GST Refund Filing (RFD-01)
A GST refund gets back tax or input tax credit that is stuck with the government, most often credit piled up on exports under LUT or blocked by an inverted duty structure. Most claims are filed in Form RFD-01 on the GST portal within two years of the relevant date, and eligible low-risk claims can get 90% paid provisionally.
What it is
A GST refund is money the government owes back to you. It may be input tax credit you cannot use because your output is exported or taxed at a lower rate than your inputs. Or it may be cash you deposited and never set off against tax.
The law is Section 54 of the CGST Act, 2017 read with Rules 89 to 92 of the CGST Rules. You apply in Form GST RFD-01 on the GST portal within two years from the “relevant date”, which differs by type of claim. The officer either acknowledges a complete claim in RFD-02 or points out gaps in a deficiency memo, RFD-03. The final order follows in RFD-06, within 60 days of a complete application.
Who it applies to
You export under LUT
You export goods or services, or supply to an SEZ unit or developer, without paying IGST under a Letter of Undertaking. Credit on your inputs builds up, and Section 54(3) lets you claim it back.
Your inputs carry a higher rate than your sales
Think of a Faridabad unit that buys raw material at one GST rate and sells finished goods at a lower one. The excess credit on input goods can be refunded, unless the goods or services are notified as ineligible.
You paid extra cash or tax
You have balance sitting in the electronic cash ledger, or you paid tax by mistake or twice. Both can be claimed through RFD-01.
Why it matters
It frees up working capital
Blocked credit is your money sitting in a ledger. For an exporter, or a manufacturer with inverted rates, it grows every month you do not claim it.
The two-year clock is strict
Section 54(1) allows two years from the relevant date. Miss it and the claim is lost for good, whatever the amount.
A clean claim is paid faster
Low-risk claims can get 90% sanctioned provisionally, and the officer must decide within 60 days of a complete application or pay interest.
Documents required
For export claims
- Statement of export invoices with shipping bill or bill of export details
- Bank realisation certificate or foreign inward remittance certificate for services
- Copy of the LUT filed in RFD-11
- Endorsement from the SEZ officer for SEZ supplies
For inverted duty claims
- Statement of inward and outward supplies for the period
- GSTR-2B and purchase register for input goods
- Rate-wise sales summary showing the inversion
- Working of the Rule 89(5) formula
For every claim
- CA certificate on unjust enrichment where the claim exceeds ₹2 lakh, or a self-declaration below that
- GSTR-1 and GSTR-3B filed for the period
- Bank account validated on the GST portal
- DSC or EVC of the authorised signatory
Refund types at a glance
| Type of claim | Relevant date (start of the two years) | Provisional 90% |
|---|---|---|
| Export of goods under LUT | Date the ship or aircraft leaves India, or the goods cross the land frontier | Yes, for system-identified low-risk claims |
| Export of services under LUT | Date of receipt of payment in convertible foreign exchange, or invoice date if paid in advance | Yes, for low-risk claims |
| Inverted duty structure | Due date of the Section 39 return for the period in which the claim arises | Yes, for claims filed on or after 1 October 2025 that are low-risk |
| Tax paid in excess or by mistake | Date of payment | No |
| Excess balance in cash ledger | No time limit, provided your returns are filed | No |
One route sits outside RFD-01. If you export goods on payment of IGST, the shipping bill itself is treated as the refund application under Rule 96, and the refund flows through customs once your GSTR-1 and GSTR-3B match. Exporting under LUT instead? Your claim is for the unused credit, and that one needs RFD-01. If you have not yet filed your LUT for the year, our GST LUT filing service covers it.
How it works
Pick the right category and period
We decide which refund type fits and which tax periods to group. One claim can group several tax periods, as long as each is still inside the two years.
Work out the eligible amount
For exports we apply the Rule 89(4) formula: zero-rated turnover divided by adjusted total turnover, multiplied by net ITC. For inverted duty we apply Rule 89(5), which counts credit on input goods only, not input services.
Debit the ledger and file RFD-01
When RFD-01 is filed, the claimed amount is debited from your credit or cash ledger. Statements and certificates go in with it.
Answer the deficiency memo, if any
Within 15 days, the officer either acknowledges the claim in RFD-02 or issues a deficiency memo in RFD-03. If there is a memo, we fix the gap and file a fresh application.
Track the provisional and final orders
Eligible claims get 90% provisionally in RFD-04 within 7 days of acknowledgement. The final order comes in RFD-06, and we reply to any show cause notice before the officer rejects any part.
Timelines
Apply within two years
RFD-01 must be filed within two years from the relevant date under Section 54(1). Cash ledger refunds are the exception, with no time limit once your returns are filed.
Acknowledgement in 15 days
RFD-02 or a deficiency memo in RFD-03 within 15 days of filing. Provisional 90% in RFD-04 within 7 days of acknowledgement, where eligible.
Final order in 60 days
The officer must pass the order within 60 days of a complete application under Section 54(7). After that, Section 56 adds interest at 6% a year on the delayed refund.
What happens if you miss the two-year limit
The claim is time-barred
Once two years pass from the relevant date, Section 54(1) leaves no route to file. No late fee can revive it.
A deficiency memo can cost time
Here is the catch. A Faridabad software exporter files for an old quarter a week before its two years run out, and gets an RFD-03 memo. The corrected claim is a fresh filing, and it can land outside the limit.
Rejection can be appealed
If RFD-06 rejects the claim, an appeal lies under Section 107 within three months, extendable by one month for sufficient cause. Our GST notice and appeal team drafts it.
Frequently asked questions
What is the time limit for claiming a GST refund?
Two years from the relevant date, under Section 54(1) of the CGST Act. The relevant date depends on the claim: shipment date for exported goods, receipt of foreign exchange for exported services, and the due date of the Section 39 return for inverted duty claims. Refund of excess balance in the electronic cash ledger has no time limit, provided your returns are filed. A monthly diary of these dates keeps every claim in time.
Can I get a refund of input tax credit on exports?
Yes, if you export under a Letter of Undertaking without paying IGST. Section 54(3) allows refund of unutilised credit on zero-rated supplies, worked out under Rule 89(4) in proportion to your export turnover. You file RFD-01 with the export invoices and shipping bills or foreign remittance proof. If you export goods on payment of IGST instead, the shipping bill itself works as your refund claim.
What is an inverted duty structure refund?
It is a refund of credit that builds up because your inputs carry a higher GST rate than your output. Section 54(3) allows it, except for goods or services notified as ineligible. Under Rule 89(5), only credit on input goods counts; credit on input services and capital goods does not. The two-year clock runs from the due date of the return for that period, so file period by period.
What is a provisional refund?
It is 90% of the claimed amount paid before final verification, under Section 54(6) and Rule 91. Since 1 October 2025, the system flags low-risk claims and the officer sanctions 90% in RFD-04 within 7 days of acknowledgement. This covers zero-rated supplies and, for claims filed on or after 1 October 2025, inverted duty claims too. The balance 10% follows with the final order.
What is a deficiency memo in RFD-03?
It is the officer’s note that your claim is incomplete, issued within 15 days of filing instead of an acknowledgement. Common reasons are a missing statement, an unsigned certificate or a mismatch with returns. You correct the gap and file a fresh RFD-01 for the same claim. A careful first filing avoids the memo, and that matters most when the two-year limit is close.
Do I need a CA certificate for a GST refund?
Only when the claim exceeds ₹2 lakh. Rule 89(2) asks for a chartered accountant’s or cost accountant’s certificate that the tax burden was not passed on to anyone else, the unjust enrichment test. Below ₹2 lakh, a self-declaration is enough. The certificate is uploaded with RFD-01, so it has to be ready before filing. We arrange it alongside the claim, and the filing goes in complete.
Can I get back the balance in my electronic cash ledger?
Yes, any excess balance in the cash ledger can be refunded under Section 49(6) by filing RFD-01 under the cash ledger category. The two-year limit does not apply to these claims, provided your returns under Section 39 are filed. You cannot withdraw cash on its own; the refund passes through the same acknowledgement and order process. It is a useful clean-up after a business closes or changes its model.
What if the department delays my refund?
Interest becomes payable. Section 54(7) requires the order within 60 days of receiving a complete application, and Section 56 adds interest at 6% a year on the amount refunded after that period. The clock runs from the date of a complete claim, which is why a deficiency-free filing matters. If the refund stays stuck, we follow up with the jurisdictional officer in writing.
Is there any minimum amount for a GST refund?
Yes, Section 54(14) says no refund is paid if the amount is less than ₹1,000. Budget 2026 proposed dropping this floor for goods exported on payment of tax. Grouping several months into one claim takes a small amount past the limit. There is no government fee for filing RFD-01, so a sensible grouping costs you nothing extra.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
There is no government fee for filing RFD-01. A CA certificate on unjust enrichment is needed only where the claim exceeds ₹2 lakh. Interest at 6% a year is payable to you under Section 56 if the refund is delayed beyond 60 days.
Ready to begin?
Tell us what you export or sell and which periods your credit is stuck in, and we will file RFD-01 well inside the two years.