GST Refund Filing in India: Step-by-Step Online Process, Rules & Common Mistakes

GST Refund Filing is an essential compliance mechanism and framework under India’s Goods and Services Tax (GST) framework that enables eligible taxpayers to claim a refund of excess tax paid or unutilised input tax credit (ITC). Although GST was introduced to simplify indirect taxation, the GST refund process remains technical due to statutory conditions, prescribed forms, strict timelines and detailed documentation requirements.

A clear understanding of how to file GST refund online, applicable GST refund rules, prescribed forms, and common errors is essential to ensure timely processing and avoid rejection of claims.

At Compliance & Registration Services (CRSPL), we assist businesses, exporters, and individuals in managing their GST refund claims in strict compliance with GST law, ensuring accuracy, faster processing and reduced litigation risk.

What is GST Refund Filing?

GST Refund Filing refers to the statutory process through which a registered or eligible person applies for a refund of GST paid to the government in excess or unutilised input tax credit. Refunds may arise due to excess tax payment, inverted duty structure, zero-rated supplies such as exports, cancellation of GST registration or orders passed by tax authorities or appellate bodies.

Refunds under the GST are primarily governed by Section 54 of the Central Goods and Services Tax Act, 2017, read with the Rules 89 to 97A of the CGST Rules, 2017. The refund application must be filed online through the GST common portal using the prescribed GST refund application form – Form GST RFD-01.

GST Refund Rules and Eligibility

Understanding the GST refund rules and various eligibility conditions is mandatory before filing a claim. A refund is allowed only if it falls within the categories prescribed under GST law and subject to fulfilment of prescribed conditions, including the principle of unjust enrichment.

Who is Eligible to File a GST Refund in India?

The following persons are eligible for GST Refund Filing, subject to conditions: -

• Registered GST taxpayers with excess tax payment
• Exporters making zero-rated supplies of goods or services
• Taxpayers affected by inverted duty structure
• Persons whose GST registration has been cancelled
• Unregistered persons in specific notified cases (such as excess tax paid due to cancellation of a contract)
• International tourists, subject to prescribed conditions

Except in specified cases such as exports and ITC refunds, the claimant must establish that the incidence of tax has not been passed on to another person, in accordance with the unjust enrichment provisions.

Types of GST Refunds Under GST Law

GST law recognises multiple categories of refunds, each governed by specific rules and documentation requirements. Common types include: -

• Input Tax Credit refund under GST due to inverted duty structure
• GST refund for exporters (zero-rated supplies made without payment of tax under LUT or with payment of IGST)
• Refund of excess amount in the electronic cash ledger
• Refund arising out of assessment, provisional assessment, appeal or adjudication order
• Refund on cancellation of GST registration

The refund category selected in the application must strictly match the nature of the claim.

GST Refund Claim Procedure: Step-by-Step Online Process

The GST refund process is predominantly online and must be followed according to the portal instructions.

Step 1: Log in to the GST Portal
Log in to the official GST portal by using your correct username and password.

Step 2: Choose Refund Application
Go to Services → Refunds → Application for Refund.

Step 3: Select the Refund Type
Select the refund category that applies to or is related to your case and category from the available options.

Step 4: Fill GST Refund Application Form (RFD-01)

Complete Form GST RFD-01 by providing details of the refund amount, relevant tax period, grounds for refund and bank account information.

Step 5: Upload Supporting Documents

Upload mandatory documents such as invoices, shipping bills, statements, declarations and undertakings as prescribed under Rule 89 of the CGST Rules.

Step 6: Submit Application

Submit the application using a Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC). Upon the successful submission, an Application Reference Number (ARN) is generated.

Step 7: Acknowledgement and Processing

• If it gets completed, the officer issues Form GST RFD-02 (Acknowledgement)
• If deficiencies are found, Form GST RFD-03 (Deficiency Memo) is issued, requiring rectification and re-filing

Step 8: GST Refund Status Check

Applicants can track the refund status online using the ARN on the GST portal.

Documents Required for GST Refund Filing

Accurate and complete documentation is important for the purpose of successful GST Refund Filing. Commonly required documents include: -

• GST refund application form (Form GST RFD-01)
• Filed GSTR-1 and GSTR-3B returns
• Tax invoices and debit notes
• Export invoices, shipping bills and LUT/Bond (for exporters)
• Bank account details and cancelled cheque
• Declaration under Rule 89
• Undertaking relating to unjust enrichment
• CA certificate, where applicable

Document requirements may vary depending on the refund category.

GST Refund Claims Manually: Is It Allowed?

As per the recent and latest GST procedures, GST refund claims must be filed online through the GST portal. Manual filing is generally not permitted.

However, in exceptional cases, such as certain refunds for unregistered persons or any specific directions issued by the various tax authorities, manual filing may be allowed as per departmental instructions.

Professional consultation is strongly recommended before initiating any manual GST refund claim.

Time Limit for Filing GST Refund Application

A GST refund application must be filed within two years from the relevant date, as prescribed under Section 54 of the CGST Act. The relevant date differs based on the nature of the refund, such as: -

• Date of export of goods or services
• Date of payment of tax
• Date of cancellation order
• Date of appellate or adjudication order

Applications filed beyond the given prescribed time limit are liable to rejection.

Common Mistakes in GST Refund Filing

GST refund claims are usually got delayed or rejected due to procedural errors, including: -

• Incorrect selection of refund category
• Mismatch between GSTR-1 and GSTR-3B data
• Incomplete or incorrect documentation
• Errors in bank account details
• Claiming ineligible input tax credit
• Non-response to deficiency memos
• Filing after the statutory time limit

Expert handling significantly reduces these risks.

Conclusion

GST Refund Filing plays a crucial role in maintaining the liquidity and working capital for the various businesses and exporters. A clear and proper understanding of the GST refund process, statutory rules, prescribed forms and various procedural requirements is important to ensure timely and successful refunds. For professional assistance and hassle-free GST refund services, Compliance & Registration Services (CRSPL) remains your trusted GST compliance partner.

FAQs on GST Refund Filing

1. What is GST Refund Filing and how does it work?
   GST Refund Filing is the process of claiming excess GST paid or unutilised ITC through an online application filed on the GST portal using Form RFD-01.
   
   
2. Who is eligible to file a GST refund in India?
   Registered taxpayers, exporters and unregistered persons in limited cases are eligible, subject to GST refund rules and conditions.
   
   
3. What are the different types of GST refunds under GST law?
   Refunds include excess tax paid, ITC refunds, export refunds, inverted duty structure refunds and refunds due to cancellation or assessment orders.
   
   
4. What is the time limit for filing a GST refund application?
   A GST refund application must be filed within two years of the relevant date.
   
   
5. Which documents are required for GST Refund Filing?
   Invoices, returns, Form RFD-01, bank details, declarations and the category-specific supporting documents are required.
   
   
6. Can an unregistered person claim a GST refund in India?
   Yes, but only in specified cases and subject to conditions prescribed under GST law.