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How to Claim GST Refund: A Step-by-Step Guide


Claim GST Refund

Finding your way through the complexities of taxes can be difficult, whether you are a consumer or a business owner. The Goods and Services Tax (GST) refund is one tax-related factor that could have a big impact on your financial situation. 

Reversing taxes that the taxpayer has already paid for various reasons is the procedure of a GST refund. If you are qualified, you can submit a GST refund return form to get a refund of the tax you paid. It is intended to function like a value-added tax, where businesses receive GST from customers and remit it to the government. However, a refund may be requested when the GST paid outweighs the GST collected. This refund method ensures businesses are not overpaying for GST and promotes adherence to tax laws. Additionally, it gives businesses a way to get back any extra GST they have paid, fostering justice and transparency in the taxation process.

In this comprehensive guide, we will walk you through the process of claiming a GST refund, ensuring you can reclaim the taxes you’re entitled to without hassle.

Importance of claiming GST refund

Claiming a GST refund is crucial for both businesses and consumers. For businesses, it ensures they receive reimbursement for the excess GST paid, directly affecting their profitability. For consumers, particularly in scenarios like export purchases, a GST refund can result in more competitive prices and stimulate cross-border trade.

It indicates no suppliers’ exports will be subject to the GST tax. Imports are, nevertheless, taxed under the recently introduced tax system. Input taxes paid on imports may be refunded to exporters. However, the procedure is a little time-consuming. Even though the process is complicated and may take some time, exporters may benefit from claiming a tax refund under the GST because it lowers their overall tax obligation and encourages worldwide trade.

Eligibility for GST Refund

A taxpayer may be eligible for a refund in several circumstances, most of which are listed by CBIC or the government. To ensure they can submit claims for any refunds they are eligible for, taxpayers must maintain knowledge of the eligibility requirements listed below.

Criteria for Eligibility

A claim for a GST refund is not universal. Typically, to be eligible, organizations or people must fulfil certain requirements. The amount of GST paid, the type of products or services, and the reason for the transaction are a few examples of these criteria.

Export of Goods or Services: A supply is referred to as a “zero-rated supply” when products are exported, or services are rendered to clients outside the nation. This indicates that no GST is applicable and that any GST paid throughout the production or provision process can be refunded.

Inverted Duty Structure: Businesses can request a refund on any extra GST paid when the GST paid on inputs (raw materials, components, etc.) exceeds the GST received on the output (finished product or service).

Refund of Accumulated Input Tax Credit (ITC): If the GST paid on inputs and input services is higher than the GST collected on the output supplies, resulting in an accumulation of ITC, businesses can claim a refund for the excess credit amount.

Export of Services: Similar to the export of products, services are regarded as zero-rated when exported. Businesses offering certain services may request a refund of the GST they paid for those services.

Refund for Exempt Supplies: The GST paid on inputs connected to exemption supplies is not eligible for input tax credit if a business makes taxable and exempt supplies. In certain circumstances, businesses can request a refund for the GST they paid on the inputs used to make exempt supplies.

Refund due to Finalization of Provisional Assessment: When a GST provisional assessment is made owing to insufficient or confusing information, businesses can later provide accurate information and claim a refund for any extra tax paid during the provisional assessment.

Refund for Refundable Tax Credits: Some companies might be eligible for particular refundable tax credits, such as those associated with the R&D tax incentive. These credits are redeemable for refunds.

GST on Advances: The GST paid on the advance can be refunded if a provider receives payments in advance for the supply of goods or services, but the transaction is not completed.

Inaccurate or Excessive Payment: If a business has made an inaccurate or excessive payment of GST due to errors or misconceptions, they can claim a refund for the overpayment.

Special Economic Zones (SEZ) Supplies: Supplies made to SEZs are considered zero-rated. Businesses supplying goods or services to SEZs can claim a refund on the GST paid for these supplies.

Refunds to International Tourists: International visitors can request a refund of the GST they paid on any goods they brought from India when leaving.

Refund due to Change in Supply Classification: When a supply is first considered an intra-state supply but later determined to be an inter-state supply (or vice versa), the paid CGST and SGST will be refunded.

While many transactions are eligible for a GST refund, there are instances where refunds are not applicable. Domestic sales, exempt supplies, and transactions not involving cross-border movement generally fall into ineligible goods and services.

Documents Required for GST Refund

Taxpayers who wish to make a claim must file elaborate documents besides the refund claim. It can vary based on the nature of the transaction for claiming a GST refund.

List of required documents

The required documentation is standard. A listing of related invoices associated with the claim is, therefore the main document that must be submitted for each claim.

The required bank realization certificates proving receipt of payment in foreign currency should also be supplied if the reimbursement is issued due to the export of services, except for the statement of invoices.

The authorized officer must make an endorsement validating the receipt of such goods or services in the SEZ and submit it along with the rest of the documentation in the case the provider makes a claim to the Special Economic Zones (SEZ) unit. Additionally, the SEZ unit must submit a certification confirming that the ITC for the tax paid by the supplier has not been used.

Steps for Claiming GST Refund

Step 1: Preparing the Claim

Ensure you have all the required documentation before submitting a GST refund claim. Check the eligibility requirements for the transaction you are making, and ensure your claim complies with the rules.  

Step 2: Filing the Claim

Most tax authorities offer an online filing platform for GST refund applications. Complete the relevant forms completely, and enclose any essential documents. The user must also submit monthly returns to receive the refund amount in the credit balance. An acknowledgement for a refund application must be given within 14 days after the application’s submission to be considered valid. Check the details twice to be sure there are no mistakes that could delay or affect your refund.

Step 3: Tracking the Claim Status

Within 14 days of receiving the claim, the relevant Officer must inform the applicant of the application’s status. This enables you to be informed about the status of your claim and to address any problems that may occur quickly. If the application contains any errors, the GST refund request will be returned to the applicant along with a list of the errors, and the applicant may then resubmit the application.

Step 4: Receiving the Refund

If there are no mistakes or defects, the GST refund requests must be approved within 60 days of the claim’s receipt date, excluding any unanticipated events. Additionally, after 14 days, the GST refund claim must be processed, and officers cannot issue deficiency memos.

Tips for Avoiding GST Refund Rejection

Common Reasons for Rejection

GST refund requests may be rejected for many reasons, including inadequate supporting evidence, claim form mistakes, invoice discrepancies, and failure to meet qualifying requirements.

Tips for Avoiding Rejection

Ensure all your documents are accurate, comprehensive, and compliant with the rules to improve your chances of receiving a GST refund. Check the requirements for your transaction type again, and carefully adhere to the filing instructions.


Claiming a GST refund might seem difficult, but with the appropriate information and attention to the rules, it can be a rather simple task.  To ensure a quick and easy process while recovering extra taxes paid, businesses and individuals must understand how to claim a GST refund. To foster fair taxation practises, a GST refund acts as a mechanism to correct instances of overpayment and incorrect classification of supplies. Claimants can improve their chances of a successful refund application by adhering to the eligibility requirements, compiling the required documents, and following the step-by-step procedure. The probability of a trouble-free refund process will be further increased by caution in avoiding typical rejection causes and taking proactive measures.

Understanding the GST refund procedure enables you to take full advantage of the tax laws in place, whether you’re a business owner aiming to maximize your finances or a consumer seeking reasonable costs. Remember that accuracy and attention to detail are crucial to claim a GST refund. Here is where Kanakkupillai comes in aid. Kanakkupillai is a reputable service provider that focuses on helping organizations and private citizens with their applications for GST refunds. We can ensure that receiving your refund is quick and easy due to our experience and understanding of the tax laws. By entrusting Kanakkupillai with processing your GST refund application, you may confidently concentrate on other essential aspects of your business or personal finances.

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