GST Refund Time Limit 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.
Most people know that a taxpayer has two years to claim a GST refund. Fewer know that the department also works against fixed deadlines. The GST refund time limit for the department is 60 days to decide a complete application, with shorter clocks for acknowledgement and provisional refund inside it. Here is each deadline, where it comes from, and what you can do when it is missed.
The officer must acknowledge the claim in RFD-02 or raise a deficiency memo in RFD-03 within 15 days of filing (Rule 90). For zero-rated claims, the provisional refund order in RFD-04 is due within 7 days of acknowledgement (Rule 91(2)). The final order in RFD-06 must issue within 60 days of receipt of a complete application (s.54(7)). If the money is not refunded within those 60 days, interest at 6% p.a. runs until it reaches your bank (s.56).
The department's deadlines at a glance
| Stage | Deadline for the officer | Source | Form |
|---|---|---|---|
| Scrutiny for completeness | 15 days from filing | Rule 90(2), (3) | RFD-02 or RFD-03 |
| Refund from cash ledger | Acknowledgement made available on filing | Rule 90(1) | RFD-02 |
| Provisional refund (zero-rated supplies) | 7 days from acknowledgement | Rule 91(2) | RFD-04 |
| Reply window given to you after a notice | 15 days from receipt of RFD-08 | Rule 92(3) | RFD-09 |
| Final order | 60 days from receipt of a complete application | s.54(7) | RFD-06 |
| Payment | Within the same 60 days, or interest runs | s.56 | RFD-05 |
The 60 days are not counted from the date the officer decides you are right. Rule 90(2) says the RFD-02 acknowledgement indicates the date of filing of the claim, and the s.54(7) period is counted from that date. So a clean application starts the clock on the day you file it.
If you want to see how the two-year window on your side interacts with these clocks, our GST refund time limit service reviews both together before a claim goes in.
The 15-day clock: acknowledgement or deficiency memo
Within 15 days of filing, the officer must scrutinise the RFD-01 for completeness against Rule 89(2), (3) and (4). Only two outcomes are possible: an RFD-02 acknowledgement, or an RFD-03 deficiency memo listing what is missing.
Three practical points follow from the rules and the CBIC guidance summarised in the ICAI Handbook:
- Once an acknowledgement has issued, no deficiency memo can follow for that application, on any ground. Later doubts must go through a show cause notice in RFD-08.
- A deficiency memo ends that application. You must file a fresh RFD-01 with a new ARN. The amount debited from your ledger is re-credited automatically.
- Your two-year limit is protected. The proviso to Rule 90(3) excludes the time from filing the first claim to the date of the RFD-03 from the two-year period for the fresh claim.
The fresh application should not attract a second deficiency memo unless the original defects remain uncorrected or a new substantive deficiency is noticed.
The 7-day clock: provisional refund for zero-rated supplies
For exports and SEZ supplies, s.54(6) allows 90% of the claim to be paid provisionally. Rule 91(2) was substituted with effect from 1 October 2025. The officer now makes the RFD-04 order within 7 days of acknowledgement on the basis of identification and evaluation of risk by the system. A proviso lets the officer, for reasons recorded in writing, decline the provisional refund and proceed straight to a final order under Rule 92.
Provisional refund is not a separate claim. You do not apply for it. It follows from a clean, acknowledged zero-rated application.
The Finance Act 2026 extends s.54(6) to inverted-duty refunds as well, but that amendment applies from a date still to be notified. Until then, inverted-duty claims do not get the provisional 90%. More on this in GST refund new rules 2026.
The 60-day clock: final order and payment
Section 54(7) requires the order under s.54(5), that is RFD-06, within 60 days from the date of receipt of a complete application. CBIC has advised officers to issue RFD-06 and the payment order in RFD-05 within 45 days of the ARN, so that disbursement through PFMS finishes within 60 days.
If the officer thinks all or part of the claim is inadmissible, an RFD-08 notice must issue first, you get 15 days to reply in RFD-09, and the proviso to Rule 92(3) bars rejection without a hearing. A notice does not stop the s.54(7) clock, but it can reduce the interest you receive (see below).
What happens when the department misses 60 days
There is no deemed sanction in GST. A refund does not become payable just because the officer is late. What you get instead is interest and the right to push.
Interest under s.56. If tax ordered to be refunded is not refunded within 60 days of the date of receipt of the application, interest at 6% p.a. (Notification 13/2017-CT) is payable for the period of delay beyond 60 days until the date of refund. Tax counts as refunded only when it is credited to your bank account. Where the refund flows from an order of an adjudicating or appellate authority, tribunal or court that has attained finality, the rate is 9%.
Periods that do not count as delay. Rule 94(2), in force from 1 October 2023, excludes from the delay period:
- any time beyond 15 days of receiving an RFD-08 that you take to reply or to submit documents; and
- any time you take to furnish correct bank details or get them validated, where the sanctioned amount could not be credited.
Practical escalation. Keep a dated file of the ARN, the RFD-02 date and every communication. A written reminder to the jurisdictional officer citing s.54(7), followed by the grievance channel and, where delay is serious, a writ petition asking the High Court to direct a decision, are the usual steps. Our note on the grievance and helpline route covers the escalation ladder.
A worked illustration
Illustration: An exporter under LUT files RFD-01 for ₹20,00,000 on 1 April.
| Date | Event | Clock position |
|---|---|---|
| 1 April | RFD-01 filed, ARN generated | Day 0 |
| 10 April | RFD-02 acknowledgement | Within 15 days |
| 15 April | RFD-04 for ₹18,00,000 (90%) | Within 7 days of acknowledgement |
| 31 May | 60 days end | Balance ₹2,00,000 still unpaid |
| 30 June | RFD-06 and RFD-05 for the balance; credited the same day | 30 days late |
Interest runs only on the ₹2,00,000 paid late: ₹2,00,000 × 6% × 30/365 = ₹986 (rounded). The ₹18,00,000 paid provisionally within the window attracts no interest. The detailed method is in GST refund interest calculation with example.
Need help with a delayed refund?
If your claim has crossed 60 days without an order, or interest was left out of the payment order, we can put the dates on record, compute the interest under s.56 and Rule 94 and take it up with the officer. See our GST refund time limit support, check live progress with GST refund status help, or start from our GST refund services overview.
Key takeaways
- 15 days for RFD-02 or RFD-03 (Rule 90); no deficiency memo after an acknowledgement.
- 7 days from acknowledgement for provisional refund of zero-rated claims, now risk-based (Rule 91(2) from 1 October 2025).
- 60 days from a complete application for the final order (s.54(7)).
- No deemed sanction: the remedy for delay is 6% interest (9% for refunds flowing from final appellate orders), plus escalation.
- Your own delays in replying to RFD-08 or fixing bank details are cut out of the interest period (Rule 94(2)).
Read next
- Section 56: interest on delayed refunds
- Rules 90–92: acknowledgement, deficiency and sanction
- How many days a GST refund takes
- Can a GST refund be claimed after 2 years?
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.