Claim a GST Refund explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Deemed exports — supplies to EOUs, advance authorisation and EPCG holders under Section 147 — are taxed and then refunded. Either the supplier or the recipient (not both) claims the refund in Form GST RFD-01 within two years of the relevant date, with declarations that the other party has not claimed it and ITC has not been availed.
Overview
Certain domestic supplies are treated as exports even though goods stay in India — these are "deemed exports". Because they promote exports, the tax paid on them is refundable. Unlike zero-rated exports, deemed exports are not made under LUT; tax is paid first and then claimed back.
When It Is Required & Legal Basis
Section 147 of the CGST Act, 2017 empowers the government to notify deemed exports. The notified categories include supplies against advance authorisation, supplies of capital goods against EPCG authorisation, supplies to an EOU/EHTP/STP/BTP unit, and supplies of gold by a bank/PSU against advance authorisation. Rule 89 of the CGST Rules, 2017 governs the refund; the third proviso to Rule 89(1) lets either supplier or recipient claim.
Step-by-Step Process
- Confirm the category. Ensure the supply falls within a notified deemed-export category and tax has been paid on it.
- Decide the claimant. Agree whether the supplier or the recipient will claim; the other issues a declaration/undertaking.
- Gather declarations. Obtain the recipient's endorsement that it has not availed ITC and will not claim the refund (if supplier claims).
- Open RFD-01. Go to Services → Refunds → Application for Refund → "Refund on account of deemed exports".
- Fill Statement 5B and upload. Enter invoice-wise deemed export details and attach declarations and authorisations.
- Submit and track. File with DSC/EVC; the officer processes RFD-02/06.
Forms, Attachments & Fees
| Form / Document | Purpose |
|---|---|
| GST RFD-01 (deemed exports) | Refund application |
| Statement 5B | Invoice-wise deemed export details |
| Recipient's undertaking | No ITC availed / no refund claimed by the other party |
| Advance authorisation / EPCG / EOU proof | Eligibility evidence |
| GST RFD-06 | Final sanction order |
No government fee. A CA/CMA certificate is required where the claim exceeds ₹2 lakh.
Timeline & Due Dates
Claim within two years from the relevant date (generally the date of furnishing the return for the period of the deemed export supplies). The officer acknowledges within 15 days and sanctions within 60 days; interest at 6% applies for delay beyond 60 days.
Penalty for Delay / Non-compliance
No specific penalty, but a claim filed beyond two years lapses. If both supplier and recipient claim the same refund, the excess is recovered with interest at 18% under Section 50, hence the strict declaration requirement.
Practical Tips
- Fix in writing whether the supplier or recipient claims — duplicate claims are the biggest risk.
- Where the supplier claims, the recipient must not take ITC on those invoices; document this clearly.
- Attach the underlying authorisation (advance authorisation/EPCG/EOU letter) to avoid deficiency memos.
- Remember there is no LUT for deemed exports — tax must be paid first.
Related Services & Guides
Key Facts About Claim a GST Refund
- Applies in: All states across India, under the relevant central law.
- Mode: Mostly online via the official government portal.
- Typical timeline: Ranges from a few days to a few weeks depending on the case.
- Non-compliance: May attract penalties, interest or late fees.
- Expert help: TaxClue completes the entire process end to end for you.
What are deemed exports under GST?
Deemed exports are supplies notified under Section 147 where goods do not leave India but are treated as exports — such as supplies against advance authorisation, to EPCG holders, to export-oriented units (EOUs), and of gold by a bank/PSU against advance authorisation.
Who can claim the refund on deemed exports?
Either the supplier of the deemed export goods or the recipient can claim the refund of tax paid, but only one of them — the other must give a declaration/undertaking not to claim it.
Over 90% of compliance penalties in India arise from missed due dates — timely handling can save businesses thousands of rupees each year.
Claim a GST Refund: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.