Overview

GST refunds are crucial for maintaining working capital, especially for exporters and businesses under an inverted duty structure (where input tax > output tax). Timely refunds support liquidity and reduce tax burdens on businesses.

Documents Required

• GST RFD-01 form

• GSTR-1 and GSTR-3B filings

• Export invoices and shipping bills

• Bank realization certificate (BRC) or FIRC

• Statement of input tax credit

• LUT copy (if applicable)

• Declaration under Rule 89(2)(l) and (m)

• Any supporting CA certificate (in some cases)

Refund Process (Step-by-Step)

1. Login to GST Portal

2. Go to Services > Refunds > Application for Refund

3. Choose the refund category

4. Fill and upload required details/documents

5. Submit Form GST RFD-01

6. ARN generated and refund processing begins

7. If approved, refund is credited to your bank account

8. Get Form GST RFD-06 (refund sanction order)

Eligibility for GST Refund

You can apply for a refund in the following cases:

• Export of goods/services without payment of IGST (under LUT/Bond)

• Export with payment of IGST (refund of IGST paid)

• Inverted duty structure (tax on inputs > tax on output)

• Excess balance in the electronic cash ledger

• Finalization of provisional assessment

• Refund due to order/judgment of appellate authority

• Excess payment of tax

• Supplies to SEZ units or developers

• Deemed exports

Benefits of GST Refund

• Enhances cash flow and liquidity

• Reduces compliance and tax burden

• Encourages exports by making them zero-rated

• Supports inverted duty industries