GST Refund Services

Section 54 CGST Act: (1) IGST paid on zero-rated exports — auto-processed via GSTR-1 and ICEGATE linkage; (2) ITC accumulated on zero-rated supplies (exports without IGST payment under LUT) — RFD-01 via Rule 89; (3) inverted duty structure (input GST rate > output GST rate) — RFD-01 under Section 54(3)(ii); (4) excess cash ledger balance — RFD-01 within 30 days; (5) tax paid in excess due to assessment order later set aside; (6) refund due to year-end reconciliation of TCS/TDS credits.

2 years from the 'relevant date' under Rule 89(1). For exports: date of export (shipping bill date). For inverted duty structure: end of the financial year in which the claim arises. For excess payment: date of payment. Missing the 2-year window results in permanent forfeiture — there is no condonation provision under the CGST Act. Even a day's delay after 2 years is fatal — ensure applications are filed well within the deadline.

Rule 89(5): Refund = (Net ITC × Turnover of inverted-rated supplies) ÷ Adjusted Total Turnover. Net ITC excludes ITC on capital goods and exempt supplies. The Supreme Court in VKC Footsteps India (2021) confirmed that ITC on input services is excluded from Net ITC for the Rule 89(5) formula — only ITC on goods qualifies. This is a significant restriction for service-intensive manufacturers.

IGST export refund is auto-processed when: GSTR-1 shipping bill details match ICEGATE customs records. Common reasons for delay: (a) invoice amount, port, or GSTIN mismatch between GSTR-1 and ICEGATE; (b) EGM not filed by the shipping carrier; (c) GSTR-3B not filed for the period; (d) pending alert flags on the GSTIN (tax arrears, pending returns). Resolution: use the GSTN-ICEGATE refund status tool to identify the specific mismatch and resolve via the GSTN helpdesk or amendment.

Section 56 CGST Act: if the refund application is not disposed of within 60 days from the date of receipt of the complete application, the department is liable to pay interest at 6% per annum. Interest accrues automatically — no separate request is needed. The refund + interest can be enforced through a writ petition if the department ignores the Section 56 obligation. Commissioner-level intervention may be required for large stuck refunds.