February 23, 2023

Understanding GST Refund in case of Input Services

Goods and Services Tax (GST) has transformed the taxation system in India. It has replaced all the central and state-level indirect taxes with a single unified tax. Under GST, input tax credit (ITC) is a crucial aspect as it helps businesses reduce the overall tax burden. In this article, we will discuss GST refund in case of input services.

What is Input Service?

Input service means any service used by a supplier for business purposes. It can be in the form of hiring a chartered accountant for auditing, consulting services, transportation services, or any other services. In simple terms, input service is the service that a business owner avails of to carry out their business operations.

What is GST Refund?

GST refund is the process of claiming the excess tax paid by the taxpayer. It is possible to claim a refund on the tax paid on inputs or input services used for business purposes. GST refund can be claimed in the case of an inverted duty structure, exports, deemed exports, or refund of accumulated input tax credit.

Conditions for claiming GST Refund on Input Services

The following conditions must be satisfied to claim GST refund on input services:

1. The applicant must have paid GST on the input services availed of.

2. The ITC on input services must not have been utilized for paying tax on the output supply.

3. The applicant must have filed GST returns regularly.

4. The refund claim must be filed within two years from the relevant date.

5. The supplier of the input service must have filed GST returns and paid GST.

How to Claim GST Refund on Input Services?

The process for claiming GST refund on input services is as follows:

1. File GST returns for the relevant period.

2. Compute the amount of input tax credit.

3. Submit an application for refund of input tax credit online through GST portal.

4. Attach supporting documents, such as invoices, debit/credit notes, and bank statement.

5. The refund claim will be processed by the concerned GST officer.

6. The refund will be credited to the applicant's bank account if the claim is approved.


GST refund in case of input services is an essential aspect of GST compliance. It helps businesses reduce their overall tax burden and claim a refund on the excess tax paid on input services. To claim a refund, the applicant must satisfy certain conditions and follow the specified procedure. It is advisable to consult a GST expert for proper guidance on GST refund and compliance.


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