Phoenix Tax Consultant™ August 6, 2022Exporters in and around Chennai, IT service firms billing foreign clients and manufacturers whose input GST is higher than their output GST often have working capital stuck in the GST portal. Section 54 of the CGST Act, 2017 lets you get that money back – if the claim is filed correctly and on time.
Quick answer: how do I claim a GST refund?
File Form GST RFD-01 on the GST portal within two years of the relevant date (section 54, CGST Act, 2017). Refunds are available for exports and SEZ supplies, inverted duty structure, deemed exports, excess cash ledger balance and excess tax paid. Zero-rated suppliers can get 90% provisionally within 7 days; the final order is due within 60 days, after which 6% interest applies. Refunds below ₹1,000 are not paid.
Types of GST refund
| Situation | How refund is claimed |
|---|---|
| Export of goods with IGST paid | Automatic through the shipping bill and GSTR-1 / GSTR-3B |
| Export of goods or services under LUT (without IGST) | RFD-01 for unutilised ITC |
| Export of services with IGST paid | RFD-01 |
| Supplies to SEZ units / developers | RFD-01 (with or without payment of tax) |
| Inverted duty structure | RFD-01 – ITC on inputs, formula in rule 89(5) |
| Deemed exports | RFD-01 by supplier or recipient |
| Excess balance in electronic cash ledger | RFD-01 |
| Tax paid on wrong head (IGST instead of CGST/SGST) | RFD-01 |
Step-by-step process
- File all GSTR-1 and GSTR-3B returns for the period.
- Compute the eligible refund using the correct statement and formula.
- File RFD-01 with the statements and documents; the amount is debited from the ledger.
- Receive the acknowledgement (RFD-02) or a deficiency memo (RFD-03).
- For zero-rated supplies, provisional refund (RFD-04) of 90%.
- Reply to any show cause notice (RFD-08) within the time given.
- Final order (RFD-06) and payment advice (RFD-05); money is credited to your bank account.
Documents required
- Invoices and GSTR-2B for the period
- Shipping bills / bills of export, and BRC or FIRC for export of services
- LUT acknowledgement for exports without tax
- Statement of inward and outward supplies as per RFD-01 annexures
- Undertaking / self-declaration and CA certificate where required (for claims above the prescribed limit)
- Bank account validated on the GST portal
Benefits of filing refunds on time
- Releases working capital locked in ITC
- Interest at 6% if the department delays beyond 60 days
- Avoids losing the claim after the two-year limit
10 frequently asked questions
1. Who can claim a GST refund? Exporters, suppliers to SEZ units, businesses with an inverted duty structure, deemed export suppliers, and anyone who paid excess tax or has excess balance in the electronic cash ledger (section 54, CGST Act, 2017).
2. Which form is used for a GST refund? Form GST RFD-01 on the GST portal. Refund of IGST paid on exported goods is processed automatically through the shipping bill, without RFD-01.
3. What is the time limit to apply? Two years from the relevant date, which varies by type – for example, the date of export or the due date of the return for the period.
4. How fast will I get the refund? For zero-rated supplies, 90% can be sanctioned provisionally within seven days of the acknowledgement. The final order must be issued within 60 days of a complete application.
5. Is interest paid if the refund is delayed? Yes. Interest at 6% a year is payable if the refund is not paid within 60 days of receiving the complete application (section 56).
6. What is the minimum refund amount? No refund is paid if the amount is less than ₹1,000 (section 54(14)).
7. What is an inverted duty structure refund? When the GST rate on your inputs is higher than on your outputs, accumulated ITC on inputs (not input services or capital goods) can be refunded using the formula in rule 89(5).
8. Do I need an LUT to export without paying IGST? Yes. File the Letter of Undertaking (RFD-11) on the GST portal at the start of each financial year; you can then claim refund of unutilised ITC.
9. Why do refund applications get rejected? Common reasons are mismatch between GSTR-1, GSTR-3B and shipping bills, missing BRC/FIRC, wrong formula, invoices not in GSTR-2B and incomplete documents.
10. Can Phoenix Tax Consultant™ file my GST refund? Yes. Our Tambaram, Chennai team computes the eligible amount, prepares statements and documents, files RFD-01, replies to deficiency memos and tracks the refund. Call 9940349819.
தமிழில்: GST Refund – எப்படிக் கோருவது?
சுருக்கமான பதில்: GST portal-ல் RFD-01 படிவம் மூலம், உரிய தேதியிலிருந்து 2 ஆண்டுகளுக்குள் refund கோர வேண்டும் (CGST Act பிரிவு 54). ஏற்றுமதி, SEZ விற்பனை, inverted duty structure, deemed export, cash ledger மிகுதி, அதிகமாகச் செலுத்திய வரி – இவற்றுக்கு refund உண்டு. ஏற்றுமதியாளர்களுக்கு 7 நாட்களில் 90% தற்காலிக refund; இறுதி உத்தரவு 60 நாட்களுக்குள்; தாமதமானால் 6% வட்டி. ₹1,000-க்குக் குறைவான refund வழங்கப்படாது.
தேவையான ஆவணங்கள்
Invoices, GSTR-2B, shipping bill / BRC / FIRC, LUT, RFD-01 இணைப்பு அறிக்கைகள், சரிபார்க்கப்பட்ட வங்கிக் கணக்கு.
Refund நிராகரிக்கப்படக் காரணங்கள்
GSTR-1, GSTR-3B, shipping bill இடையே பொருத்தமின்மை, BRC/FIRC இல்லாமை, தவறான formula, GSTR-2B-ல் இல்லாத invoices.
அடிக்கடி கேட்கப்படும் கேள்விகள்
1. Refund-க்கு எந்தப் படிவம்? RFD-01. IGST செலுத்திய பொருள் ஏற்றுமதிக்கு shipping bill மூலம் தானாக.
2. கால வரம்பு? உரிய தேதியிலிருந்து 2 ஆண்டுகள்.
3. எவ்வளவு நாளில் பணம் வரும்? ஏற்றுமதிக்கு 7 நாளில் 90%; இறுதி உத்தரவு 60 நாளில்.
4. LUT அவசியமா? IGST இல்லாமல் ஏற்றுமதி செய்ய ஒவ்வொரு ஆண்டும் LUT (RFD-11) தாக்கல் செய்ய வேண்டும்.
5. Phoenix Tax Consultant™ refund தாக்கல் செய்வார்களா? ஆம். கணக்கீடு, ஆவணங்கள், RFD-01, deficiency memo பதில் வரை எங்கள் தாம்பரம், சென்னை குழு செய்யும். அழைக்க: 9940349819 / 8807258797.
Official references
- CGST Act, 2017 – sections 54 and 56 (CBIC tax information portal)
- CGST Rules, 2017 – rules 89 to 97A
- GST Portal – refund user manual and FAQs (tutorial.gst.gov.in)
Money Stuck in GST? Get Your Refund | GST-ல் சிக்கிய பணத்தை refund பெறுங்கள்
We compute, file RFD-01, answer deficiency memos and track your refund to the bank. | கணக்கீடு, RFD-01 தாக்கல், பதில்கள் – refund வங்கியில் வரும் வரை பின்தொடர்வோம்.
Call 9940349819 | Call 8807258797 | jai@phoenixtax.in
Phoenix Tax Consultant™, No. 10A, 2nd Floor, Rajendra Building, Duraisamy Pillai Street, West Tambaram, Chennai 600045
Related: GST Return Filing | Input Tax Credit | GST Notice Reply
Need expert help? Phoenix Tax Consultant™ offers GST Registration in Tambaram, Chennai and GST Return Filing in Tambaram, Chennai (GSTR-1, GSTR-3B, GSTR-9). Call 99403 49819.
