Indirect Tax Laws · Refunds

GST Refund: Application, Documents and Processing

Updated 5 October 2026 · Fact-checked

You file a GST refund in FORM GST RFD-01 on the common portal within two years of the relevant date. The officer checks it within 15 days and issues either an RFD-02 acknowledgement or an RFD-03 deficiency memo. Zero-rated claims can get 90% provisionally within 7 days. The final order must come within 60 days.

Understand Refund Application, Documents and Processing

A refund claim is a process with a fixed sequence. You apply, the officer scrutinises, and then the claim is either acknowledged or returned. After that it is sanctioned, partly sanctioned or rejected. Exam questions test whether you know the form, the time limit and the order of events.

The application is made electronically in FORM GST RFD-01 under Rule 89, within two years from the relevant date under Section 54(1). Supporting documents go with it. They depend on the type of refund: export invoices and shipping or export details, Foreign Inward Remittance Certificate or Bank Realisation Certificate for services, statements of invoices, and a declaration on unjust enrichment. For claims above ₹2 lakh, a certificate from a chartered accountant or cost accountant is required for the unjust enrichment point (Rule 89(2)(l)). For claims of ₹2 lakh or less, a self-declaration is enough (Rule 89(2)(m)). Section 54(8) is the unjust enrichment provision. It lists the categories where the test does not apply, including refund of tax on exports of goods or services under Section 54(8)(a). The refund of unutilised input tax credit on zero-rated supplies made without payment of tax comes from Section 54(3), not from Section 54(8)(a).

Under Rule 90, the officer scrutinises the application for completeness within 15 days. If it is complete, he issues an acknowledgement in FORM GST RFD-02. On that acknowledgement the application is treated as complete, and the 60-day period runs from the date of the complete application. If something is missing, he issues a deficiency memo in FORM GST RFD-03 within the same 15 days. The applicant cannot just fix the old application. On the Rule 90 position, he must file a fresh application after rectifying the defects, and the 60-day period runs from the date that fresh application is complete. The fresh application must still fall within the Section 54(1) limit, which is measured from the relevant date.

Rule 91 gives a provisional refund for zero-rated supplies of goods or services, other than the categories excluded under Section 54(6). The officer may grant 90% of the refund amount claimed, as computed under Rule 89(4)/(5), within 7 days of acknowledgement. The provisional sanction order is issued in FORM GST RFD-04 and the payment order in FORM GST RFD-05. It is not available for inverted duty claims. It is also not available to an applicant who has been prosecuted in the preceding five years for an offence involving tax evasion of more than ₹2,50,000. The balance is paid after final scrutiny. Under Rule 92 and Section 54(7), the final order must be passed within 60 days of receiving the complete application. If it is fully admissible, the officer issues the final sanction order in FORM GST RFD-06 and a payment order in FORM GST RFD-05. If he plans to reject it, he first issues a show cause notice in FORM GST RFD-08. The applicant replies in FORM GST RFD-09 within 15 days, and a reasoned order follows after a hearing opportunity.

Key rules to remember

Time limit to apply: Application within 2 years from the relevant date; Section 54(1). The relevant date differs by type of refund. A fresh application after a deficiency memo must also satisfy the Section 54(1) limit, measured from the relevant date.
Form of application: FORM GST RFD-01, filed electronically on the common portal; Rule 89. Supporting documents are uploaded with it.
Scrutiny and acknowledgement: Within 15 days: RFD-02 (complete) or RFD-03 (deficient); Rule 90. On acknowledgement in RFD-02 the application is treated as complete, and the 60-day period runs from the date of the complete application. On a deficiency memo, the Rule 90 position is to file a fresh application after rectifying the defects; the 60-day period runs from the date the fresh application is complete, and the Section 54(1) limit is measured from the relevant date.
Provisional refund: Provisional refund = 90% × refund amount claimed (as computed under Rule 89(4)/(5)), within 7 days of acknowledgement; Rule 91. Zero-rated supplies of goods or services only, excluding categories under Section 54(6). Not available to an applicant prosecuted in the preceding five years for tax evasion of more than ₹2,50,000. Provisional order in RFD-04, payment order in RFD-05.
Final order: Order within 60 days from receipt of complete application; Section 54(7). Final sanction order in RFD-06, payment order in RFD-05. RFD-04 is only the provisional order. Delay attracts interest under Section 56, which runs from 60 days after receipt of the complete application.
Rejection route: Show cause notice RFD-08 → reply RFD-09 within 15 days → order RFD-06; Rule 92. The applicant must get an opportunity of being heard before rejection.
Minimum refund: No refund if the amount is less than ₹1,000; Section 54(14).
Unjust enrichment declaration: Claim ≤ ₹2 lakh: self-declaration. Claim > ₹2 lakh: CA or cost accountant certificate; Section 54(8) is the unjust enrichment provision and lists the exceptions. Under Section 54(8)(a) the test does not apply to refund of tax on exports of goods or services. The refund of unutilised ITC on zero-rated supplies made without payment of tax is allowed under Section 54(3). The certificate is under Rule 89(2)(l) and the declaration under Rule 89(2)(m). Check the claim type.

How to solve Refund Application, Documents and Processing questions

For any question on refund procedure, identify where the claim sits on the timeline and apply the rule for that stage.

1Identify the type of refund claim (export without payment of tax, export with payment of tax, inverted duty, excess payment and so on) and the relevant date.
2Check that the application is within two years of the relevant date and that the amount is at least ₹1,000.
3State the form and documents: RFD-01 with statements, invoices, export proof, and the unjust enrichment point: a self-declaration if the claim is ₹2 lakh or less, a CA or cost accountant certificate if it is above ₹2 lakh. Note that unjust enrichment does not apply to zero-rated exports.
4Apply the 15-day scrutiny rule. Decide whether the result is RFD-02 (acknowledgement) or RFD-03 (deficiency memo and fresh application).
5If the claim is for zero-rated supplies (and not in a category excluded under Section 54(6)), and the applicant has no prosecution for tax evasion of more than ₹2,50,000 in the preceding five years, compute the 90% provisional refund on the amount claimed under Rule 89(4)/(5) and note the 7-day limit. Do not allow it for inverted duty claims.
6Apply the 60-day limit for the final order. State sanction (RFD-06 and RFD-05) or the rejection route (RFD-08, RFD-09, RFD-06).
7Conclude with the refund payable or the next step, and mention interest under Section 56 if the 60 days are missed.

Quickest way: Form-and-days checklist

When to use it: Use this for MCQs and short factual questions where you must name the form or the time limit.

Write the chain: RFD-01 → 15 days → RFD-02 or RFD-03 → 7 days → provisional 90% → 60 days → RFD-06.
Rejection chain: RFD-08 → RFD-09 in 15 days → order.
Zero-rated supply (not an excluded category) and no prosecution for tax evasion above ₹2,50,000 in the preceding five years: 90% provisional possible. Anything else: no provisional refund.
For numbers, multiply the claim by 90% and subtract it from the admissible amount to get the balance.

Common mistakes in Refund Application, Documents and Processing

Treating the deficiency memo as a chance to correct the same application.
Students assume the officer simply gives time to fix it.
Fix: Under Rule 90 you must file a fresh application after rectification. The 60 days run from the fresh application, and the Section 54(1) limit is measured from the relevant date.
Allowing a 90% provisional refund for inverted duty structure claims.
Students remember '90%' without remembering the condition.
Fix: Rule 91 provisional refund is for claims on zero-rated supplies. Inverted duty claims are not covered. It is also not available to an applicant prosecuted in the preceding five years for tax evasion of more than ₹2,50,000.
Applying 90% to the whole refund including tax paid on exports.
Students mix up the refund type.
Fix: The 90% applies to the refund amount claimed on zero-rated supplies, as computed under Rule 89(4)/(5). Read what the question says is claimed before you compute.
Mixing up RFD-01, RFD-02 and RFD-03.
The codes look similar and students memorise them without a story.
Fix: Remember 01 = application, 02 = acknowledgement (good), 03 = deficiency (bad). Then 04 and 05 are provisional order and payment order, 06 is the final order.
Rejecting a refund claim without a show cause notice in the answer.
Students focus on the outcome and forget natural justice.
Fix: Always include RFD-08, a reply in RFD-09 within 15 days, an opportunity of being heard and then a reasoned order.
Counting the 60 days from the original date after a deficiency memo.
Students ignore the fresh application.
Fix: Count 60 days from the date of the complete, fresh application. The Section 54(1) limit is still measured from the relevant date.

Worked examples

Example 1

Case: Delta Exports Ltd. exports goods without payment of tax. It files RFD-01 for a refund of unutilised ITC of ₹8,40,000 on zero-rated supplies, and the application is acknowledged in RFD-02. It has no prosecution for tax evasion in the preceding five years. After scrutiny the officer finds ₹8,10,000 admissible. Compute the provisional refund and the balance payable on final sanction, and state the time limits.

Show the solution

The claim is for zero-rated supplies and the applicant has no disqualifying prosecution record, so provisional refund under Rule 91 applies.
Provisional refund = 90% × ₹8,40,000 = ₹7,56,000.
It must be sanctioned within 7 days of the acknowledgement (provisional order in RFD-04, payment order in RFD-05).
Final admissible amount is ₹8,10,000. The balance = ₹8,10,000 − ₹7,56,000 = ₹54,000.
The final sanction order in RFD-06 must be passed within 60 days of receiving the complete application. The balance ₹54,000 is paid along with it, with a payment order in RFD-05. The ₹30,000 not admissible (₹8,40,000 − ₹8,10,000) is rejected after RFD-08 and a hearing opportunity.

Answer: Provisional refund is ₹7,56,000 within 7 days of acknowledgement. The balance of ₹54,000 is paid with the final RFD-06 order within 60 days. The inadmissible ₹30,000 can be rejected only after a show cause notice and hearing.

Example 2

Case: Mehta Traders files a refund application in RFD-01 on 10 June. On 20 June the officer issues a deficiency memo because a required export statement is missing. Mehta Traders rectifies the defect and files a fresh application on 5 July, which is found complete. By which date should the final order be passed, and what must Mehta Traders do after the memo?

Show the solution

The deficiency memo in RFD-03 was issued on 20 June, which is within 15 days of 10 June, so it is valid under Rule 90.
The defect cannot be fixed in the same application. On the Rule 90 position, the applicant has to file a fresh application after rectification, which he did on 5 July.
Under that position, the 60 days run from the date of the complete fresh application, which is 5 July.
From 5 July: 26 days remain in July (to 31 July), 31 days in August, giving 57 days. 3 more days take us to 3 September.
Interest under Section 56, if the order is delayed, counts from 60 days after receipt of the complete application, here the complete fresh application. The fresh application must still satisfy the Section 54(1) limit, which is measured from the relevant date, not from 5 July.

Answer: On the Rule 90 position, the final order must be passed by 3 September, which is 60 days from the complete fresh application of 5 July. After the RFD-03 memo, Mehta Traders must file a fresh application after rectifying the defect. It must still be within the Section 54(1) limit measured from the relevant date.

Exam tips

Write the form numbers in every answer. Examiners award marks for RFD-01, RFD-02, RFD-03, RFD-05, RFD-06 and RFD-08/09 correctly named.
In case-scenario MCQs, check the claim type first. Provisional refund is for zero-rated supplies only.
Always note the time limit with the form: 15 days, 7 days, 60 days, 2 years.
For numerical questions, show the 90% working and then the balance, so partial marks are safe.
In written answers, use provision-facts-conclusion form: state the rule, apply it to the dates and amounts, then conclude.

Practice questions from Refunds

Refund Application, Documents and Processing in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Refund Application, Documents and Processing: frequently asked questions

Which form is used to claim a GST refund?

Refund is claimed electronically on the common portal in FORM GST RFD-01 under Rule 89. The supporting documents and declarations are uploaded along with it. The application must be made within two years from the relevant date.

What happens after a deficiency memo in RFD-03?

The officer issues it within 15 days of filing, listing the defects. You cannot correct the same application. You file a fresh application after rectifying them. The 60-day period runs from the fresh filing, and the Section 54(1) limit is measured from the relevant date.

Who gets the 90% provisional refund under Rule 91?

It is for refund claims on zero-rated supplies of goods or services, other than the categories excluded under Section 54(6). 90% of the refund amount claimed, as computed under Rule 89(4)/(5), can be refunded within 7 days of acknowledgement. It is not available for inverted duty structure claims, or to an applicant prosecuted in the preceding five years for tax evasion of more than ₹2,50,000. The balance is paid after the final order.

Within how many days must the officer sanction the refund?

The order must be passed within 60 days of receiving the complete application. If the officer delays, interest is payable under Section 56. If he plans to reject the claim, he must first issue a show cause notice and give a hearing.

Do I need a CA certificate for every refund claim?

No. For claims of ₹2 lakh or less, a self-declaration on unjust enrichment is enough. For claims above ₹2 lakh, a certificate from a chartered accountant or cost accountant is required. Unjust enrichment does not apply to zero-rated exports, among other categories.