund. Firstly, if the GST refund is below 5, Lakhs then needs a taxpayer declaration, and this refund doesn't send shareholders individually. Secondly, if GST Refund is above 5, Lakhs needs affirmation and provides documents that would prove the tax paid.

Need to Note:

If the Applicant is foreign, then in this situation, application filled Form within 90 days for GST Refund. This application will fill through Form RFD-10.
The Applicant doesn't get back refund if it is less than Rs.1000/-
It would take 30 days for GST Refund.

GST Refund Order:

Whenever the Applicant claims on Tax pay, then the authorized officer will issue the refund order. So the Applicant needs to fill the order in Form RFD-04 then the Applicant will get 90% of the refund. These are the following cases in which the order will claim.

When the GST rating is more than five by the Taxpayer
, they have an unresolved review related to refunds.
In that scenario, the authorized officer will give the Applicant a green signal after validating all the documents, and then the final order will pass by the officer. However, every time the Taxpayer files their refund, the Government has a cash ledger that gets updated instantly. The purpose is to match it with credit; otherwise, the refund will not release.

FAQ of GST Refund Process:

Can the Applicant Claim a GST interest refund after two years of payment?

No, the Applicant has to claim a GST interest refund within two years of its payment.

How long the Applicant will take to get a refund of GST?

When the Applicant applied for a refund application, it will grant within 90 days.

How does the GST refund send to the Applicant?

The GST refund is sending through the beneficiary bank account.

Is the interest claim on the GST amount paid?

Yes, interest will claim on GST to have all documents for a GST refund.

 How to apply for GST Refund?

You can apply online for GST Refund.

Drafted By:
CS.A.Maniraj.,B.Com.,ACS.,CA(Fin), Independent Director 
Certified CSR Professional., Certified GST Professional

GST Refund Process and Procedure
Maniraj Anantham 1 March, 2024
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