GST refunds: the RFD-01 process
A GST refund puts back tax or credit you were not meant to bear — an export balance, an inverted-duty build-up, a cash-ledger balance or tax paid by mistake. This guide covers what you can claim, the two-year time limit, the RFD-01 to RFD-06 workflow, the 90% provisional refund for exporters and the interest you are owed on a delay. GST is one national framework, so the process is the same in every state. Checked on October 28, 2026.
What you can claim
- Zero-rated without tax (LUT): unutilised ITC on exports or SEZ supplies made under a letter of undertaking.
- Zero-rated with tax: the IGST paid on exports or SEZ supplies.
- Inverted duty structure: unutilised ITC where inputs are taxed at a higher rate than the output supply.
- Electronic cash ledger balance: money deposited but not used against a liability.
- Excess or mistaken tax: tax paid in excess, or under the wrong head, or on an advance for a supply that did not happen.
Time limit
A refund claim must be filed within two years of the relevant date (section 54). The relevant date is defined per category — the shipping-bill date for export of goods, the payment date for services, the end of the financial year for an inverted-duty claim, and so on. A balance in the electronic cash ledger can generally be claimed without the two-year restriction, since it is your own money.
The RFD workflow
| Form | Stage |
|---|---|
| RFD-01 | Refund application filed on the portal; an ARN is generated. |
| RFD-02 | Acknowledgement that the application is complete. |
| RFD-03 | Deficiency memo if something is missing — you re-file a fresh RFD-01. |
| RFD-04 | Provisional refund order — up to 90% for zero-rated supplies. |
| RFD-06 | Final sanction (or rejection) order. |
| RFD-05 | Payment order; the amount is credited to your bank account. |
The whole process is electronic on the GST portal; the refund is paid to the bank account validated in your registration.
Timeline and interest
The officer is to decide a complete application within 60 days. For zero-rated supplies, up to 90% can be released provisionally soon after acknowledgement, with the balance after scrutiny. If the refund is not paid within 60 days, interest at 6% a year is due under section 56 from the end of that period; a higher 9% rate applies where the refund follows a delayed appeal or further proceeding.
Getting a clean refund the first time
- Validate the bank account in your registration before filing.
- Match the claim to filed GSTR-1, GSTR-3B and the ITC in GSTR-2B.
- Keep exports, LUT, shipping bills and the ITC ledger ready as evidence.
- File within two years of the relevant date, and respond fast to any RFD-03 deficiency memo.
Related
- GSTR-2B reconciliation — a clean ITC trail is what an inverted-duty or export refund rests on.
- GST notices — RFD-08 is the show-cause notice proposing to reject a refund.
- GST returns guide
Frequently asked questions
What GST amounts can I claim as a refund?
The common cases are: unutilised input tax credit from zero-rated supplies (exports or supplies to SEZ) made without paying tax under a LUT; tax paid on zero-rated supplies made with payment; unutilised ITC from an inverted duty structure (inputs taxed higher than outputs); a balance lying in the electronic cash ledger; and tax paid in excess or by mistake. Each has its own relevant date and documents.
What is the time limit to claim a GST refund?
Two years from the relevant date, under section 54 of the CGST Act. The relevant date depends on the type — for example the shipping-bill date for export of goods, or the end of the financial year for an inverted-duty claim. A balance in the electronic cash ledger can generally be claimed without this two-year bar.
How is a GST refund filed and processed?
You file form RFD-01 on the GST portal and receive an ARN. The officer issues RFD-02 as acknowledgement, or RFD-03 as a deficiency memo if something is missing. For zero-rated supplies, 90% can be sanctioned provisionally in RFD-04. The final order is RFD-06, and payment is authorised in RFD-05 and credited to your bank account.
How long does a GST refund take?
The officer is to process a complete application within 60 days. For zero-rated supplies, a 90% provisional refund is meant to be released quickly (within about seven days of acknowledgement) with the balance after scrutiny. If the refund is delayed beyond 60 days, interest is payable.
Is interest paid if the refund is delayed?
Yes. Under section 56, interest at 6% a year is payable if the refund is not issued within 60 days of a complete application. A higher 9% rate applies where the refund arises from an order in appeal or further proceedings that is delayed. Interest runs from the end of the 60-day period until the refund is paid.
More GST guides
GSTR-9: GST Annual Return
Who must file the annual return, the ₹2 crore threshold, the 31 December due date and the turnover-based late fee.
Read guideGSTR-9C: GST Reconciliation Statement
The ₹5 crore threshold, what reconciles to what, and why GSTR-9C is now self-certified rather than audited by a CA or CMA.
Read guideGST Notices: Types and How to Respond
GSTR-3A, REG-03, ASMT-10, DRC-01A and DRC-01 — what each notice means, where to reply on the portal, and the section 73/74 time limits.
Read guideCancel, Revoke or Amend GST Registration
Amend details with REG-14, cancel with REG-16, file the GSTR-10 final return, and revoke an officer-cancelled GSTIN with REG-21.
Read guideSee also the GSTR-1, 3B, 2B & 9 returns guide and the Indian GST basics hub.
Sources
GST is one national framework — these rules are the same in every state and union territory. Every figure on this page is taken from the official sources below; GST rules change often, so verify the current position before you file. This is general information, not tax advice.
- CBIC-GST — cbic-gst.gov.in (Acts, Rules, notifications, circulars)The CGST Act 2017 and CGST Rules 2017 — sections 44 (annual return), 54 & 56 (refunds and interest), 29 & 30 (cancellation and revocation), 73/74/74A (demands) — and the notifications that set thresholds, due dates and late fees.
- CBIC — master circular on GST refunds (Circular 125/44/2019-GST and later)The fully electronic RFD-01 refund process, the RFD-02/03/04/05/06 workflow, the 90% provisional refund for zero-rated supplies and the 60-day processing window.
- GST Portal — gst.gov.inThe official GSTN portal where every return, refund application (RFD-01), registration change (REG forms) and notice reply is filed and tracked.
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