Clearing the Confusion Around Refund Claims Under GST for Tax and ITC

Goods and Services Tax (GST) has brought about significant changes in the way taxes are levied and collected in India. However, businesses often face challenges while claiming refunds of the GST paid on their inputs or exports. In this article, we will discuss refund claims under GST for tax and input tax credit (ITC) and clear the confusion around the process.

What is a Refund Claim under GST?

A refund claim under GST is a request made by a taxpayer to the tax authorities for a refund of the GST paid on their inputs or exports. Refunds can be claimed for any excess tax paid due to error or omission, inverted tax structure, or exports.

Types of Refund Claims Under GST

There are two types of refund claims under GST:

  1. Refund of Tax: This refund claim is filed by taxpayers when there is an excess amount of tax paid on the output supply. The excess tax may be due to an error or omission in the return filed, or when the output tax is more than the tax liability.
  2. Refund of Input Tax Credit (ITC): This refund claim is filed when there is an excess amount of ITC accumulated in the electronic credit ledger due to an inverted tax structure, where the tax rate on input goods or services is higher than the tax rate on output supplies.

How to File a Refund Claim under GST?

To file a refund claim under GST, taxpayers need to follow the below-mentioned steps:

  1. File GST returns: Ensure that all the GST returns are filed accurately and on time.
  2. File refund claim: After filing the GST returns, the taxpayer can file a refund claim for excess tax paid or accumulated ITC.
  3. Submit supporting documents: Supporting documents like invoices, debit/credit notes, and export documents must be submitted along with the refund claim.
  4. Wait for processing: After submitting the refund claim, taxpayers need to wait for the authorities to process the claim.
  5. Receive refund: Once the refund claim is approved, the refund amount will be credited to the taxpayer's bank account.


In conclusion, claiming refunds of the GST paid on inputs or exports can be a complex process. However, understanding the process and types of refund claims can help taxpayers ensure that their refund claims are processed efficiently and effectively.

By following the steps mentioned above, businesses can file their refund claims with ease and receive their refunds in a timely manner. If you have any questions or concerns regarding refund claims under GST for tax and ITC, it is recommended to consult a qualified tax professional.