What is a GST Refund?
A GST refund is when a taxpayer gets money back from the government because they’ve paid more in Goods and Services Tax (GST) than they owe.
This usually happens when:
- You’ve exported goods/services, which are zero-rated under GST.
- You’ve paid excess tax by mistake.
- Input Tax Credit (ITC) exceeds your GST liability.
- Inverted duty structure—when the tax rate on inputs is higher than the tax rate on outputs.
Common Scenarios for GST Refunds
▶ Exports (with or without payment of tax)
⇒ You can export under a bond/LUT (without paying GST) and claim a refund on unutilized ITC.
⇒ Or pay GST on exports and claim it as a refund.
▶ Inverted Tax Structure
⇒ Inputs are taxed more than outputs.
⇒ You can claim the accumulated ITC as a refund.
▶ Excess Payment of Tax
⇒ If you’ve paid more GST by mistake or due to clerical error.
▶ Refund to International Tourists
⇒ Some countries offer GST refunds on goods bought by tourists for export.
Documents Typically Required
- GST RFD-01 form (online filing)
- Bank account details
- Invoices (export, purchase, etc.)
- Shipping bills (for exports)
- LUT/Bond copy (for export without tax)
- Chartered Accountant’s certificate (for large claims)
Timeline
▶ Refunds are usually processed within:
⇒ 60 days (in most jurisdictions) from the date of filing.
⇒ Interest may be paid by the government if delayed beyond this.
How to Apply
Usually through the official GST portal of your country:
⇒ Fill and submit RFD-01 or other relevant form.
⇒ Upload supporting documents.
⇒ Track the status online.