How to Claim a GST Refund in Delhi? Step-by-Step Guide for Businesses
GST / Aug 17, 2026
Claiming a GST refund in Delhi means filing Form RFD-01 on the GST portal at gst.gov.in, under the correct refund category - exports with IGST paid, exports under LUT/bond, inverted duty structure, excess cash ledger balance, or others under Section 54 of the CGST Act.
The basic flow: log in to gst.gov.in, go to Services - Refunds - Application for Refund, select your refund category and tax period, attach all required documents and statements, submit with DSC or EVC, and track via ARN.
From May 2025, invoice details for export of services, SEZ supplies, and deemed exports must be entered directly online in RFD-01 - the old offline Excel tool is discontinued.
A two-year time limit applies to most categories from the "relevant date" - though what counts as the relevant date differs by refund type. Don't wait.
If your returns are not fully filed, the refund application won't go through. Clear all pending GSTR-1 and GSTR-3B filings first.
Why Delhi Businesses Leave GST Refunds Unclaimed
Across India, billions in GST refunds go unclaimed every year. Not because businesses aren't eligible - but because the process feels complicated, the portal is unforgiving, and one wrong step means the application comes back with a deficiency memo.
Delhi businesses - exporters in Okhla, manufacturers in Naraina and Mayapuri, textile traders in Chandni Chowk, IT service providers in Connaught Place, pharma companies in Bawana - sit on blocked input tax credit for months, sometimes years. Some don't know they can claim it. Others have tried and given up after getting a rejection notice they didn't understand.
The money is legally yours. The process is navigable when you know what category you fall under, what documents you need, and what the officer will check.
This guide covers all of that.
Who Can Claim a GST Refund?
Not every business qualifies automatically. Section 54 of the CGST Act defines the specific situations where a refund can be claimed. Here's who generally qualifies:
| Situation | Refund Category |
|---|---|
| Exported goods with IGST paid | IGST refund on exports with tax payment |
| Exported goods/services under LUT or bond without paying IGST | Refund of accumulated ITC for zero-rated supplies |
| Input tax rate is higher than output tax rate | Inverted Duty Structure - accumulated ITC refund |
| Excess balance sitting in electronic cash ledger | Refund of cash ledger balance |
| GST paid on supplies to SEZ units or developers | Refund of tax paid on SEZ supplies |
| Tax paid on a transaction later cancelled or modified | Refund on account of assessment/amendment/appeal order |
| Excess tax paid by mistake | Refund of excess tax paid |
Each of these categories has a different form statement, different supporting documents, and a different timeline calculation. Filing under the wrong category is one of the top reasons refund applications come back rejected.
What's New in 2025-26 - Changes Delhi Businesses Must Know
1. Invoices must now go directly into RFD-01 online (from May 2025) For export of services, SEZ supplies, and deemed exports - invoice details are entered directly into the online RFD-01 form. The offline Excel upload tool has been discontinued. If you or your consultant is still using the old method, the application will fail.
2. 90% provisional refund now available for Inverted Duty Structure claims As per CGST Instruction 6/2025 (October 2025), businesses claiming refund under inverted duty structure now get 90% of the refund amount provisionally within 7 days of the application being acknowledged - similar to what exporters already had. This is a significant cash flow improvement for manufacturers in Delhi.
3. QRMP taxpayers can claim monthly ITC refunds Following the June 2025 GSTN advisory, businesses filing under the QRMP scheme can now claim monthly ITC in certain refund scenarios instead of waiting for the quarterly cycle.
Documents You Need Before Filing
Getting your paperwork sorted before you open the portal saves a lot of back and forth. The portal has file size limits, format requirements, and will send you a deficiency memo for anything missing or mismatched.
Common across most categories:
- GST registration certificate
- GSTR-1 and GSTR-3B for the relevant period - and they must match your refund claim figures
- Sales and purchase invoices for the refund period
- Electronic credit ledger and cash ledger statements
- Bank account details (pre-validated on the portal)
- Refund calculation workings
For Export Refunds (goods):
- Shipping bills with confirmed customs clearance
- Export invoices matching the shipping bill details
- BRC or FIRC as proof of foreign exchange realisation (where applicable)
- LUT copy if exporting without payment of tax
For Export of Services:
- Export service invoices
- Foreign remittance proof - FIRC or bank realization certificate
- GSTR-1 with services correctly declared as zero-rated exports
- LUT if applicable
For Inverted Duty Structure:
- Input purchase invoices (showing the higher GST rate)
- Output sales invoices (showing the lower GST rate)
- Calculation of refund using the Rule 89(5) formula
- CA certificate for claims above Rs. 2 lakh
For Excess Cash Ledger Balance:
- Electronic cash ledger statement showing the excess
- Return filing confirmation for the relevant period
Step-by-Step: How to File GST Refund Application in Delhi
Step 1 - Confirm your refund category
This is the most important step and the one people rush through. Sit down and clearly identify why the refund is arising. Is it because you exported goods and paid IGST? Because your input rate is higher than your output rate? Because you have money sitting idle in your cash ledger?
The category determines everything that follows - the documents, the statement format, the calculation method, the timeline.
Step 2 - Reconcile your returns and invoices before touching the portal
Before filing, check that your GSTR-1, GSTR-3B, books of accounts, and invoices all tell the same story for the refund period. A mismatch between what's in your returns and what you're claiming in RFD-01 is the most common reason applications come back with a deficiency memo or get rejected outright.
For export refunds, shipping bill data in the ICEGATE system must also match your GST return data. Even small differences in invoice values, dates, or port details create problems.
Step 3 - Log in to the GST portal and go to Refunds
At gst.gov.in, log in with your credentials, go to Services, select Refunds, and click Application for Refund (RFD-01).
Step 4 - Select refund type and tax period
Choose the correct refund category from the dropdown. Select the tax period the claim relates to. The portal will load the appropriate form and statement fields based on your selection.
Step 5 - Fill in invoice and refund details
For most categories, you enter invoice-level details directly in the form. For export of services, SEZ supplies, and deemed exports - as of May 2025 - all invoice data is entered online, not uploaded via Excel. Enter figures carefully. Cross-check against your GSTR-1 before submitting.
Step 6 - Upload documents
Upload supporting documents in the required format - PDF or JPEG, generally under 5 MB each. Label and organise them clearly. Unclear or mismatched uploads lead to deficiency memos.
Step 7 - Submit with DSC or EVC
Companies and LLPs must submit using a Digital Signature Certificate. Proprietors, partnership firms, and others can use EVC via Aadhaar OTP or net banking.
Step 8 - Note your ARN and track status
On submission, you get an Application Reference Number. Use it to track your application under Services - Track Application Status. Watch for any communication from the portal - acknowledgment, deficiency memo, or notice.
Timeline - What Happens After You File
| Stage | Form | Typical Timeframe |
|---|---|---|
| Acknowledgment of complete application | RFD-02 | Within 15 days of filing |
| Deficiency communicated (if documents are incomplete) | RFD-03 | Within 15 days of filing |
| Provisional refund (for export and IDS claims) | RFD-04 | Within 7 days of acknowledgment |
| Final sanction order | RFD-06 | Within 60 days of application |
| Payment order | RFD-05 | After RFD-06 sanction |
| Rejection notice (if applicable) | RFD-08 | Before final order |
| Reply to rejection notice | RFD-09 | Within the specified period |
If the officer proposes to reject your claim - fully or partially - you'll get RFD-08 first. You have to reply via RFD-09 within the time given. Don't ignore it. A missed RFD-09 response can result in your claim being rejected entirely, even if it was otherwise valid.
The Inverted Duty Structure Refund - How the Calculation Works
This one is specifically worth explaining because manufacturers in Delhi - textiles, footwear, corrugated boxes, pharma, steel utensils - get stuck here often.
Inverted duty structure means you're buying inputs at a higher GST rate than the GST rate on what you sell. So ITC keeps accumulating and never gets used.
The refund amount is calculated using the formula under Rule 89(5):
Refund = (Turnover of inverted rated supply / Adjusted total turnover) x Net ITC - Tax payable on such inverted rated supply
Where Net ITC means input tax credit availed on inputs during the relevant period (excluding ITC on capital goods and input services).
A CA certificate is mandatory for claims above Rs. 2 lakh. The 90% provisional refund under CGST Instruction 6/2025 means most of your money comes back within 7 days of acknowledgment now - the remaining 10% on final sanction.
Common Reasons GST Refund Applications Get Rejected in Delhi
Wrong category selected. Exporters who paid IGST filing under the LUT/bond category, or vice versa - this alone leads to rejection.
Return mismatch. The figures in your RFD-01 don't match what was declared in GSTR-1 or GSTR-3B for the same period.
Pending GSTR filings. The portal blocks refund applications if returns are not fully filed. One pending GSTR-3B can hold up the entire claim.
Documents don't align. Invoice values, dates, and port details between GST records and ICEGATE shipping data must match for export refunds.
Missing CA certificate. Claims above Rs. 2 lakh for certain categories require a CA or cost accountant certificate. Submitting without it leads to deficiency.
Not responding to RFD-08. Many businesses miss the rejection notice window and lose the refund permanently.
Claiming beyond the two-year limit. The time limit starts from a specific "relevant date" that varies by refund category. Missing this window means the claim is legally time-barred.
GST Refund - Two Year Limitation Period
This is not a deadline to take lightly. Once the two-year window closes for a particular refund claim, it's gone. The relevant date varies:
- Exports of goods: date on which the export manifest was filed with customs
- Exports of services: date of receipt of foreign exchange payment
- Inverted duty structure: end of the financial year in which the credit accumulated
- Excess cash ledger balance: date of payment that created the excess
Don't calculate this yourself without checking the specific rule for your category. The consequences of getting it wrong are permanent.
Frequently Asked Questions
Which businesses in Delhi are eligible for GST refund?
Exporters, manufacturers with inverted duty structure, service exporters, businesses with excess cash ledger balance, and businesses that have paid GST on supplies to SEZ units. Eligibility depends on the facts of each case.
How long does a GST refund take in Delhi?
For export claims with a complete application, a provisional 90% refund should arrive within 7 days of acknowledgment. Final settlement within 60 days. Delays happen when documents are incomplete or returns have mismatches.
What is Form RFD-01?
It is the primary electronic form for filing GST refund applications under Rule 89 of the CGST Rules. Most refund categories use RFD-01.
Can I file a GST refund application myself?
You can, but errors in category selection, calculation, or documentation result in deficiency memos, notices, or rejections. For claims above Rs. 2 lakh, many categories require a CA certificate anyway. Professional support significantly reduces rejection risk.
What is an RFD-03 deficiency memo?
It's a notice from the GST officer saying your application has gaps - missing documents, mismatched figures, or incorrect category. You don't correct the same application. You fix the issues and file a fresh RFD-01. The original application does not get processed.
What happens if my GST refund is rejected?
You receive RFD-08 before rejection. Reply via RFD-09. If the final rejection order (RFD-06) still goes against you, you can file an appeal before the Appellate Authority.
Is there a GST refund for Delhi businesses that exported but did not realise foreign exchange?
For goods exports, foreign exchange realisation is not a condition for refund. For service exports, realisation conditions apply in most cases - though there are specific exceptions.
What is the 90% provisional refund announced in 2025?
CGST Instruction 6/2025 extended the 90% provisional refund to Inverted Duty Structure claimants (previously it was only for exporters). This means IDS businesses get 90% of their sanctioned refund amount within 7 days of acknowledgment, with the remaining 10% released after final scrutiny.
Need Help with GST Refund in Delhi?
Stuck credit, delayed refund, rejected application, deficiency memo you don't know how to answer - these are problems we handle every day.
Our team reviews your refund category, reconciles your returns and invoices, prepares the RFD-01 application with correct documentation, and follows through until the refund is in your account.
Visit our GST Refund service page:
📧 mail@legalntaxindia.com 📞 +91-9810957163
Legal-N-Tax Advisory LLP 115, Lower Ground Floor, Sector-12A Rd, Block A, Sector 12 Dwarka, Dwarka, New Delhi, Delhi - 110078
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