Eligibility for Refund

• Excess cash balance in electronic cash ledger
  
• Accumulated ITC due to zero-rated supplies without payment of tax
  
• Refund of IGST paid on exports of goods or services
  
• Refund of tax on account of inverted duty structure
  
• Refunds due to appeal orders, provisional assessments, or excess payments
  

Application Procedure

• File Form RFD-01 on GST portal with supporting documents
  
• Choose refund reason, period, and amount from drop-down menu
  
• Upload invoice details, shipping bills (for exports), and bank certificates
  
• Submit ARN and track refund progress online
  
• Ensure prior filing of GSTR-1 and GSTR-3B for selected period
  

Timelines and Acknowledgment

• Refund to be sanctioned within 60 days from date of application
  
• Provisional refund of 90% granted for zero-rated supply within 7 days
  
• RFD-02 (Acknowledgment) issued after successful verification
  
• Refund is credited directly to registered bank account
  
• Delay in processing invites interest payable to the applicant
  

Refund for Exporters

• Exporters can claim refund of IGST paid or unutilized ITC
  
• Shipping bill is treated as refund application for IGST route
  
• Refund of ITC requires matching with inward and outward returns
  
• Letter of Undertaking (LUT) must be filed to avail tax-free exports
  
• BRC/FIRC proof is required for service exports
  

Common Errors and Rejections

• Incomplete documentation or mismatch in returns
  
• Non-submission of LUT for zero-rated claims
  
• Filing for incorrect periods or amounts
  
• Duplicate claims or multiple claims on same invoice
  
• Rejection can be appealed or corrected via fresh application