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Classification Of Refunds of Taxes / ITC under GST


CGST/UTGST/IGST Acts, 2017 and the SGST law give right to the taxpayers to claim refund of taxes/ITC for various reasons. The provisions of different types of refunds are described under Chapter XI of CGST which is also applicable to the UTGST by virtue of Sec. 24 of the Act ibid. Sections 54 to 58 of CGST Act, 2017 deals with refund Provisions. An application for refund may be filed by the taxpayer to the proper officer of IGST/CGST/SGST/UTGST online through GSTN common portal within two years from the relevant date in the electronic formats as prescribed under Refund Rules. However, Explanation to section 54(20)(h) specify that in any other cases, the relevant date is the date of payment of tax. To understand the various categories of Refund claims and its processes, a brief classification is given in the table:

SL No.

Categories of Refund



Refund of the excess balance
amount available in the Cash
Ledger after discharging tax
liability to the Govt. as prescribed
under Section 49(6) of CGST Act as applicable mutual mutandis with UTGST Act and SGST Act.

  1. No need to file separate refund application online. A provision has been made under Return to be filed under Sec. 39 itself (GSTR-3, 4, 7 etc.) to claim such refund.
  2. It may be claimed at the end of the tax period, with the filing of monthly/ quarterly return of previous month/ quarter.


Refund of Tax paid on goods exported out of India

  1. A process has been devised at GST portal for filing refund application of duty paid on the goods exported under Format GST RFD-01.
  2. Application shall be filed only after EGM/Export Report is filed under Customs Act, 1962


Refund of ITC accumulated against the inputs and input services attributed to supply of export of goods or services,

  1. The Input tax credit of inputs and input services used in or in relation to processing and/or supply of export goods and/or services and are not utilized by the taxpayer for payment of tax against any domestic supply, will be refunded to the taxpayer.
  2. No refund of ITC in case of export where the goods exported out of India are subjected to export duty.
  3. No refund of ITC if the supplier of goods or services claims refund of output tax paid under IGST Act.
  4. It may be claimed at the end of the tax period, with the fifing of monthly return for previous month.
  5. Format GST RFD-O1 will be utilized for filing refund at GST Common Portal.


Refund of ITC accumulated due to inverted tax structure

  1. No refund of unutilized ITC shall be allowed in cases other than the credit accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies, other than zero rated or fully exempt supplies.
  2. Same GST RFD-O1 application format be utilized for filing refund.


  1. Refund of duty paid against any deemed export like supply to SEZ developer or SEZ unit
  2. Refund of ITC on account of deemed export
  1. Such deemed export may be supplied either on payment of tax or zero-rated
  2. In case of deemed export on payment of tax, the recipient of the deemed export shall file the refund since he has born the burden of tax.
  3. Application may be filed only after the goods or services are supplied for authorized operations and such goods or services are admitted/received/ endorsed by the specified officers.
  1. In case of refund of ITC against deemed export, the supplier will file the refund  application.


Refund Application of an Embassies/Consulate, UNO agency or Multilateral Financial Institution and organization notified under UNO (Privileges and immunities)
Act, 1947 or any other person or class of persons as notified under Section 49.

  1. Refund to be claimed on the amount borne by these organization as tax burden on inward supplies of goods and/or services.
  2. Application in the format of GST RFD- 10 after filing GSTR -11.


Refund Payment due to Statutory order of the adjudicating authority/courts/tribunal etc.

Refund application shall be filed by the taxpayers once such order has achieved finality in their favor.


Refund Application by URD/ Consumer

Where burden of refundable tax has been passed on to the ultimate consumer! Un-Registered Dealer by the taxpayers, the consumer/URD may file refund application online


In case of Casual Person/ non-resident taxable person refund

Refund of amount paid in advance at the time of Registration as per Sec. 27, after adjusting the tax liability shall be claimed in the last Return required to be filed.


Refund of IGST to International
Tourist at the time of leaving

The refund of IGST paid by the International tourists on purchases of goods will be paid at the time when they leave India. However, the processes and conditions are yet to be finalized.


In case supply of goods and/or services is not made against an advance payment received by the supplier and no tax invoice is issued, the supplier shall issue a Refund Voucher against such advance payment to the registered person who had made the advance payment.

There may be one of the following ways to satisfy the requirement of the refund:

  1. The Refund Voucher may be uploaded with Returns and treating as credit note, the liability of tax may be reduced to the extent tax is paid against such advance or,
  2. A fresh refund application may be filed by the supplier to claim refund of such tax payment on advance.
    Sec. 31(3)(e) specify issuance of such refund voucher.


As per Sec. 31(e) in case supply
if goods and / or services is
not made against an advance
payment received by the supplier
and no tax invoice is issued, the
supplier shall issue a refund
voucher against such advance
payment to the registered person
who had paid the advance and
has not received the goods and
services against such payment.

Such ref und voucher shall be uploaded with Return and the payment of refund shall be handled in the manner almost as is managed in the case of payment of additional cash amount lying in Cash ledger.

It means no separate refund application shall be required to file. The officer shall ensure whether tax was paid by the supplier against such advance and approve the refund.

Related Topics ....
Classification Of Refunds of Taxes / ITC under GST
Law And Processes For Different Types Of Refunds of Taxes / ITC under GST
Process Of Refund Application Filing of Taxes / ITC under GST
Documents Required For Filing Of Refunds of Taxes / ITC under GST
Transitional Provisions Pertaining To Refund of Taxes / ITC under GST
Verification Process of Refund of Taxes / ITC AT GST Common Portal

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