TL;DR for CAs
- Common refunds: exports, inverted duty, excess balance.
- Documentation and RFD forms must match books.
- Deficiency memos delay cash flow—respond fast.
What it is
GST law allows refund of unutilised ITC or tax paid in prescribed situations such as zero-rated supplies and inverted rate structures.
Who it applies to
Exporters, inverted duty manufacturers, and taxpayers with excess cash ledger balances.
Key provisions
- Section 54 and refund rules
- Provisional refunds for exports
- Unjust enrichment considerations
Practical tips for CAs
Keep shipping bills, FIRC/BRC, and tax invoices indexed. Track SCN/deficiency timelines.
Common mistakes
Wrong refund category; mismatched turnover; incomplete CA certificates where required.
For general guidance only. Verify with the latest Finance Act, GST notifications, and ICAI guidance notes before advising clients.