GST Refunds Procedures

A GST refund refers to the process where a registered taxpayer can claim the return of excess tax paid or unutilized Input Tax Credit (ITC) under various circumstances as permitted by the GST law. The refund mechanism ensures that tax is not a cost to the business and promotes a transparent, efficient, and fair tax system..

At VETRI AUDIT SERVICES PRIVATE LIMITED, we guide businesses through every step of the GST refund process, ensuring accurate documentation, timely filing, and end-to-end compliance..

Common Scenarios Where GST Refunds Arise

Refunds can be claimed in the following situations:

• Export of goods/services without payment of IGST (under Letter of Undertaking – LUT)
• Export of goods/services with payment of IGST
• Inverted duty structure – when the rate of tax on inputs is higher than that on outputs
• Excess balance in the electronic cash ledger
• Finalization of provisional assessments
• Deemed exports (supplies to EPCG/Advance Authorisation holders, etc.)
• Tax wrongly paid (e.g., intra-state supply treated as inter-state or vice versa)
• Supplies made to SEZ units or SEZ developers

GST Refund Forms Overview

Step-by-Step GST Refund Procedure

Timelines to Remember

• Refund Application Deadline: Within 2 years from the relevant date
• Refund Processing Time: Within 60 days of RFD-04 acknowledgment
• Interest for Delay: 6% p.a. if refund is not granted within 60 days

Key Documents Required

The exact documents depend on the refund type. Commonly required documents include:

• Tax invoices and shipping bills
• Bank Realization Certificate (BRC) or Foreign Inward Remittance Certificate (FIRC)
• LUT copy (for exports without tax payment)
• Statement 3/3A or Statement 5 (for exports or ITC refund)
• Chartered Accountant Certificate (mandatory if refund claim > ₹2 lakh)
• GSTR-1 and GSTR-3B filings as proof of transaction

Important Points for Applicants

• Always match ITC using GSTR-2B before claiming refund
• Refund claims can only be filed after relevant GSTR-1 and GSTR-3B returns are filed
• No refund of ITC is allowed on capital goods or exempt/nil-rated outputs under inverted duty
• Refunds are automatically credited to the registered bank account

How VETRI AUDIT SERVICES Can Help

At VETRI AUDIT SERVICES PRIVATE LIMITED, we specialize in offering comprehensive support for GST refund claims, including:

• Eligibility assessment
• Document compilation and validation
• Filing and submission of refund application
• Responding to queries/SCNs from GST officers
• Ensuring timely follow-up and realization of funds

Need help with your GST refund claim?

Let our expert team simplify the process for you.