RefundIntermediate⏱ 12 min read🗓 Updated April 2026
How to Claim GST Refund Under Section 54 — Step-by-Step Guide - 2026
GST refund under Section 54 of the CGST Act can be claimed for: exports of goods/services with or without payment of IGST, excess balance in electronic cash ledger, inverted duty structure (where GST on inputs is higher than GST on output), and other specific categories.
Step-by-Step Process
1
Determine Refund Category
Identify your refund type: (a) Export with payment of IGST — refund is automatic via GSTR-1 & shipping bill. (b) Export under LUT without IGST — claim ITC refund via RFD-01. (c) Excess cash in electronic ledger — claim via RFD-01. (d) Inverted duty structure — claim via RFD-01 with GSTR-3B data.
2
File GSTR-1 and GSTR-3B
Refund cannot be claimed for a period unless GSTR-1 and GSTR-3B are filed for that period. Ensure all returns up to the refund period are filed.
3
Fill Form RFD-01
Login to gst.gov.in → Services → Refunds → Application for Refund → Select refund type → Fill Form RFD-01. Attach required documents: shipping bills (exports), invoices, statement of invoices (Annexure-B), bank account details.
4
Await Acknowledgement (RFD-02)
After submission, a provisional acknowledgement (RFD-02) is issued. The proper officer reviews the application within 15 days and issues formal acknowledgement or a deficiency memo (RFD-03).
5
Refund Processing
For IGST paid on exports: refund is directly credited to your bank within 7-30 days. For ITC refunds: the officer issues a provisional sanction (RFD-04) for 90% of the claim, with the balance after verification. Final refund order is issued in RFD-06.
6
Bank Credit
Approved refund amount is directly credited to the bank account linked in your GST registration. Keep your bank details updated.
Pro Tips
For export refunds with IGST paid, the shipping bill functions as the refund claim — GSTR-1 data must match exactly with the shipping bill.
Inverted duty refund cannot be claimed for exempt or nil-rated supplies. Only ITC accumulated due to the rate inversion is eligible.
File the refund claim within 2 years from the relevant date (typically the date of export or return filing).
Maintain all original documents — invoices, shipping bills, LUT copy — as the officer may call for verification.
Penalty for Non-Compliance
⚠️ Interest at 6% per annum applies if the refund is not processed within 60 days of the complete application (Section 56 of the CGST Act). This applies in your favour — you can claim this interest from the department.
Calculate your penalty or interest: Use our free
GST Penalty Calculator to find the exact late fee and interest if you've missed a filing deadline.
Frequently Asked Questions
An LUT allows you to export goods/services without paying IGST upfront. You then claim a refund of the accumulated ITC. LUT must be filed annually on the GST portal (Form RFD-11) before the financial year begins.
IGST export refunds are typically processed in 7-15 working days. ITC refunds through RFD-01 take 30-90 days depending on the officer's workload and whether additional documents are requested.
CGST and SGST paid on exports cannot be directly refunded as such — exports are zero-rated supplies and IGST is the applicable tax. If you have CGST/SGST credit from inputs, claim it as ITC refund under the export without payment of tax category.
