What is GST Refund, How to Claim and Check Refund Status Online?

A GST refund a process where registered taxpayers claim a pay-out from tax authorities if they have paid Goods and Services Tax in excess of the actual tax liability. In order to claim the due refund, the GST registered entity has to mandatorily file a refund application.

The refund application under current GST rules differs based on the type of type of excess tax payment that was made. The most common type of GST refund is made using the form GST RFD-01. However, international organizations/Embassies seeking GST refund are required to use the form RFD-10. In the subsequent section, let’s take a closer look at key instances when a GST refund can be claimed.

There are various instances when a GST-registered entity is eligible to claim a refund on the Goods and Services Tax that has been paid. Key instances of this include the following:

• If there is excess balance in the electronic cash ledger
• GST paid on export of goods/services
• GST paid on the supply of goods/services to a Special Economic Zone (SEZ)
• Tax paid on supply of nil-rated items under GST
• Refund provided as a result of court order, decree or judgement
• GST paid by an Embassy or international organization such as the United Nations
• Excess GST paid as a result of mistake/omission at the time of filing

There are numerous GST forms that pay different roles in the GST refund process. Below are the key GST Refund forms you should know about when planning to apply for your GST refund:

Now that you’re familiar with the various forms common during the GST refund process, it’s essential to know the step-by-step procedure of how to submit a GST refund claim. The key steps of this process are as follows:

1. Individual taxpayers log on to the GST Portal, where they’ll find a ‘Services’ tab. Once a taxpayer locates this tab, they can select Refunds:

Yes, an individual claiming the GST refund must file the application within two years from the ‘relevant date’ found in the explanation of section 54 of the CGST/SGST Act. There is however no such time limit for claiming refund in the case of cash available in the electronic ledger. The “relevant date” applicable a few specific instances for GST refund are as follows:

The status of your GST refund can be easily checked online via the official GST Portal. Below is the Step by step process for checking current GST refund status online:

Step 1. Go to the GST Portal and Click on Refunds under Service menu on the website home page. Then click on “Track Application Status” link as shown below: