Question 1

In what situations can I claim a GST refund?

Accepted Answer

GST refunds are available in several cases: excess ITC accumulated due to zero-rated exports or inverted duty structure; IGST paid on export of goods or services; tax paid by mistake (excess payment); refund on cancellation; and refunds to embassies, international organisations, or UN bodies. The most common refund claims for businesses are on exports and inverted duty.

Question 2

What is an inverted duty refund?

Accepted Answer

An inverted duty refund arises when the GST rate on your input purchases is higher than the GST rate on your output supplies. This results in accumulated ITC that cannot be utilised against output tax. The excess ITC can be claimed as a cash refund under Section 54(3) of the CGST Act.

Question 3

How long does it take to receive a GST refund?

Accepted Answer

The GST officer is required to process a complete and deficiency-free refund application within 60 days. If the refund is not processed within 60 days, you are entitled to interest at 6% per annum on the delayed amount. In practice, refunds on exports with proper documentation are often processed within 30–45 days.

Question 4

What is a deficiency memo in GST refund?

Accepted Answer

If the GST officer finds the refund application incomplete or finds missing documents, they issue a deficiency memo in Form RFD-03. You must then re-file the complete application with the required documents within the prescribed time. BSP Associate monitors your application status and responds to deficiency memos promptly.

Question 5

Is a CA certificate required for all GST refund claims?

Accepted Answer

A CA certificate (in the format prescribed under Form RFD-01A) is required when the refund claim exceeds ₹2 lakh and relates to accumulated ITC or payment of tax under wrong head. For IGST refund on exports, the refund is processed through shipping bill data matching on the ICEGATE portal and does not require a separate CA certificate.

Question 6

What is the time limit for filing a GST refund application?

Accepted Answer

A GST refund application must be filed within 2 years from the relevant date. For exports, the relevant date is the date of export. For excess ITC accumulation, it is the end of the financial year in which the ITC was accumulated. Claims filed after 2 years are time-barred.

GST Refund

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