GST Refund: How to Claim Refund in GST

Did you know that more than ₹212,381.72 worth of GST refunds were filed in India in the financial year 2024-25, up to 31st January 2025? Most of these businesses know how to offset Input Tax Credit (ITC). However, only a few are familiar with the provision of refunds (with some conditions attached). In this blog, we will walk through the GST refund rules, eligibility, and the process for claiming the return. 

Who Can Claim Refund in GST? 

Excess Payment Due to Error:

If taxpayers have paid more GST than the required amount due to an accounting error, then they can claim a refund for the excess amount. Apart from accounting errors, it could also happen due to the following reasons: 

• Data entry error
• Clerical errors
• Miscalculation of tax
• GST calculation under the wrong head

Accrued Input Tax Credit (ITC):

Taxpayers, as well as exporters dealing in zero-rated supplies, always accumulate ITC. When the ITC exceeds output tax liability (in the case of exports), you can claim a refund. 

Engaged in Exports:

Those taxpayers involved in exporting goods or services are eligible to claim a refund from IGST paid. 

UN Agencies or Foreign Embassies:

If the purchases are made by the offices of United Nations agencies or foreign embassies situated in India, they are entitled to claim a GST refund.  

Inverted Tax Structure:

When the GST paid on the raw materials is more compared to the GST collected on the outputs (finished goods), this tax scenario is called an inverted tax structure. In such cases, businesses are eligible to claim GST refunds. Following are the businesses where this scenario occurs: 

• Textiles
• Solar panel
• Railway locomotives
• Seaweed
• Electrical transformer
• Dehydrated culture

Tourists:

The government does not want tourists to be burdened with GST, so there is a provision for GST refund for them. They have to follow proper procedures before leaving the country to get a refund. This provision encourages tourism in the country, opening doors for businesses to flourish. 

Read More: Check GST Registration Status with ARN Number

GST Refund Claimable Cases at a Glance

• Exports or deemed exports. 
• Supplied products or services to SEZ units and developers. 
• Purchased by UN agencies or foreign embassies.
• Accumulated ITC due to inverted tax structure.
• On the order/judgement of any Court, Appellate Authority, Appellate Tribunal
• Finalisation of provisional assessments.
• Refund of pre-deposits.
• Excess payment of tax due to errors or mistakes.
• Purchases made by international tourists.
• Refund of CGST and SGST paid on supplies. 
• Tax refund for advances on unsupplied goods or services via vouchers.
• Refund for CGST & SGST on supplies misclassified as intrastate or interstate.

How to Claim GST Refund?

Following is the explanation of the step-by-step process to claim a refund under GST: 

Step 1: Go to GST Portal and log in with your valid credentials 

Step 2: Go to ‘Services’ > ‘Refunds’ > ‘Application of Refunds’

Step 3: On the next screen, select the reason for applying for a refund. Select the appropriate reason and click on ‘Create Refund Application.’ 

Step 4: Select the relevant month and year for which the refund is to be applied. You can also select if you want to file a nil return or not. 

Step 5: Provide all the necessary information (varies on a case to case). In some cases, approval by a chartered accountant is required. 

Step 6: Provide the bank account details and supporting documents if required in your case. 

Note: You can upload up to 10 supporting documents, up to the size of 5MB. 

Step 7: Preview the application, hit the ‘Save’ button if all details are correct. Checkmark the boxes of self declaration, and submit the form RFD-01 using either DSC or EVC. 

Due Date for Claiming Refund Under GST

Following are the due dates that you should be aware of for claiming a refund under GST:

GST Refund Reason	Relevant Due Date
Excess payment of GST	Date of payment
Exports or deemed as exports	Date of loading/dispatch/passing the frontier
Accrued ITC as outward supplies are either exempted or nil-rated	Last date of relevant financial year in which ITC is credited
Finalisation of provisional assessment	Date on which tax is exempted

Conclusion 

This was all about the GST refund that you should be aware of as a business owner or an accountant. We hope after reading this you would be no more confused about GST refund eligibility. If you still have doubts, you may reach out to our customer service executive, they would be happy to resolve your queries. 

Just in case you are looking for accounting, billing and GST software; we highly recommend you to try Munim. It has everything you need to manage your business, sign for 14 days risk-free trial. 

Frequently Asked Questions

1. How to claim a GST refund? 

Following is the step-by-step process to claim your GST refund: 

Step 1: Go to the GST Portal and log in with your valid credentials 

Step 2: File the form RFD-01 with an authorised Chartered Accountant

Step 3: Once RFD-01 is filed, RFD–02 will be automatically generated and sent to you via email. This is just for future reference. In case there is any mistake, file the RFD-03 form. 

2. Who can claim a refund in GST? 

Wondering if you’re eligible for a GST refund? Here’s a quick breakdown of who can claim it:

• Business/taxpayers with excess Input Tax Credit 
• Business/taxpayers with GST payments
• Tourist
• Eligible embassies 
• Deemed exporters 

3. What is a GST refund?

GST refund is the provision made under the CGST Act, 2017, to receive the excess amount paid by the taxpayer, only in cases where the taxpayer has paid more than the amount they owe. 

4. How to claim a GST refund in an India airport​? 

Yes, GST is refundable, but it is available with the terms and conditions attached.