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GST refund time limit

GST Refund Time Limit (Complete Detail)

The GST Council has specified a period of time during which GST can be refunded.

Are you curious to know about the GST refund time limit?

Then, at the end of this article, you will have all your questions and doubts cleared up.

Let’s get started!

The time limit for GST refund is 60 days from the date of receipt of the application, complete in all respects.

However, in case of non-settlement of refund within 60 days, interest at the rate of 6% will be charged in accordance with section 56 of the CGST/TSGST Act.

Under section 54 of the CGST/TSGST Act, a provisional refund of up to 90% of the amount claimed may be granted in respect of zero-rated supplies made by certain categories of registered persons if the provisional refund is refundable within seven days of the date of acknowledgment of the refund claim.

The time limit set for claiming a refund is 2 years from the relevant date. However, the relevant date is different in every case. Here is the list of relevant dates for some cases –

Reason for claiming GST RefundRelevant Date
Excess payment of GSTDate of payment
Export or deemed export of goods or servicesDate of despatch/loading/passing the frontier
ITC accumulates as output is tax exempt or nil-ratedLast date of financial year to which the credit belongs
Finalisation of provisional assessmentDate on which tax is adjusted

Can we claim GST after 2 years?

No, you can not claim GST after 2 years, as the time limit for claiming the refund is 2 years from the date of payment.

It is important to take note that a valid return in FORM GSTR-3B has been filed for the last tax period before the one in which the refund application is being filed.

What if GST returns have not been filed for 3 years?

Whenever the GST officer does not receive the GST returns for three consecutive tax periods, he or she has the authority to cancel the GST registration of the composition taxable person.

What if GST returns are not filed for 1 year?

In case, the GST return is not filed for 1 year, then late fees will apply for every day of default that occurs. 

However, in case of any due tax, interest will apply at the rate of 18% per annum on the tax liability.

How old ITC can be claimed?

Two dates are specified as a time limit to claim ITC on invoices or debit notes of a financial year. In the first instance, it should be the 30th of November of the following year, or in the second instance, the date of filing the annual returns.

Follow these steps to declare and file an ITC claim under Section 18 (1) (a) in Form ITC-01:

  1. Login and go to the ITC-01 page.
  2. Declare the claim of input tax credit under sub-section (1) of section 18.
  3. Now, Preview GST ITC-01.
  4. After this, submit GST ITC-01 to freeze data.
  5. Lastly, file GST ITC-01 with DSC/ EVC.

What is the Rule 37 in GST?

Rule 37 stated that, within 180 days of issuing the invoice, all registered persons must reverse the ITC claimed on inward supplies for which they have failed to pay consideration to the supplier. 

FAQ: GST refund time limit

Can we claim GST after 6 months?

Yes, GST can be claimed after 6 months.

Due to nonpayment to his supplier, you must pay back the Input Tax Credit to Customs after 6 months.

Do we get full GST refund?

Yes, If GST is included in the price of things you use for your business, you can claim a credit. You must be registered for GST, in order to claim GST credits in your BAS.

Wrapping Up

This was all about the GST refund time limit. We hope all your queries are resolved. Still, if you have any doubts, please feel free to comment in the comments section below. 

Let’s wrap it up.

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