goods and service tax

Published on 10 April 2025

"Essential Guide to GST Refunds: Key Amendments and Claim Process for 2025"

Introduction

GST refunds form an integral part of India's indirect tax framework, safeguarding businesses against disproportionately bearing the brunt of overpayments or idle input tax credits. With multiple amendments taking effect from March and April 2025, taxpayers need to know the new conditions of eligibility, documentation guidelines, and procedural directives for claiming GST refunds successfully.

When Can You Claim a GST Refund?

You may be entitled to GST refund in the following situations:

  • Excess balance in electronic cash ledger
  • Unutilized Input Tax Credit (ITC), e.g., because of inverted duty structure or zero-rated supplies/exports
  • Exports of goods/services, whether tax has been paid or not
  • Supplies to developers/units of Special Economic Zone (SEZ)
  • Deemed exports
  • Excess payment of tax by mistake
  • Tax on supplies to United Nations (UN), embassies, or other notified agencies
  • Refund after final determination, appeal, or revision order

Important: According to the March 2025 amendment, refunds are not allowed for any tax, interest, or penalty paid during the period from July 1, 2017, to March 31, 2020, if those payments were made before the new rules.

Key GST Refund Amendments Effective 2025

No Refund for Settled Payments (Rule 164)

Refunds for such amounts paid within the time frame provided to settle historical liabilities should not be requested.

Partial Withdrawal of Appeals

Partial withdrawal of appeals is permitted for the July 1, 2017, through March 31, 2020, period without impacting claims for future periods.

E-Invoicing Compliance

Firms with an Annual Aggregate Turnover (AATO) of over ₹10 crore must report B2B invoices within 30 days for IRN generation, which will affect ITC and refund eligibility.

Certification Threshold

Claims exceeding ₹2 lakhs will need a certification by a Chartered Accountant or Cost Accountant.

Step-by-Step GST Refund Application Process (2025)

Pre-Application Form (Mandatory for All Refunds)

  1. Login to the GST portal.
  2. Proceed to 'Services' > 'Refunds' > 'Refund Pre-Application Form'.
  3. Complete the form with the following information:
    • Nature of business
    • Aadhaar number of primary signatory (compulsory)
    • Date of issue of IEC (in exporters' case)
    • Exports amount, income tax, advance tax, and capital expenditure (for the year being referred)
  4. File the form (observation: once filed, it cannot be amended, and no signature is required).
  5. Obtain an Application Reference Number (ARN) for tracing purposes.

Filing Form RFD-01

  1. Go to 'Services' > 'Refunds' > 'Application for Refund'.
  2. Select the type of refund and date range.
  3. Prepare the application for refund.
  4. Fill in the necessary details and upload documents to substantiate:
    • Invoices, shipping bills, and bank realization certificates (for exports)
  • Endorsement and declaration by SEZ (for SEZ supplies)
  • Chartered Accountant certificate (in case of claiming over ₹2 lakhs)
  1. Authenticate and sign using DSC/EVC.
  2. File online.
  3. Receive ARN and acknowledgement.
  4. Track status using 'Track Application Status' on portal.

Checklist of documents

  • Copies of invoices
  • Bills/Bills of export (in the event of exports)
  • Bank realization certificate (in the event of export of services)
  • Endorsement and declaration by SEZ (in the event of SEZ supplies)
  • Chartered Accountant/Cost Accountant certificate (in case of claim over ₹2 lakhs)
  • Orders relating (for appeal/refund after evaluation)
  • Self-declaration (in case of claim below ₹2 lakhs)

Other Important Provisions

  • Refund below ₹1,000 will not be granted.
  • Interest on delayed refunds: Will be charged in case it is not sanctioned within 60 days.
  • Provisional refund: 90% of refund on zero-rated supplies can be provisionally released.
  • Two-year strict deadline for filing within two years from the relevant date.
  • No refund of Input Tax Credit (ITC) for building services to be resold.

FAQs

What is the due date for filing a GST refund? You must file within two years from the relevant date, based on the type of refund.

**Do I need a Chartered Accountant certificate for each refund claim? No, a CA certificate is required only for claims exceeding ₹2 lakhs.

Can I get a refund on taxes paid before March 27, 2025, for the period from 2017–2020? No, refunds on such settled payments are disallowed under the prevailing amendments.

How do I track my GST refund application? Log in to the GST portal and make use of the 'Track Application Status' facility.

Conclusion

GST refunds are essential to keep trade liquidity and compliance in place. Since recent changes were made in 2025, taxpayers need to be aligned with the revised procedures, document properly, and identify new regulations—especially settled obligations. Staying updated and compliant will guarantee timely refunds as well as avoid unnecessary disputes.