GST refunds: the two-year limit, the relevant date and the 60-day processing rule

Last updated 27 Oct 2026 · India

Short answer. Under section 54(1) of the CGST Act, a refund claim is filed in Form RFD-01 on the GST portal before the expiry of two years from the relevant date. The relevant date depends on the case: for export of goods it is broadly the date the ship or aircraft leaves India, for export of services the date of receipt of payment (or invoice date if paid in advance), and for inverted duty structure the due date of the return for the period in which the claim arises. The officer must pass the order within 60 days of receiving a complete application (section 54(7)); for zero-rated supplies, 90% can be refunded provisionally (section 54(6)). If the refund is not paid within 60 days, interest is due under section 56. No refund is paid if the amount is below ₹1,000.

Step by step

Identify the refund type (export with or without payment of tax, inverted duty, excess cash, etc.).
Fix the relevant date and mark the two-year deadline.
Collect invoices, shipping bills or FIRC/BRC, and the statements the form needs.
File RFD-01 and note the ARN.
Reply to any deficiency memo (RFD-03) quickly; a fresh application restarts the clock.

Common mistakes

Counting from the invoice date for exported goods instead of the shipping date.
Clubbing periods in a way that pushes older invoices past two years.
Ignoring the deficiency memo.

Not tax advice. This is a free explainer of the CGST Act and Rules; check the latest notifications on CBIC or ask your tax adviser.

Frequently asked questions

What is the time limit for a GST refund?

Two years from the relevant date, under section 54(1).

How long does the officer have to decide a refund?

60 days from receipt of a complete application; interest is due under section 56 if paid late.

Is there a minimum refund amount?

Yes, no refund is paid if the amount is less than ₹1,000.

Official sources

Not tax or legal advice. This is a free explainer of public rules; deadlines and rules can change by notification, so confirm on the official portal or with your CA before you file. Last checked 27 Oct 2026.

Get free deadline reminders. Free: one short email every Wednesday listing the GST, TDS and ITR due dates coming up. Unsubscribe anytime.

Subscribe free on Gumroad (email only, no payment).

Or put every date in your calendar now: free India tax deadline calendar (Google Calendar, Outlook, phone; .ics + spreadsheet).

If you want a ready-made tool

Keep GST, TDS, ROC and payroll dates in one sheet so nothing slips: SME Compliance Calendar, Oct 2026–Mar 2027 (paid).

← All guides

Unadhi Guides are free, independent explainers. Not an official government publication. We correct errors as soon as we find them: write to mininglife7@gmail.com.

Partner programme opening soon: join the free waitlist. Planned terms are 50% of each referred sale (75% once you have 5+ paying customers), single level, paid through Gumroad only from revenue received.