GST Refund
Definition
A claim to recover GST where credit or cash has accumulated that cannot be used — commonly on exports, supplies to SEZs, or an inverted duty structure. Refund claims are filed online and are subject to verification and time limits.
Related Terms in India GST
Inverted Duty Structure
A situation where the GST rate on a business's inputs is higher than the rate on its finished output, causing input tax credit to pile up. The rules allow a refund of the accumulated credit arising from such an inverted structure, subject to conditions.
Provisional ITC
Input tax credit a buyer claimed before the corresponding invoice was reflected in their auto-drafted statement. Rule changes have progressively tightened this, so credit is now largely restricted to invoices actually appearing in GSTR-2B.
Blocked Credit (Section 17(5))
Categories of input tax credit that GST law specifically disallows even when used for business, such as credit on certain motor vehicles, personal consumption, and some works-contract and construction inputs. Businesses must identify and exclude these from their claims.
Anti-Profiteering (GST)
A GST provision requiring businesses to pass on the benefit of a rate cut or additional input tax credit to customers through lower prices, rather than keeping it as extra margin. Compliance is monitored by the designated authority.
Stop memorising terms — let HelloBooks do the work
AI-assisted bookkeeping that handles invoicing, GST, reconciliations, and reports automatically. Free to start.