A GST refund allows a registered taxpayer to reclaim excess tax paid or unutilized Input Tax Credit (ITC) under specific conditions. The refund ensures that your working capital isn’t unnecessarily blocked and your business stays financially agile.
Refunds under GST can be claimed under the following circumstances:
Exports of goods or services (with or without payment of IGST)
Inverted Duty Structure – where the input tax rate is higher than the output tax rate
Excess Tax Paid – due to mistake or incorrect classification
Finalization of Provisional Assessment
Supplies to SEZ Units/Developers
Deemed Exports
Wrong Tax Paid – CGST/SGST instead of IGST or vice versa
Excess Balance in Electronic Cash Ledger
