Unlock Your Blocked Working Capital with GST Refunds
From exports to inverted duty structures, getting money back from the tax department is notoriously difficult. Our Chartered Accountants file flawless RFD-01 applications and follow up aggressively to get your refund credited.
URGENT: The 2-Year Deadline
Under Section 54 of the CGST Act, you must file your GST refund application within two years from the “relevant date” (e.g., date of export, or date of payment of excess tax). Once this statutory time limit expires, your money is permanently forfeited to the government.
When Can You Claim a GST Refund?
You cannot simply claim a refund because you have a balance in your ITC ledger. Refunds are strictly allowed under specific scenarios.
Export of Goods/Services
If you export under a Letter of Undertaking (LUT), you can claim a refund of your accumulated Input Tax Credit. If you paid IGST, you can claim a refund of the IGST paid.
Inverted Duty Structure
Occurs when the GST rate on your raw materials (inputs) is higher than the GST rate on your finished goods (sales). This leads to ITC buildup, which can be refunded.
Supplies to SEZ Units
Supplying goods or services to Special Economic Zone (SEZ) developers or units is treated as a “Zero-Rated Supply.” You can claim a refund for the taxes paid or ITC accumulated.
Excess Cash Ledger Balance
If you mistakenly deposited extra money into your GST Electronic Cash Ledger via a challan, you can file a refund claim to withdraw it back into your bank account.
Tax Paid in Error
If you accidentally paid CGST & SGST on an inter-state supply (instead of IGST), or vice versa, you can claim a refund of the wrongly paid tax once the correct tax is paid.
Deemed Exports
Supplies designated as Deemed Exports (like supplying to an Export Oriented Unit – EOU) are eligible for a refund, which can be claimed by either the supplier or the recipient.
Our Bulletproof Refund Filing Process
Filing Form RFD-01 is a document-heavy process. A single mismatch between your shipping bills and GSTR-1 leads to immediate rejection.
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GSTR-2B & ICEGATE Match: For export refunds, we ensure the details in your Shipping Bills (ICEGATE), GSTR-1, and GSTR-3B match to the exact decimal before applying.
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Formula Calculation: Inverted duty and LUT refunds rely on complex formulas dictated by Rule 89. We calculate the maximum eligible refund down to the last rupee.
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CA Certification: For refund claims exceeding ₹2 Lakhs, a CA Certificate is mandatory to prove the incidence of tax was not passed to the consumer (Unjust Enrichment). Our Chartered Accountants provide this certification.
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Reply to Deficiencies (RFD-03): If the GST officer issues a deficiency memo requesting more proof, we compile the necessary documents and file a robust legal reply.
Why Do GST Refunds Get Rejected?
Obtaining a refund from the tax authorities is inherently difficult because the burden of proof rests entirely on the taxpayer. The GST portal checks data across multiple systems (GSTN, Customs, and ICEGATE). Most business owners struggle to claim refunds due to the following reasons:
- GSTR-1 and Shipping Bill Mismatch: If the port code, invoice number, or shipping bill date declared in GSTR-1 does not exactly match the customs data on ICEGATE, the IGST refund is blocked (Error Code SB005).
- Ineligible ITC Claimed: Trying to claim a refund on capital goods or input services under the Inverted Duty Structure (which is strictly restricted to inputs/raw materials only).
- Missing BRC/FIRC: For export of services, failing to submit the Bank Realization Certificate (BRC) or Foreign Inward Remittance Certificate (FIRC) proving the money was received in convertible foreign exchange.
At EasyBiz360, our tax experts perform a rigorous pre-audit of your documents, ensuring your application is flawless and fast-tracked for approval.
Frequently Asked Questions
Get clarity on timelines and rules regarding GST refunds.
How long does it take for a GST refund to be credited?
By law, once an acknowledgment (RFD-02) is issued, the officer must sanction the refund within 60 days. For exports, a provisional refund of 90% is typically granted within 7 days. If delayed beyond 60 days, you are entitled to interest at 6% p.a.
Can I claim a refund for ITC on Capital Goods?
No. Under the Inverted Duty Structure, refunds are strictly allowed only on ‘Inputs’ (raw materials). You cannot claim a refund for ITC accumulated due to ‘Input Services’ or ‘Capital Goods’ (machinery).
Do I need to submit physical documents to the GST office?
The filing of Form RFD-01 is completely online. However, many jurisdictional officers still request a physical docket containing copies of invoices, GSTR returns, and CA certificates for final verification. Our team manages this liaison.
What is ‘Unjust Enrichment’ in GST refunds?
Unjust Enrichment is a legal concept ensuring you don’t get double benefits. You must prove that you did not pass the burden of the tax onto your customer (i.e., you didn’t recover the tax from them while also claiming a refund from the government).
Claim Your Money Back Today
Don’t let your working capital sit idle in the government’s ledger. Let our experts file your refund claim before the 2-year deadline expires.