13 Oct 2026A GST refund lets a business recover tax that has built up in its electronic credit or cash ledger — most often by exporters, suppliers to SEZ units, and manufacturers caught in an inverted duty structure. Claimed correctly and on time, it releases working capital that would otherwise stay locked with the department.
Who can claim a GST refund?
Exporters of goods and services, suppliers to SEZ units and developers, manufacturers with an inverted duty structure, and any taxpayer holding an excess balance in the electronic cash ledger or who has paid tax under the wrong head.
Types of GST refund
- Unutilised ITC on exports under LUT — zero-rated exports without payment of tax; refund of accumulated ITC under Rule 89.
- IGST paid on exports — where exports are made on payment of IGST, the shipping bill is treated as the refund application (Rule 96).
- Inverted duty structure — where the tax rate on inputs exceeds the rate on outputs, the accumulated ITC is refundable under Section 54(3)(ii), computed under the Rule 89(5) formula (input services and capital goods are excluded).
- Excess balance in the electronic cash ledger.
- Deemed exports and SEZ supplies.
- Tax paid under the wrong head, or tax paid in excess.
The RFD-01 process & timeline
Eligibility and quantification → documentation (invoices, shipping bills, LUT, BRC/FIRC and GSTR-2B reconciliation) → file RFD-01 → acknowledgment in RFD-02, or a deficiency memo RFD-03 to be cured and refiled → provisional 90% refund for zero-rated supplies (Rule 91) → final sanction order RFD-06 within 60 days → credit to your bank account. Refunds sanctioned late carry statutory interest.
Time limit — don’t miss the two-year window
Under Section 54, a refund application must be filed within two years from the relevant date — the date of export for goods, the date of receipt of payment for exported services, or the due date of the return for the relevant period in an inverted-duty claim. Missing this window generally forfeits the claim, so dating the relevant period correctly is the first step.
Claiming a GST refund?
See our dedicated GST refund services and export of services GST refund & LUT on SMEAdvisory.in, or contact Regi Tom Antony & Associates to recover the GST that’s rightfully yours.
Frequently asked questions
What is the time limit to claim a GST refund?
Two years from the relevant date under Section 54 of the CGST Act.
How do I claim a GST refund?
By filing Form RFD-01 on the GST portal with supporting documents. For IGST paid on exports of goods, the shipping bill itself serves as the application.
Can I claim a refund under the inverted duty structure?
Yes — where input tax rates exceed output tax rates, Section 54(3)(ii) allows a refund of accumulated ITC, computed under the Rule 89(5) formula.