Who Can Claim GST Refunds? A Clear Guide for Businesses & Taxpayers

Goods and Services Tax (GST) simplified the indirect tax system in India—but for many businesses and taxpayers, getting refunds under GST can still seem like a puzzle. If you’ve paid more GST than required or exported goods and services without claiming benefits, you might be leaving money on the table.

So, the real question is: who can claim GST refunds, and under what circumstances?

In this blog by Genuinefilings.com, we’ll break it down clearly—no jargon, no confusion—just straight answers on who is eligible, when to file, and how to get your rightful GST refund.

What Is a GST Refund?

A GST refund is the return of excess tax paid by a registered taxpayer under various scenarios such as:

• Export of goods or services without tax payment (under LUT)
• Accumulated Input Tax Credit (ITC) due to inverted duty structure
• Excess GST paid due to mistake or miscalculation
• Refunds to UN bodies, embassies, or persons notified under the GST law
• Finalization of provisional assessment
• Deemed exports

When you’re eligible, the government returns the surplus tax directly to your registered bank account—but only if the refund is claimed properly and within the deadline.

Who Can Claim GST Refunds?

Let’s break it down based on taxpayer categories and situations:

1. Exporters (Goods or Services)

If you’re an exporter supplying zero-rated goods or services, you’re entitled to a full refund of:

• IGST paid on exports (if done with tax payment), OR
• Unutilized Input Tax Credit (if done under LUT without paying IGST)

Important: You must file the refund using Form RFD-01 within 2 years from the relevant date.

2. Businesses Facing Inverted Duty Structure

If you buy inputs at a higher GST rate but sell output at a lower GST rate, it results in accumulated ITC. You can claim a refund of the unused ITC.

Example: You buy raw materials at 18% but sell the finished product at 5%.

 Note: This excludes certain goods/services notified by the government, so it’s important to check eligibility with experts like Genuinefilings.com.

3. Taxpayers Who Paid GST by Mistake or Excess

Mistakes happen—wrong tax rates, wrong heads (CGST vs IGST), or double payments. If you paid more tax than needed, you can file a GST refund claim to recover the excess.

• Must be filed within 2 years
• Needs proof of payment and justification

4. Dealers of Deemed Exports

If you supply goods classified as deemed exports (e.g., to EOU/EHTP/STP units), you or the recipient can claim a GST refund depending on who bore the tax cost.

✔ Requires declaration and undertaking by both supplier and recipient.

5. Casual Taxable Persons or Non-Resident Taxable Persons

If you’re registered for a short-term period (for example, a foreign exhibitor or trade fair participant), you may have paid advance GST. After your business concludes, any unutilized balance can be refunded.

Condition: Refund claim must be filed after filing the Final Return (GSTR-10).

6. UN Bodies, Embassies & Special Agencies

Under GST rules, foreign diplomatic missions, embassies, and UN agencies are eligible for GST refunds on purchases made in India.

• Claims must be made quarterly
• Subject to prescribed limits and documentation

7. Refund on Account of Final Assessment

If your GST liability was provisionally assessed and later finalized, and it turns out you paid more—you’re eligible for a refund of the excess amount.

You’ll need:

• Final assessment order
• Supporting documents to validate the overpayment

8. Recipients of Supplies from SEZ Units/Developers

Businesses receiving supplies from SEZs can claim input tax refund on those supplies if certain conditions are met, such as valid LUT, authorized operations, and proof of receipt.

9. Others Eligible for Refund

• Unregistered persons: In rare cases (like cancellation of contracts), even unregistered individuals who have paid GST can apply for a refund.
• Supplies considered as exempt retrospectively: If a supply was initially taxed but later notified as non-taxable, you can seek a refund of the paid tax.

Documents Needed for GST Refund Claim

Although the document list varies, generally you’ll need:

• GST returns (GSTR-1, GSTR-3B)
• Form RFD-01 (Refund Application)
• Invoices (export, domestic)
• Bank account details (cancelled cheque)
• Proof of tax payment
• LUT/Bond if applicable
• Declaration of no unjust enrichment (for certain cases)

What Is the Deadline to Claim GST Refunds?

The standard time limit to claim a GST refund is:

2 years from the “relevant date”

Relevant date varies by refund type:

• For exports: Date of shipping bill or invoice
• For excess tax: Date of payment
• For final assessments: Date of final order

Missing the deadline can mean losing your refund rights, so it’s best to act early.

Common GST Refund Mistakes to Avoid

• Filing the wrong form or selecting wrong refund category
• Not matching invoices in GSTR-1 vs GSTR-3B
• Submitting incomplete or inaccurate documents
• Failing to pre-validate bank account
• Missing the 2-year filing deadline
• Not keeping proof of export or shipping

At Genuinefilings.com, we ensure all technicalities are handled so you don’t lose out due to such avoidable errors.

Why Choose Genuinefilings.com for GST Refund Filing?

With complex documentation and timelines involved, many businesses struggle with refunds—even when eligible. That’s where Genuinefilings.com comes in:

• Expert refund eligibility check
• End-to-end refund filing and documentation
• Tracking application status until refund is credited
• Timely reminders and updates
• Error-free, compliance-driven approach

Frequently Asked Questions (FAQs)

Q1: Is GST refund taxable income?

No, GST refunds are not taxable as income—they’re a return of your own money.

Q2: What if my refund claim gets rejected?

You can resubmit with corrections or appeal under GST law. Our team can help you address rejection reasons.

Q3: Ho long does it take to receive a GST refund?

Typically, 15 to 60 days post-application, depending on documentation and verification.

Q4: Can I claim refund of late fees or penalties?

No, late fees or penalties are not refundable under GST law.

Q5: Can I file a GST refund online myself?

Yes, but professional support ensures accuracy, speed, and approval. One mistake can cause rejection or delay.

Final Thoughts

Understanding who can claim GST refunds is the first step toward getting your money back from the tax authorities. Whether you’re an exporter, a trader, a service provider, or a special category taxpayer—if you’ve paid excess tax or accumulated ITC, you might be entitled to a refund.

At Genuinefilings.com, we take the stress out of refund filing with smart guidance, document support, and timely application submission. We help you reclaim what’s rightfully yours—without paperwork nightmares or missed deadlines.

Ready to Claim Your GST Refund the Right Way?

Contact the experts at Genuinefilings.com today. Whether it’s your first GST refund or you’re fixing past errors, we’re here to make sure your money comes back to you—fast and fair.