How to check your GST refund status and know common reasons for delays

If your claim is in order, refund amount will be processed and credited directly to your bank account

Checking the status of Goods and Services Tax (GST) refund is crucial for businesses and individuals who are eligible such money due to various reasons. Understanding the eligibility criteria and common delays can streamline this experience.

 

When can a GST refund be claimed?

 

Refunds can be claimed if there is an unused balance in the electronic cash ledger due to overpayment.

 

GST paid on export of goods/services.

 

That paid on the supply of goods/services to a Special Economic Zone.

 

Refunds can be claimed on inputs used for the supply of nil-rated or exempt goods and services.

 

 

Any refund resulting from court orders, decrees, or judgments is eligible.

 

Diplomats, embassies, and certain international organisations (e.g., the United Nations) can claim refunds on the GST paid.

 

Refunds can be claimed if GST was paid in excess due to errors during the filing of returns.

 

"Once your application is submitted, the tax authorities will review your claim. If everything is in order, the refund amount will be processed and credited directly to your bank account. The processing time may vary but following the correct procedures can significantly reduce delays," said Sujit Sudhakar Bangar Founder at TaxBuddy.com

 

How to check your GST refund status

 

Log in to the GST portal.

 

Go to the 'track application status' option under the 'services' tab.

 

Enter the ARN generated during the refund application process and click on 'search.'

 

The system will display the current status of your refund application.

 

The status could range from 'application submitted' and 'pending for verification' to 'refund sanctioned' or 'refund disbursed.'

 

If any issues arise, you can address them promptly by contacting the tax authorities or rectifying discrepancies in your application.

 

Common reasons for refund delays

 

One major cause of delay is incomplete documentation. Missing or incorrect information, such as mismatched invoices or inadequate export declarations, can slow down the process.

 

Another common issue is discrepancies between the details in your GST returns (e.g., GSTR-1, GSTR-3B) and the refund claim.

 

Additionally, failure to respond to queries or notices issued by the GST authorities can lead to delays or even rejection of the refund application.