Input Tax Credit (ITC) Refund Claims
GST refund processing for Exporters (Zero-Rated Supplies under LUT/IGST payment) and Manufacturers facing Inverted Duty Structure (higher input tax rate than output tax rate) under Section 54 of the CGST Act, 2017.
1. Statutory GST Refund Categories (Section 54)
Zero-Rated Exports (LUT / IGST Payment)
Under Section 16 of IGST Act, exporters of goods or services under Letter of Undertaking (LUT) without tax payment can claim 100% refund of unutilized accumulated ITC.
Inverted Duty Structure Refund
Under Section 54(3)(ii), manufacturers whose raw material GST rate (e.g. 18%) is higher than finished goods GST rate (e.g. 5%) can claim refund of accumulated unutilized credit.
2. Mandatory Document Checklist
Required Documents for Form RFD-01
- Shipping Bills & Export Invoices (With Customs ICEGATE match)
- Bank Realization Certificates (BRC / FIRC) for Service Exports
- GSTR-2B Statement & Purchase Invoices
- CA Annexure-A & Certification u/s 54(6)
3. Step-by-Step Refund Application Process
Step 1: Formula Calculation & Form RFD-01 Upload
Calculating maximum refund amount as per Rule 89(4)/89(5) formula and submitting Form GST RFD-01 on portal.
Step 2: RFD-02 Acknowledgement & RFD-06 Sanction Order
GST Officer issues RFD-02 Acknowledgement within 15 days and final RFD-06 Sanction Order for direct bank transfer.
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