GST Refund Claim Issues

GST has surely been a welcome change bringing much-needed structure to the taxation system in India.  However, there have been many glitches and implementation issues for GST Return and compliances. One of the issues for businesses is the process of GST refund claim. A lot of businesses were already facing liquidity issues, piled on top of that the issues with tax refund under GST procedure contributed to distress among business owners.

GST refund Claim Simplified

The government noticed the distress among business owners and simplified the refund procedure to help with easier and faster refunds. According to the new provisions set by the ministry, that the GSTR-2A will be sufficient for claiming the refund against providing the appropriate invoices for all purchases during a particular month.

The GSTR-2A is basically a form which auto-generates the data based on the sales the supplier uploads according to GSTR1. The new notification from the government declares that GSTR2A will serve as an evidence for claiming Input Tax Credit or ITC.

We’re listing the provisions surrounding the GSTR-2A and refund claim procedure.

  • In cases where the GSTR2 doesn’t have all the details for invoices against which input tax is being credited, the government could ask the business owner to produce physical copies of respective invoices.
  • Contrary to this, if GSTR2 has generated all details for ITC, the government cannot ask for the physical copies of the invoices.

In the previous GST refund fortnights, government officials have gathered to speed up the process of GST refund settlement. The government also asserts that they have successfully cleared the claims of exporters reaching the values of Rs. 54,000 crore as of July 2018.

The Simplified Procedure

Thus, it is clear to see that the government is looking at simplifying procedures for business owners. This much-needed change will come as a relief to all business owners disgruntled with the earlier process.

Here we list down the new and simplified procedure for GST refund claim.

  • Frame an application in GST RFD 01 and address it to  Proper Officer
  • Get the acknowledgment done in the form GST RFD-02.
  • Proper Officer will contact you about the deficiencies in the refund claim procedure in the form GSTR RFD-03
  • The officer will sanction the claim after  performing appropriate checks and scrutinizing the claim with the GSTR RFD-04
  • In case the claim is rejected because of any reasons, the rejection order will be issued with form GSTR RFD-05
  • GSTR RFD-06 is just an order for completed adjustment of claimed refund.

Documents for GST refund claim

Listed below is a checklist of the documents required for refund claim procedure.

  •  Principle document for each refund claim is the respective invoices
  • If you are claiming a refund on the export of services excluding the statement of invoices you will need to produce bank realization certificates which verify receipt of payment in overseas currency.
  • In the case that a supplier raises a claim to the Special Economic Zones (SEZ) the authorized officer will make an endorsement which verifies the receipt of said commodities, this endorsement has to be submitted with the documents.
  • SEZ unit has to furnish a statement  which ensures the declaration that ITC has not been availed for the tax paid by the supplier


The filing for GST refund claim is thus a comprehensive task and needs to be done carefully. For the refund process, you can log on to the GST Portal from the government.

This portal, however, could be very confusing to do by yourself if you do not understand the process. Well today, you are in luck because we are offering a special offer for the free trial of our GST software, Taxraahi with step-by-step assistance every step of the way. Log on to claim your GST refund now. Taxraahi also has provisions for Income Tax Return (ITR) filing. Hurry on ! and do your taxes the smart way.