GST · Notices, demands and appeals
When can I claim a GST refund, and how long does it take?
Short answer
Refunds are allowed for exports and supplies to SEZs, for accumulated credit due to an inverted duty structure, for excess cash in the electronic cash ledger, and in a few other cases. File RFD-01 within two years of the relevant date. Ninety per cent of a refund on zero-rated supplies, and since October 2025 on inverted duty claims, can be sanctioned provisionally within 7 days. The final order is due within 60 days, after which interest is payable.
Main types of refund
| Type | How it is claimed |
|---|---|
| Export of goods with IGST paid | The shipping bill is the refund claim; IGST is refunded automatically through customs, if GSTR-1 and GSTR-3B match |
| Export of goods or services without IGST, under a Letter of Undertaking (LUT) | RFD-01, for unutilised input tax credit, by formula (rule 89(4)) |
| Export of services with IGST paid, and supplies to SEZ units or developers | RFD-01 |
| Inverted duty structure (tax on inputs higher than on output) | RFD-01, by formula (rule 89(5)); credit on input services and capital goods is excluded |
| Excess balance in the electronic cash ledger | RFD-01 |
| Tax paid under the wrong head (IGST instead of CGST and SGST, or the reverse) | RFD-01 |
| Deemed exports, and amounts due after an appeal or assessment | RFD-01 |
Time limit
Within two years of the relevant date, which depends on the type: for example, the date of export, or the due date of the return for the period of an inverted duty claim.
Process and timelines
- File RFD-01 on the portal with the statements and documents.
- Acknowledgement in RFD-02 within 15 days, or a deficiency memo in RFD-03, after which you file again.
- Provisional refund of 90% within 7 days for zero-rated supplies and, since 1 October 2025, for inverted duty claims, where the system's risk evaluation allows.
- Final order in RFD-06 within 60 days. After that, interest at 6% is payable on the delayed refund (9% where the refund follows an appeal order).
Unjust enrichment
For refunds other than those on exports and certain other cases, you must show that you have not passed on the tax to the buyer. Above ₹2 lakh, this is supported by a Chartered Accountant's certificate.
Common reasons for delay
- GSTR-1, GSTR-3B and shipping bills that do not match.
- Export proceeds not realised, for services.
- Turnover figures in the formula that do not match the returns.
- Missing statements or invoices in the specified format.
Legal basis
- Sections 54 and 56, Central Goods and Services Tax Act, 2017
- Section 16, Integrated Goods and Services Tax Act, 2017 (zero-rated supplies)
- Rules 89 to 97A, CGST Rules, 2017
Official sources
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