Final Refund - Goods and Service Tax Rules - 17052017 | Learn About GST : Updates and Rules PDF Download

 Page 1


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Chapter- 
REFUND  
1. Application for refund of tax, interest, penalty, fees or any other amount  
(1) Any person, except the persons covered by notification issued under section 55, claiming refund 
of any tax, interest, penalty, fees or any other amount paid by him, may file an application electronically 
in FORM GST RFD-01   through the Common Portal, either directly or through a Facilitation Centre 
notified by the Commissioner: 
 Provided that any claim for refund relating to balance in the electronic cash ledger in accordance 
with the provisions of sub-section (6) of section 49 may also be made through the return furnished for the 
relevant tax period in FORM GSTR-3 or FORM GSTR-4 or FORM GSTR-7, as the case may be: 
Provided further that in case of export of goods, application for refund shall be filed only after the 
export manifest or an export report, as the case may be, is delivered under section 41 of the Customs Act, 
1962 in respect of such goods:  
Provided also that in respect of supplies to a Special Economic Zone unit or a Special Economic 
Zone developer, the application for refund shall be filed by the supplier of goods after such goods have 
been admitted in full in the Special Economic Zone for authorized operations, as endorsed by the 
specified officer of the Zone: 
Provided also that in respect of supplies to a Special Economic Zone unit or a Special Economic 
Zone developer, the application for refund shall be filed by the supplier of services along with such 
evidence regarding receipt of services for authorized operations as endorsed by the specified officer of the 
Zone: 
Provided also that in respect of supplies regarded as deemed exports, the application shall be filed 
by the recipient of deemed export supplies: 
Provided also that refund of any amount, after adjusting the tax payable by the applicant out of 
the advance tax deposited by him under section 27  at the time of registration, shall be claimed in the last 
return required to be furnished by him. 
(2)  The application under sub-rule (1) shall be accompanied by any of the following documentary 
evidences, as applicable, to establish that a refund is due to the applicant: 
(a) the reference number of the order and a copy of the order passed by the proper officer or 
an appellate authority or Appellate Tribunal or court resulting in such refund or reference number 
of the payment of the amount specified in sub-section (6) of section 107 and sub-section (8) of 
section 112 claimed as refund; 
(b) a statement containing the number and date of shipping bills or bills of export and the 
number and date of relevant export invoices, in a case where the refund is on account of export of 
goods; 
(c) a statement containing the number and date of invoices and the relevant Bank Realization 
Certificates or Foreign Inward Remittance Certificates, as the case may be, in a case where the 
refund is on account of export of services; 
(d) a statement containing the number and date of invoices as prescribed in rule Invoice.1 
along with the evidence regarding endorsement specified in the third proviso  to sub-rule (1) in 
case of supply of goods made to a Special Economic Zone unit or a Special Economic Zone 
developer; 
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1	
	
Chapter- 
REFUND  
1. Application for refund of tax, interest, penalty, fees or any other amount  
(1) Any person, except the persons covered by notification issued under section 55, claiming refund 
of any tax, interest, penalty, fees or any other amount paid by him, may file an application electronically 
in FORM GST RFD-01   through the Common Portal, either directly or through a Facilitation Centre 
notified by the Commissioner: 
 Provided that any claim for refund relating to balance in the electronic cash ledger in accordance 
with the provisions of sub-section (6) of section 49 may also be made through the return furnished for the 
relevant tax period in FORM GSTR-3 or FORM GSTR-4 or FORM GSTR-7, as the case may be: 
Provided further that in case of export of goods, application for refund shall be filed only after the 
export manifest or an export report, as the case may be, is delivered under section 41 of the Customs Act, 
1962 in respect of such goods:  
Provided also that in respect of supplies to a Special Economic Zone unit or a Special Economic 
Zone developer, the application for refund shall be filed by the supplier of goods after such goods have 
been admitted in full in the Special Economic Zone for authorized operations, as endorsed by the 
specified officer of the Zone: 
Provided also that in respect of supplies to a Special Economic Zone unit or a Special Economic 
Zone developer, the application for refund shall be filed by the supplier of services along with such 
evidence regarding receipt of services for authorized operations as endorsed by the specified officer of the 
Zone: 
Provided also that in respect of supplies regarded as deemed exports, the application shall be filed 
by the recipient of deemed export supplies: 
Provided also that refund of any amount, after adjusting the tax payable by the applicant out of 
the advance tax deposited by him under section 27  at the time of registration, shall be claimed in the last 
return required to be furnished by him. 
(2)  The application under sub-rule (1) shall be accompanied by any of the following documentary 
evidences, as applicable, to establish that a refund is due to the applicant: 
(a) the reference number of the order and a copy of the order passed by the proper officer or 
an appellate authority or Appellate Tribunal or court resulting in such refund or reference number 
of the payment of the amount specified in sub-section (6) of section 107 and sub-section (8) of 
section 112 claimed as refund; 
(b) a statement containing the number and date of shipping bills or bills of export and the 
number and date of relevant export invoices, in a case where the refund is on account of export of 
goods; 
(c) a statement containing the number and date of invoices and the relevant Bank Realization 
Certificates or Foreign Inward Remittance Certificates, as the case may be, in a case where the 
refund is on account of export of services; 
(d) a statement containing the number and date of invoices as prescribed in rule Invoice.1 
along with the evidence regarding endorsement specified in the third proviso  to sub-rule (1) in 
case of supply of goods made to a Special Economic Zone unit or a Special Economic Zone 
developer; 
2	
	
(e) a statement containing the number and date of invoices, the evidence regarding 
endorsement specified in the fourth proviso to sub-rule (1) and the details of payment, along with 
proof thereof, made by the recipient to the supplier for authorized operations as defined under the 
Special Economic Zone Act, 2005, in a case where the refund is on account of supply of services 
made to a Special Economic Zone unit or a Special Economic Zone developer 
(f)  a declaration to the effect that the Special Economic Zone unit or the Special Economic Zone 
developer has not availed of the input tax credit of the tax paid by the supplier of goods or 
services or both, in a case where the refund is on account of supply of goods or services made to a 
Special Economic Zone unit or a Special Economic Zone developer;  
 (g) a statement containing the number and date of invoices along with such other evidence as 
may be notified in this behalf, in a case where the refund is on account of deemed exports; 
(h) a statement in Annex 1 of FORM GST RFD-01 containing the number and date of 
invoices received and issued during a tax period in a case where the claim pertains to refund of 
any unutilized input tax credit under sub-section (3) of section 54 where the credit has 
accumulated on account of rate of tax on inputs being higher than the rate of tax on output 
supplies, other than nil-rated or fully exempt supplies; 
(i) the reference number of the final assessment order and a copy of the said order in a case 
where the refund arises on account of finalisation of provisional assessment; 
(j) a statement showing the details of transactions considered as intra-State supply but which 
is subsequently held to be inter-State supply; 
(k) a statement showing the details of the amount of claim on account of excess payment of 
tax;  
(l) a declaration to the effect that the incidence of tax, interest or any other amount claimed 
as refund has not been passed on to any other person, in a case where the amount of refund 
claimed does not exceed two lakh rupees: 
Provided that a declaration is not required to be furnished in respect of cases covered under clause 
(a) or clause (b) or clause (c) or clause (d) or clause (f) of sub-section (8) of section 54; 
(m) a Certificate in Annex 2 of FORM GST RFD-01 issued by a chartered accountant or a 
cost accountant to the effect that the incidence of tax, interest or any other amount claimed as 
refund has not been passed on to any other person, in a case where the amount of refund claimed 
exceeds two lakh rupees: 
Provided that a certificate is not required to be furnished in respect of cases covered under clause 
(a) or clause (b) or clause (c) or clause (d) or clause (f) of sub-section (8) of section 54; 
Explanation.– For the purposes of this rule,  
(i) in case of refunds referred to in clause (c) of sub-section (8) of section 54, “invoice” 
means invoice conforming to the provisions contained in section 31 ;  
(ii) where the amount of tax has been recovered from the recipient, it shall be deemed that the 
incidence of tax has been passed on to the ultimate consumer. 
(3) Where the application relates to refund of input tax credit, the electronic credit ledger shall be 
debited by the applicant in an amount equal to the refund so claimed. 
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1	
	
Chapter- 
REFUND  
1. Application for refund of tax, interest, penalty, fees or any other amount  
(1) Any person, except the persons covered by notification issued under section 55, claiming refund 
of any tax, interest, penalty, fees or any other amount paid by him, may file an application electronically 
in FORM GST RFD-01   through the Common Portal, either directly or through a Facilitation Centre 
notified by the Commissioner: 
 Provided that any claim for refund relating to balance in the electronic cash ledger in accordance 
with the provisions of sub-section (6) of section 49 may also be made through the return furnished for the 
relevant tax period in FORM GSTR-3 or FORM GSTR-4 or FORM GSTR-7, as the case may be: 
Provided further that in case of export of goods, application for refund shall be filed only after the 
export manifest or an export report, as the case may be, is delivered under section 41 of the Customs Act, 
1962 in respect of such goods:  
Provided also that in respect of supplies to a Special Economic Zone unit or a Special Economic 
Zone developer, the application for refund shall be filed by the supplier of goods after such goods have 
been admitted in full in the Special Economic Zone for authorized operations, as endorsed by the 
specified officer of the Zone: 
Provided also that in respect of supplies to a Special Economic Zone unit or a Special Economic 
Zone developer, the application for refund shall be filed by the supplier of services along with such 
evidence regarding receipt of services for authorized operations as endorsed by the specified officer of the 
Zone: 
Provided also that in respect of supplies regarded as deemed exports, the application shall be filed 
by the recipient of deemed export supplies: 
Provided also that refund of any amount, after adjusting the tax payable by the applicant out of 
the advance tax deposited by him under section 27  at the time of registration, shall be claimed in the last 
return required to be furnished by him. 
(2)  The application under sub-rule (1) shall be accompanied by any of the following documentary 
evidences, as applicable, to establish that a refund is due to the applicant: 
(a) the reference number of the order and a copy of the order passed by the proper officer or 
an appellate authority or Appellate Tribunal or court resulting in such refund or reference number 
of the payment of the amount specified in sub-section (6) of section 107 and sub-section (8) of 
section 112 claimed as refund; 
(b) a statement containing the number and date of shipping bills or bills of export and the 
number and date of relevant export invoices, in a case where the refund is on account of export of 
goods; 
(c) a statement containing the number and date of invoices and the relevant Bank Realization 
Certificates or Foreign Inward Remittance Certificates, as the case may be, in a case where the 
refund is on account of export of services; 
(d) a statement containing the number and date of invoices as prescribed in rule Invoice.1 
along with the evidence regarding endorsement specified in the third proviso  to sub-rule (1) in 
case of supply of goods made to a Special Economic Zone unit or a Special Economic Zone 
developer; 
2	
	
(e) a statement containing the number and date of invoices, the evidence regarding 
endorsement specified in the fourth proviso to sub-rule (1) and the details of payment, along with 
proof thereof, made by the recipient to the supplier for authorized operations as defined under the 
Special Economic Zone Act, 2005, in a case where the refund is on account of supply of services 
made to a Special Economic Zone unit or a Special Economic Zone developer 
(f)  a declaration to the effect that the Special Economic Zone unit or the Special Economic Zone 
developer has not availed of the input tax credit of the tax paid by the supplier of goods or 
services or both, in a case where the refund is on account of supply of goods or services made to a 
Special Economic Zone unit or a Special Economic Zone developer;  
 (g) a statement containing the number and date of invoices along with such other evidence as 
may be notified in this behalf, in a case where the refund is on account of deemed exports; 
(h) a statement in Annex 1 of FORM GST RFD-01 containing the number and date of 
invoices received and issued during a tax period in a case where the claim pertains to refund of 
any unutilized input tax credit under sub-section (3) of section 54 where the credit has 
accumulated on account of rate of tax on inputs being higher than the rate of tax on output 
supplies, other than nil-rated or fully exempt supplies; 
(i) the reference number of the final assessment order and a copy of the said order in a case 
where the refund arises on account of finalisation of provisional assessment; 
(j) a statement showing the details of transactions considered as intra-State supply but which 
is subsequently held to be inter-State supply; 
(k) a statement showing the details of the amount of claim on account of excess payment of 
tax;  
(l) a declaration to the effect that the incidence of tax, interest or any other amount claimed 
as refund has not been passed on to any other person, in a case where the amount of refund 
claimed does not exceed two lakh rupees: 
Provided that a declaration is not required to be furnished in respect of cases covered under clause 
(a) or clause (b) or clause (c) or clause (d) or clause (f) of sub-section (8) of section 54; 
(m) a Certificate in Annex 2 of FORM GST RFD-01 issued by a chartered accountant or a 
cost accountant to the effect that the incidence of tax, interest or any other amount claimed as 
refund has not been passed on to any other person, in a case where the amount of refund claimed 
exceeds two lakh rupees: 
Provided that a certificate is not required to be furnished in respect of cases covered under clause 
(a) or clause (b) or clause (c) or clause (d) or clause (f) of sub-section (8) of section 54; 
Explanation.– For the purposes of this rule,  
(i) in case of refunds referred to in clause (c) of sub-section (8) of section 54, “invoice” 
means invoice conforming to the provisions contained in section 31 ;  
(ii) where the amount of tax has been recovered from the recipient, it shall be deemed that the 
incidence of tax has been passed on to the ultimate consumer. 
(3) Where the application relates to refund of input tax credit, the electronic credit ledger shall be 
debited by the applicant in an amount equal to the refund so claimed. 
3	
	
(4) In case of zero-rated supply of goods or services or both without payment of tax under bond or letter 
of undertaking in accordance with the provisions of sub-section (3) of section 16 of the Integrated Goods 
and Services Tax Act, refund of input tax credit shall be granted as per the following formula: 
Refund Amount = (Turnover of zero-rated supply of goods + Turnover of zero-rated supply of services) x 
Net ITC ÷ Adjusted Total Turnover 
                               
Where,- 
(A) "Refund amount" means the maximum refund that is admissible; 
(B) "Net ITC" means input tax credit availed on inputs and input services during the relevant period; 
(C) "Turnover of zero-rated supply of goods" means the value of zero-rated supply of goods made during 
the relevant period without payment of tax under bond or letter of undertaking; 
(D) "Turnover of zero-rated supply of services" means the value of zero-rated supply of services made 
without payment of tax under bond or letter of undertaking, calculated in the following manner, namely:- 
 Zero-rated supply of services is the aggregate of the payments received during the relevant period for 
zero-rated supply of services and zero-rated supply of services where supply has been completed for 
which payment had been received in advance in any period prior to the relevant period reduced by 
advances received for zero-rated supply of services for which the supply of services has not been 
completed during the relevant period; 
(E) "Adjusted Total turnover" means the turnover in a State or a Union territory, as defined under sub-
section (112) of section 2, excluding the value of exempt supplies other than zero-rated supplies, during 
the relevant period;  
(F) “Relevant period” means the period for which the claim has been filed. 
(5) In case of refund on account of inverted duty structure, refund of input tax credit shall be granted 
as per the following formula: 
Maximum Refund Amount = {(Turnover of inverted rated supply of goods) x Net ITC ÷  Adjusted Total 
Turnover} minus tax payable on such inverted rated supply of goods 
Explanation: The meaning of the term “Net ITC” and “Adjusted Total turnover” shall have the same 
meaning as assigned to them in sub-rule (4). 
2. Acknowledgement  
 (1) Where the application relates to a claim for refund from the electronic cash ledger, an 
acknowledgement in FORM GST RFD-02 shall be made available to the applicant through the Common 
Portal electronically, clearly indicating the date of filing of the claim for refund and the time period 
specified in sub-section (7) of section 54 shall be counted from such date of filing. 
(2) The application for refund, other than claim for refund from electronic cash ledger, shall be 
forwarded to the proper officer who shall, within fifteen days of filing of the said application, scrutinize 
the application for its completeness and where the application is found to be complete in terms of sub-rule 
(2), (3) and (4) of rule 1, an acknowledgement in FORM GST RFD-02 shall be made available to the 
applicant through the Common Portal electronically, clearly indicating the date of filing of the claim for 
refund and the  time period specified in sub-section (7) of section 54 shall be counted from such date of 
filing. 
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Chapter- 
REFUND  
1. Application for refund of tax, interest, penalty, fees or any other amount  
(1) Any person, except the persons covered by notification issued under section 55, claiming refund 
of any tax, interest, penalty, fees or any other amount paid by him, may file an application electronically 
in FORM GST RFD-01   through the Common Portal, either directly or through a Facilitation Centre 
notified by the Commissioner: 
 Provided that any claim for refund relating to balance in the electronic cash ledger in accordance 
with the provisions of sub-section (6) of section 49 may also be made through the return furnished for the 
relevant tax period in FORM GSTR-3 or FORM GSTR-4 or FORM GSTR-7, as the case may be: 
Provided further that in case of export of goods, application for refund shall be filed only after the 
export manifest or an export report, as the case may be, is delivered under section 41 of the Customs Act, 
1962 in respect of such goods:  
Provided also that in respect of supplies to a Special Economic Zone unit or a Special Economic 
Zone developer, the application for refund shall be filed by the supplier of goods after such goods have 
been admitted in full in the Special Economic Zone for authorized operations, as endorsed by the 
specified officer of the Zone: 
Provided also that in respect of supplies to a Special Economic Zone unit or a Special Economic 
Zone developer, the application for refund shall be filed by the supplier of services along with such 
evidence regarding receipt of services for authorized operations as endorsed by the specified officer of the 
Zone: 
Provided also that in respect of supplies regarded as deemed exports, the application shall be filed 
by the recipient of deemed export supplies: 
Provided also that refund of any amount, after adjusting the tax payable by the applicant out of 
the advance tax deposited by him under section 27  at the time of registration, shall be claimed in the last 
return required to be furnished by him. 
(2)  The application under sub-rule (1) shall be accompanied by any of the following documentary 
evidences, as applicable, to establish that a refund is due to the applicant: 
(a) the reference number of the order and a copy of the order passed by the proper officer or 
an appellate authority or Appellate Tribunal or court resulting in such refund or reference number 
of the payment of the amount specified in sub-section (6) of section 107 and sub-section (8) of 
section 112 claimed as refund; 
(b) a statement containing the number and date of shipping bills or bills of export and the 
number and date of relevant export invoices, in a case where the refund is on account of export of 
goods; 
(c) a statement containing the number and date of invoices and the relevant Bank Realization 
Certificates or Foreign Inward Remittance Certificates, as the case may be, in a case where the 
refund is on account of export of services; 
(d) a statement containing the number and date of invoices as prescribed in rule Invoice.1 
along with the evidence regarding endorsement specified in the third proviso  to sub-rule (1) in 
case of supply of goods made to a Special Economic Zone unit or a Special Economic Zone 
developer; 
2	
	
(e) a statement containing the number and date of invoices, the evidence regarding 
endorsement specified in the fourth proviso to sub-rule (1) and the details of payment, along with 
proof thereof, made by the recipient to the supplier for authorized operations as defined under the 
Special Economic Zone Act, 2005, in a case where the refund is on account of supply of services 
made to a Special Economic Zone unit or a Special Economic Zone developer 
(f)  a declaration to the effect that the Special Economic Zone unit or the Special Economic Zone 
developer has not availed of the input tax credit of the tax paid by the supplier of goods or 
services or both, in a case where the refund is on account of supply of goods or services made to a 
Special Economic Zone unit or a Special Economic Zone developer;  
 (g) a statement containing the number and date of invoices along with such other evidence as 
may be notified in this behalf, in a case where the refund is on account of deemed exports; 
(h) a statement in Annex 1 of FORM GST RFD-01 containing the number and date of 
invoices received and issued during a tax period in a case where the claim pertains to refund of 
any unutilized input tax credit under sub-section (3) of section 54 where the credit has 
accumulated on account of rate of tax on inputs being higher than the rate of tax on output 
supplies, other than nil-rated or fully exempt supplies; 
(i) the reference number of the final assessment order and a copy of the said order in a case 
where the refund arises on account of finalisation of provisional assessment; 
(j) a statement showing the details of transactions considered as intra-State supply but which 
is subsequently held to be inter-State supply; 
(k) a statement showing the details of the amount of claim on account of excess payment of 
tax;  
(l) a declaration to the effect that the incidence of tax, interest or any other amount claimed 
as refund has not been passed on to any other person, in a case where the amount of refund 
claimed does not exceed two lakh rupees: 
Provided that a declaration is not required to be furnished in respect of cases covered under clause 
(a) or clause (b) or clause (c) or clause (d) or clause (f) of sub-section (8) of section 54; 
(m) a Certificate in Annex 2 of FORM GST RFD-01 issued by a chartered accountant or a 
cost accountant to the effect that the incidence of tax, interest or any other amount claimed as 
refund has not been passed on to any other person, in a case where the amount of refund claimed 
exceeds two lakh rupees: 
Provided that a certificate is not required to be furnished in respect of cases covered under clause 
(a) or clause (b) or clause (c) or clause (d) or clause (f) of sub-section (8) of section 54; 
Explanation.– For the purposes of this rule,  
(i) in case of refunds referred to in clause (c) of sub-section (8) of section 54, “invoice” 
means invoice conforming to the provisions contained in section 31 ;  
(ii) where the amount of tax has been recovered from the recipient, it shall be deemed that the 
incidence of tax has been passed on to the ultimate consumer. 
(3) Where the application relates to refund of input tax credit, the electronic credit ledger shall be 
debited by the applicant in an amount equal to the refund so claimed. 
3	
	
(4) In case of zero-rated supply of goods or services or both without payment of tax under bond or letter 
of undertaking in accordance with the provisions of sub-section (3) of section 16 of the Integrated Goods 
and Services Tax Act, refund of input tax credit shall be granted as per the following formula: 
Refund Amount = (Turnover of zero-rated supply of goods + Turnover of zero-rated supply of services) x 
Net ITC ÷ Adjusted Total Turnover 
                               
Where,- 
(A) "Refund amount" means the maximum refund that is admissible; 
(B) "Net ITC" means input tax credit availed on inputs and input services during the relevant period; 
(C) "Turnover of zero-rated supply of goods" means the value of zero-rated supply of goods made during 
the relevant period without payment of tax under bond or letter of undertaking; 
(D) "Turnover of zero-rated supply of services" means the value of zero-rated supply of services made 
without payment of tax under bond or letter of undertaking, calculated in the following manner, namely:- 
 Zero-rated supply of services is the aggregate of the payments received during the relevant period for 
zero-rated supply of services and zero-rated supply of services where supply has been completed for 
which payment had been received in advance in any period prior to the relevant period reduced by 
advances received for zero-rated supply of services for which the supply of services has not been 
completed during the relevant period; 
(E) "Adjusted Total turnover" means the turnover in a State or a Union territory, as defined under sub-
section (112) of section 2, excluding the value of exempt supplies other than zero-rated supplies, during 
the relevant period;  
(F) “Relevant period” means the period for which the claim has been filed. 
(5) In case of refund on account of inverted duty structure, refund of input tax credit shall be granted 
as per the following formula: 
Maximum Refund Amount = {(Turnover of inverted rated supply of goods) x Net ITC ÷  Adjusted Total 
Turnover} minus tax payable on such inverted rated supply of goods 
Explanation: The meaning of the term “Net ITC” and “Adjusted Total turnover” shall have the same 
meaning as assigned to them in sub-rule (4). 
2. Acknowledgement  
 (1) Where the application relates to a claim for refund from the electronic cash ledger, an 
acknowledgement in FORM GST RFD-02 shall be made available to the applicant through the Common 
Portal electronically, clearly indicating the date of filing of the claim for refund and the time period 
specified in sub-section (7) of section 54 shall be counted from such date of filing. 
(2) The application for refund, other than claim for refund from electronic cash ledger, shall be 
forwarded to the proper officer who shall, within fifteen days of filing of the said application, scrutinize 
the application for its completeness and where the application is found to be complete in terms of sub-rule 
(2), (3) and (4) of rule 1, an acknowledgement in FORM GST RFD-02 shall be made available to the 
applicant through the Common Portal electronically, clearly indicating the date of filing of the claim for 
refund and the  time period specified in sub-section (7) of section 54 shall be counted from such date of 
filing. 
4	
	
 Provided that where the claim for refund of integrated tax is on account of export of goods, the 
acknowledgment shall be issued within a period of three days of filing of such claim. 
(3) Where any deficiencies are noticed, the proper officer shall communicate the deficiencies to the 
applicant in FORM GST RFD-03 through the Common Portal electronically, requiring him to file a 
fresh refund application after rectification of such deficiencies. 
(4) Where deficiencies have been communicated in FORM GST RFD-03 under the GST Rules of 
the State, the same shall also deemed to have been communicated under this Rule along with deficiencies 
communicated under sub-rule (3). 
[CGST Rules] 
(4) Where deficiencies have been communicated in FORM GST RFD-03 under the CGST Rules, 
the same shall also deemed to have been communicated under this Rule along with deficiencies 
communicated under sub-rule (3). 
[SGST Rules] 
3. Grant of provisional refund 
(1)  The provisional refund in accordance with the provisions of sub-section (6) of section 54 shall be 
granted subject to the condition that the person claiming refund has, during any period of five years 
immediately preceding the tax period to which the claim for refund relates, not been prosecuted for any 
offence under the Act or under an existing law where the amount of tax evaded exceeds two hundred and 
fifty lakh rupees;  
 (2)  The proper officer, after scrutiny of the claim and the evidence submitted in support thereof and 
on being prima facie satisfied that the amount claimed as refund under sub-rule (1) is due to the applicant 
in accordance with the provisions of sub-section (6) of section 54, shall make an order in FORM GST 
RFD-04, sanctioning the amount of refund due to the said applicant on a provisional basis within a period 
not exceeding seven days from the date of acknowledgement under sub-rule (1) or sub-rule (2) of rule 2. 
(3) The proper officer shall issue a payment advice in FORM GST RFD-05 for the amount 
sanctioned under sub-rule (2) and the same shall be electronically credited to any of the bank accounts of 
the applicant mentioned in his registration particulars and as specified in the application for refund. 
4. Order sanctioning refund 
(1) Where, upon examination of the application, the proper officer is satisfied that a refund under 
sub-section (5) of section  54 is due and payable to the applicant, he shall make an order in FORM GST 
RFD-06, sanctioning the amount of refund to which the applicant is entitled, mentioning therein the 
amount, if any, refunded to him on a provisional basis under sub-section (6) of section  54, amount 
adjusted against any outstanding demand under the Act or under any existing law and the balance amount 
refundable: 
Provided that in cases where the amount of refund is completely adjusted against any outstanding 
demand under the Act or under any existing law, an order giving details of the adjustment shall be issued 
in Part A of FORM GST RFD-07. 
(2) Where the proper officer or the Commissioner is of the opinion that the amount of refund is liable 
to be withheld under the provisions of sub-section (10) or, as the case may be, sub-section (11) of section 
54, he shall pass an order in Part B of FORM GST RFD-07 informing him the reasons for withholding 
of such refund. 
Page 5


1	
	
Chapter- 
REFUND  
1. Application for refund of tax, interest, penalty, fees or any other amount  
(1) Any person, except the persons covered by notification issued under section 55, claiming refund 
of any tax, interest, penalty, fees or any other amount paid by him, may file an application electronically 
in FORM GST RFD-01   through the Common Portal, either directly or through a Facilitation Centre 
notified by the Commissioner: 
 Provided that any claim for refund relating to balance in the electronic cash ledger in accordance 
with the provisions of sub-section (6) of section 49 may also be made through the return furnished for the 
relevant tax period in FORM GSTR-3 or FORM GSTR-4 or FORM GSTR-7, as the case may be: 
Provided further that in case of export of goods, application for refund shall be filed only after the 
export manifest or an export report, as the case may be, is delivered under section 41 of the Customs Act, 
1962 in respect of such goods:  
Provided also that in respect of supplies to a Special Economic Zone unit or a Special Economic 
Zone developer, the application for refund shall be filed by the supplier of goods after such goods have 
been admitted in full in the Special Economic Zone for authorized operations, as endorsed by the 
specified officer of the Zone: 
Provided also that in respect of supplies to a Special Economic Zone unit or a Special Economic 
Zone developer, the application for refund shall be filed by the supplier of services along with such 
evidence regarding receipt of services for authorized operations as endorsed by the specified officer of the 
Zone: 
Provided also that in respect of supplies regarded as deemed exports, the application shall be filed 
by the recipient of deemed export supplies: 
Provided also that refund of any amount, after adjusting the tax payable by the applicant out of 
the advance tax deposited by him under section 27  at the time of registration, shall be claimed in the last 
return required to be furnished by him. 
(2)  The application under sub-rule (1) shall be accompanied by any of the following documentary 
evidences, as applicable, to establish that a refund is due to the applicant: 
(a) the reference number of the order and a copy of the order passed by the proper officer or 
an appellate authority or Appellate Tribunal or court resulting in such refund or reference number 
of the payment of the amount specified in sub-section (6) of section 107 and sub-section (8) of 
section 112 claimed as refund; 
(b) a statement containing the number and date of shipping bills or bills of export and the 
number and date of relevant export invoices, in a case where the refund is on account of export of 
goods; 
(c) a statement containing the number and date of invoices and the relevant Bank Realization 
Certificates or Foreign Inward Remittance Certificates, as the case may be, in a case where the 
refund is on account of export of services; 
(d) a statement containing the number and date of invoices as prescribed in rule Invoice.1 
along with the evidence regarding endorsement specified in the third proviso  to sub-rule (1) in 
case of supply of goods made to a Special Economic Zone unit or a Special Economic Zone 
developer; 
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(e) a statement containing the number and date of invoices, the evidence regarding 
endorsement specified in the fourth proviso to sub-rule (1) and the details of payment, along with 
proof thereof, made by the recipient to the supplier for authorized operations as defined under the 
Special Economic Zone Act, 2005, in a case where the refund is on account of supply of services 
made to a Special Economic Zone unit or a Special Economic Zone developer 
(f)  a declaration to the effect that the Special Economic Zone unit or the Special Economic Zone 
developer has not availed of the input tax credit of the tax paid by the supplier of goods or 
services or both, in a case where the refund is on account of supply of goods or services made to a 
Special Economic Zone unit or a Special Economic Zone developer;  
 (g) a statement containing the number and date of invoices along with such other evidence as 
may be notified in this behalf, in a case where the refund is on account of deemed exports; 
(h) a statement in Annex 1 of FORM GST RFD-01 containing the number and date of 
invoices received and issued during a tax period in a case where the claim pertains to refund of 
any unutilized input tax credit under sub-section (3) of section 54 where the credit has 
accumulated on account of rate of tax on inputs being higher than the rate of tax on output 
supplies, other than nil-rated or fully exempt supplies; 
(i) the reference number of the final assessment order and a copy of the said order in a case 
where the refund arises on account of finalisation of provisional assessment; 
(j) a statement showing the details of transactions considered as intra-State supply but which 
is subsequently held to be inter-State supply; 
(k) a statement showing the details of the amount of claim on account of excess payment of 
tax;  
(l) a declaration to the effect that the incidence of tax, interest or any other amount claimed 
as refund has not been passed on to any other person, in a case where the amount of refund 
claimed does not exceed two lakh rupees: 
Provided that a declaration is not required to be furnished in respect of cases covered under clause 
(a) or clause (b) or clause (c) or clause (d) or clause (f) of sub-section (8) of section 54; 
(m) a Certificate in Annex 2 of FORM GST RFD-01 issued by a chartered accountant or a 
cost accountant to the effect that the incidence of tax, interest or any other amount claimed as 
refund has not been passed on to any other person, in a case where the amount of refund claimed 
exceeds two lakh rupees: 
Provided that a certificate is not required to be furnished in respect of cases covered under clause 
(a) or clause (b) or clause (c) or clause (d) or clause (f) of sub-section (8) of section 54; 
Explanation.– For the purposes of this rule,  
(i) in case of refunds referred to in clause (c) of sub-section (8) of section 54, “invoice” 
means invoice conforming to the provisions contained in section 31 ;  
(ii) where the amount of tax has been recovered from the recipient, it shall be deemed that the 
incidence of tax has been passed on to the ultimate consumer. 
(3) Where the application relates to refund of input tax credit, the electronic credit ledger shall be 
debited by the applicant in an amount equal to the refund so claimed. 
3	
	
(4) In case of zero-rated supply of goods or services or both without payment of tax under bond or letter 
of undertaking in accordance with the provisions of sub-section (3) of section 16 of the Integrated Goods 
and Services Tax Act, refund of input tax credit shall be granted as per the following formula: 
Refund Amount = (Turnover of zero-rated supply of goods + Turnover of zero-rated supply of services) x 
Net ITC ÷ Adjusted Total Turnover 
                               
Where,- 
(A) "Refund amount" means the maximum refund that is admissible; 
(B) "Net ITC" means input tax credit availed on inputs and input services during the relevant period; 
(C) "Turnover of zero-rated supply of goods" means the value of zero-rated supply of goods made during 
the relevant period without payment of tax under bond or letter of undertaking; 
(D) "Turnover of zero-rated supply of services" means the value of zero-rated supply of services made 
without payment of tax under bond or letter of undertaking, calculated in the following manner, namely:- 
 Zero-rated supply of services is the aggregate of the payments received during the relevant period for 
zero-rated supply of services and zero-rated supply of services where supply has been completed for 
which payment had been received in advance in any period prior to the relevant period reduced by 
advances received for zero-rated supply of services for which the supply of services has not been 
completed during the relevant period; 
(E) "Adjusted Total turnover" means the turnover in a State or a Union territory, as defined under sub-
section (112) of section 2, excluding the value of exempt supplies other than zero-rated supplies, during 
the relevant period;  
(F) “Relevant period” means the period for which the claim has been filed. 
(5) In case of refund on account of inverted duty structure, refund of input tax credit shall be granted 
as per the following formula: 
Maximum Refund Amount = {(Turnover of inverted rated supply of goods) x Net ITC ÷  Adjusted Total 
Turnover} minus tax payable on such inverted rated supply of goods 
Explanation: The meaning of the term “Net ITC” and “Adjusted Total turnover” shall have the same 
meaning as assigned to them in sub-rule (4). 
2. Acknowledgement  
 (1) Where the application relates to a claim for refund from the electronic cash ledger, an 
acknowledgement in FORM GST RFD-02 shall be made available to the applicant through the Common 
Portal electronically, clearly indicating the date of filing of the claim for refund and the time period 
specified in sub-section (7) of section 54 shall be counted from such date of filing. 
(2) The application for refund, other than claim for refund from electronic cash ledger, shall be 
forwarded to the proper officer who shall, within fifteen days of filing of the said application, scrutinize 
the application for its completeness and where the application is found to be complete in terms of sub-rule 
(2), (3) and (4) of rule 1, an acknowledgement in FORM GST RFD-02 shall be made available to the 
applicant through the Common Portal electronically, clearly indicating the date of filing of the claim for 
refund and the  time period specified in sub-section (7) of section 54 shall be counted from such date of 
filing. 
4	
	
 Provided that where the claim for refund of integrated tax is on account of export of goods, the 
acknowledgment shall be issued within a period of three days of filing of such claim. 
(3) Where any deficiencies are noticed, the proper officer shall communicate the deficiencies to the 
applicant in FORM GST RFD-03 through the Common Portal electronically, requiring him to file a 
fresh refund application after rectification of such deficiencies. 
(4) Where deficiencies have been communicated in FORM GST RFD-03 under the GST Rules of 
the State, the same shall also deemed to have been communicated under this Rule along with deficiencies 
communicated under sub-rule (3). 
[CGST Rules] 
(4) Where deficiencies have been communicated in FORM GST RFD-03 under the CGST Rules, 
the same shall also deemed to have been communicated under this Rule along with deficiencies 
communicated under sub-rule (3). 
[SGST Rules] 
3. Grant of provisional refund 
(1)  The provisional refund in accordance with the provisions of sub-section (6) of section 54 shall be 
granted subject to the condition that the person claiming refund has, during any period of five years 
immediately preceding the tax period to which the claim for refund relates, not been prosecuted for any 
offence under the Act or under an existing law where the amount of tax evaded exceeds two hundred and 
fifty lakh rupees;  
 (2)  The proper officer, after scrutiny of the claim and the evidence submitted in support thereof and 
on being prima facie satisfied that the amount claimed as refund under sub-rule (1) is due to the applicant 
in accordance with the provisions of sub-section (6) of section 54, shall make an order in FORM GST 
RFD-04, sanctioning the amount of refund due to the said applicant on a provisional basis within a period 
not exceeding seven days from the date of acknowledgement under sub-rule (1) or sub-rule (2) of rule 2. 
(3) The proper officer shall issue a payment advice in FORM GST RFD-05 for the amount 
sanctioned under sub-rule (2) and the same shall be electronically credited to any of the bank accounts of 
the applicant mentioned in his registration particulars and as specified in the application for refund. 
4. Order sanctioning refund 
(1) Where, upon examination of the application, the proper officer is satisfied that a refund under 
sub-section (5) of section  54 is due and payable to the applicant, he shall make an order in FORM GST 
RFD-06, sanctioning the amount of refund to which the applicant is entitled, mentioning therein the 
amount, if any, refunded to him on a provisional basis under sub-section (6) of section  54, amount 
adjusted against any outstanding demand under the Act or under any existing law and the balance amount 
refundable: 
Provided that in cases where the amount of refund is completely adjusted against any outstanding 
demand under the Act or under any existing law, an order giving details of the adjustment shall be issued 
in Part A of FORM GST RFD-07. 
(2) Where the proper officer or the Commissioner is of the opinion that the amount of refund is liable 
to be withheld under the provisions of sub-section (10) or, as the case may be, sub-section (11) of section 
54, he shall pass an order in Part B of FORM GST RFD-07 informing him the reasons for withholding 
of such refund. 
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(3) Where the proper officer is satisfied, for reasons to be recorded in writing, that the whole or any 
part of the amount claimed as refund is not admissible or is not payable to the applicant, he shall issue a 
notice in FORM GST RFD-08 to the applicant, requiring him to furnish a reply in FORM GST RFD-09 
within fifteen days of the receipt of such notice and after considering the reply, make an order in FORM 
GST RFD-06, sanctioning the amount of refund in whole or part, or rejecting the said refund claim and 
the said order shall be made available to the applicant electronically and the provision of sub-rule (1) 
shall, mutatis mutandis, apply to the extent refund is allowed: 
Provided that no application for refund shall be rejected without giving the applicant a reasonable 
opportunity of being heard. 
(4) Where the proper officer is satisfied that the amount refundable under sub-rule (1) or (2) is 
payable to the applicant under sub-section (8) of section 54, he shall make an order in FORM GST RFD-
06 and issue a payment advice in FORM GST RFD-05, for the amount of refund and the same shall be 
electronically credited to any of the bank accounts of the applicant mentioned in his registration 
particulars and as specified in the application for refund. 
(5) Where the proper officer is satisfied that the amount refundable under sub-rule (1) or sub-rule (2) 
is not payable to the applicant under sub-section (8) of section 54, he shall make an order in FORM GST 
RFD-06 and issue an advice in FORM GST RFD-05, for the amount of refund to be credited to the 
Consumer Welfare Fund. 
5. Credit of the amount of rejected refund claim 
(1) Where any deficiencies have been communicated under sub-rule (3) of rule 2, the amount debited 
under sub-rule (3) of rule 1 shall be re-credited to the electronic credit ledger. 
(2) Where any amount claimed as refund is rejected under rule 4, either fully or partly, the amount 
debited, to the extent of rejection, shall be re-credited to the electronic credit ledger by an order made in 
FORM GST PMT-03.  
Explanation.– For the purposes of this rule, a refund shall be deemed to be rejected, if the appeal is finally 
rejected or if the claimant gives an undertaking in writing to the proper officer that he shall not file an 
appeal. 
6. Order sanctioning interest on delayed refunds 
Where any interest is due and payable to the applicant under section 56, the proper officer shall make an 
order along with a payment advice in FORM GST RFD-05, specifying therein the amount of refund 
which is delayed, the period of delay for which interest is payable and the amount of interest payable, and 
such amount of interest shall be electronically credited to any of the bank accounts of the applicant 
mentioned in his registration particulars and as specified in the application for refund. 
7. Refund of tax to certain persons 
(1)  Any person eligible to claim refund of tax paid by him on his inward supplies as per notification 
issued section 55 shall apply for refund in FORM GST RFD-10 once in every quarter, electronically on 
the Common Portal, either directly or from a Facilitation Centre notified by the Commissioner, along with 
a statement of inward supplies of goods or services or both in FORM GSTR-11, prepared on the basis of 
statement of outward supplies furnished by corresponding suppliers in FORM GSTR-1. 
(2) An acknowledgement for receipt of the application for refund shall be issued in FORM GST 
RFD-02. 
(3) Refund of tax paid by the applicant shall be available if-