Here is a complete guide on GST Refunds under the Goods and Services Tax (GST) Act, applicable for FY 2025–26:
💸 What is a GST Refund?
A GST refund is a claim made by a registered taxpayer to receive the return of excess GST paid or accumulated under certain circumstances.
✅ Situations Where GST Refund Can Be Claimed
| Scenario | Explanation |
| Export of goods/services (with/without payment of tax) | Refund of IGST paid or unutilized ITC under LUT/Bond |
| Inverted duty structure | When tax rate on inputs is higher than on outputs (except for certain goods) |
| Excess cash in Electronic Cash Ledger | Cash deposited but not utilized |
| Refund on account of provisional assessment | Final tax liability is less than provisionally assessed |
| Excess payment of tax due to error | Mistakenly paid tax more than required |
| TDS/TCS refund to deductee | When TDS/TCS deducted is more than actual liability |
| Refund to UN bodies/embassies | Registered UN/Embassy entities eligible for refund on inward supplies |
| Finalization of assessment/appeal | Refund ordered by Appellate Authority or court |
📝 How to Apply for GST Refund
- Login to GST portal
- Navigate to Services > Refunds > Application for Refund
- Select the appropriate reason for refund
- Fill Form GST RFD-01
- Upload required documents
- Submit the application using DSC or EVC
- ARN (Application Reference Number) is generated
📑 Documents Required
| Type of Refund | Supporting Documents |
| Export of goods/services | Shipping bill, Export invoices, FIRC/BRC, LUT/Bond, GSTR-1 and 3B |
| Inverted duty structure | Invoices, Purchase register, GSTR-2B, GSTR-3B, computation sheet |
| Excess payment of tax | Challan, tax computation proof |
| TDS/TCS excess | TDS/TCS certificate, payment proof |
| Others | Declaration or CA certificate (if refund exceeds ₹2 lakh) |
📆 Timelines for Refund
| Stage | Timeline |
| Filing of application (RFD-01) | Within 2 years from relevant date |
| Refund sanction (with complete docs) | Within 60 days from application date |
| Provisional refund (exports) | Within 7 days (90% of amount) |
🔒 Important Conditions
- Return filing must be up to date (no pending GSTR-1/3B)
- No refund if amount is less than ₹1,000
- Electronic Credit Ledger (ITC) must have sufficient balance
- Aadhaar authentication is mandatory for claiming refund
📘 Forms Used
| Form | Purpose |
| GST RFD-01 | Refund application form |
| GST RFD-02 | Acknowledgement |
| GST RFD-03 | Deficiency memo (if any) |
| GST RFD-04 | Provisional refund order (90%) |
| GST RFD-05 | Payment order |
| GST RFD-06 | Final refund order |
| GST RFD-07/08 | Withholding / rejection order (if applicable) |