February 20, 2023

GST Refunds: Types, Applications and eligibility

Understanding the Goods and Services Tax (GST) refund process is crucial for small and medium-sized business owners in India. GST is a tax that is levied on the supply of goods and services in India, and it has been implemented with the aim of simplifying the tax structure in the country. The implementation of GST has significantly impacted business owners, and it is important to know everything about the GST refund process to ensure maximum benefits. This article will guide you through everything you need to know about GST refunds.

What is GST Refund?

GST Refund is the process of getting back the GST paid on the tax invoice, which was used for making zero-rated supplies. Zero-rated supplies are taxable supplies that are charged at 0% GST. GST is applicable on all other taxable supplies, and the input tax credit is available to the supplier. The GST refund process is initiated when there is an excess of input tax credit available with the supplier, and the same has not been utilized for payment of output tax liability.

Who is Eligible for GST Refund?

Any registered person under GST who has paid GST on inputs and has not utilized the said input for outward supply, is eligible for a refund of the input tax paid. The following are the eligibility criteria for claiming GST refund:

1. Must have a GST registration certificate

2. Paid GST on inputs supplied

3. Not have utilized the input to make any outward supply

4. Must file the returns regularly

5. Not have any outstanding tax liability

What are the Types of GST Refunds?

There are four types of GST refunds that a supplier can claim:

1. Refund of IGST on exports

2. unutilized input tax credit

3. paid on the purchase of goods for SEZ units

4. On the purchase of goods by an embassy or an UN organization

How to Apply for GST Refund?

The following is the process for applying for GST refund:

1. File the GST RFD-01A form electronically on the GST portal with all the required details

2. The application will be processed by the GST officer, and if it is found to be in order, the refund amount will be credited to the supplier's bank account

3. If the application is found to be incomplete or incorrect, it will be rejected by the GST officer

What are the Documents Required for GST Refund?

The following are the documents required for GST refund:

1. GST RFD-01A form

2. The tax invoice

3. Export invoice (in case of export of goods)

4. Shipping bill (in case of export of goods)

5. Bill of entry (in case of import of goods)

6. Purchase order (in case of goods purchased)

7. Debit note issued by the supplier (in case of goods returned)

8. Bank statement showing the payment of GST


Small and medium-sized business owners in India should be well-versed with the GST refund process to ensure that they get maximum benefits. The process of applying for a refund is simple, and the eligibility criteria are straightforward. Keeping all the documents ready and ensuring that the returns are filed on time can streamline the entire process. By following the guidelines provided in this article, business owners can make the most of the GST refund process.


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