GST is all about a smooth flow of funds and compliances till the end. To facilitate such a smooth flow, it is imperative for the Government to provide for a hassle-free refund process. The balance in Electronic Cash Ledger can be claimed as a refund by submitting a refund application form RFD – 01. This can be done online on the GST Portal/ GSTN.

Under GST, all GST refund claims must be filed within 2 years from the relevant date. If the claim is in order, the refund has to be sanctioned within a period of 60 days from the date of receipt of the claim. Interest on the withheld refund is paid at the rate of 6%. Interest on the delayed refund (beyond 60 days, arising from order of authority/ court) is paid at 9% per annum.

A GST refund claim can arise on account of:
1. Export of goods or services.
2. Supplies to SEZs units and developers.
3. Deemed exports.
4. Refund of taxes on purchase made by UN or embassies etc.
5. Refund arising on account of judgment, decree, order or direction of the Appellate Authority, Appellate Tribunal or any court.
6. Refund of accumulated Input Tax Credit on account of inverted duty structure other than Nil rated or fully exempt supplies.
7. Finalisation of provisional assessment.
8. Refund of pre-deposit.
9. Excess payment due to mistake.
10. Refunds to International tourists of GST paid on goods in India and carried abroad at the time of their departure from India.
11. Refund on account of issuance of refund vouchers for taxes paid on advances against which, goods or services have not been supplied.
12. Refund of CGST & SGST paid by treating the supply as intra-State supply which is subsequently held as inter-State supply and vice versa.