NRI Claim 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.
NRIs pay GST when they buy in India: gadgets on a visit, a flat booking, professional fees, hotel stays. The common question is whether being a non-resident means that tax can be refunded at departure or later. In general it cannot. There are a few specific routes, and one important case where the Indian supplier, not the NRI, should not be charging GST at all.
An NRI buying goods or services in India for personal use pays GST as a consumer and has no refund route. The tourist refund in s.15 IGST has not been operationalised. An NRI whose flat booking or long-term insurance policy is cancelled can claim the GST through a temporary registration under Circular 188/20/2022-GST, if the supplier's credit-note window has closed. Separately, where an Indian firm provides services to an NRI located abroad and the s.2(6) IGST export conditions are met, the supply is zero-rated, and the Indian supplier claims the refund, not the NRI.
NRIs as consumers in India
GST is charged on supplies in India regardless of the buyer's residential status. An NRI buying a phone in Mumbai, eating at a restaurant in Kochi or staying at a hotel in Delhi pays GST like anyone else. That tax is final.
What about airport refunds? Section 15 of the IGST Act provides for refund of IGST on goods supplied to a tourist leaving India. A "tourist" under that provision is a person not normally resident in India who enters India for a stay of not more than six months for legitimate non-immigrant purposes. The scheme needs rules and infrastructure, and it has not been operationalised. The rule for airport retail outlets (Rule 95A) was omitted. See the tourist refund scheme under Section 15 IGST.
NRIs and cancelled flat bookings
This is the most common real refund case for NRIs. Many buy under-construction flats in India, paying GST on each instalment. If the project stalls and the booking is cancelled:
- First, the builder should refund the GST. If the builder is still within the time limit to issue a credit note under s.34 (30 November after the end of the financial year of the supply, or the annual return date if earlier), it can adjust its own liability and return the full amount including GST.
- If that window has closed and the builder returns only the base amount, the buyer can claim the GST under s.54(1), as an unregistered person who bore the tax.
The process under Circular 188/20/2022-GST:
| Step | What is needed |
|---|---|
| Temporary registration | On the GST portal using PAN, choosing the same State/UT as the builder |
| Authentication | Aadhaar authentication is part of the process described in the circular |
| Bank account | In the claimant's own name and linked to PAN |
| Application | RFD-01 under "Refund for Unregistered Person" with Statement 8 |
| Supporting documents | Agreement, invoices, payment proof, cancellation letter, proof of amount refunded, supplier's certificate (Rule 89(2)(ka), (kb)) |
| Time limit | Two years from the date of the supplier's cancellation letter |
Because Aadhaar authentication and a PAN-linked bank account are part of the flow, NRIs should check their Aadhaar status and choose an Indian account in their own name before starting. If the builder refunded only part of the money, only the proportionate GST is refundable. A separate application is needed for each builder.
Illustration: an NRI paid ₹60,00,000 plus ₹3,00,000 GST on a flat booking. The builder cancels and returns ₹60,00,000 only, after its credit-note window has closed. The NRI can claim ₹3,00,000 (illustration). If the builder returned ₹30,00,000, the refund would be ₹1,50,000. Our GST refund service can handle temporary registration and filing while you are abroad. See GST refund on flat cancellation for more.
When an Indian supplier should not charge GST to an NRI
If you are an NRI living abroad and you pay an Indian firm for services (for example, a software developer, designer or consultant), the service may qualify as an export of services under s.2(6) of the IGST Act. The conditions are broadly:
- the supplier is located in India,
- the recipient is located outside India,
- the place of supply is outside India,
- payment is received in convertible foreign exchange (or in Indian rupees where permitted by the RBI), and
- the supplier and recipient are not merely establishments of the same person.
The place of supply for most services to a recipient abroad follows the default rule in s.13(2) (location of recipient), but some services follow specific rules, for example services relating to immovable property in India, where the place of supply is where the property is. Those are not exports.
Where it is an export, the supply is zero-rated. The Indian supplier either exports under LUT without charging GST and claims refund of its input credit, or pays IGST and claims that back. Either way, the supplier is the claimant. If an Indian supplier charged you GST on an export, take it up with the supplier. For suppliers, see export refunds under LUT.
NRIs doing business in India
An NRI who carries on a business in India through a registered proprietorship or company is treated like any other registered person: ITC on business purchases, and refunds only in s.54 categories. A person with no fixed place of business in India who makes occasional taxable supplies here registers as a non-resident taxable person, deposits tax in advance and files GSTR-5. Any unused advance deposit can be refunded, but s.54(13) says only after all returns for the registration period are filed.
Illustration: a non-resident taxable person deposits ₹5,00,000 in advance for a trade fair; actual liability is ₹3,20,000. The balance of ₹1,80,000 is refundable after all returns are filed (illustration). Try the GST refund calculator for ITC-based claims.
Need help with an NRI refund?
If your flat booking in India was cancelled and the builder kept the GST, or you run a registered business in India with refundable credit, we can manage the filing, documents and follow-up remotely. Start with our GST refund help.
Key takeaways
- NRIs pay GST as consumers on purchases in India; there is no general refund.
- The s.15 IGST tourist refund is not operational.
- NRIs can claim GST on cancelled flat bookings or terminated long-term insurance policies through temporary registration.
- Services by Indian firms to NRIs abroad may be exports; the supplier, not the NRI, claims the refund.
- Non-resident taxable persons recover unused advance deposit only after filing all returns.
Read next
- Can an individual claim GST refund?
- GST refund with temporary registration
- GST refund on export of services
- Who can claim GST refund?
Disclaimer: Positions stated as on 30 September 2026, based on the CGST Act and Rules as amended, the Finance Act 2026, and the ICAI Handbook on Refunds under GST (January 2026). Verify current notifications before filing.