Who Can Claim GST 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.
Section 54(1) of the CGST Act says "any person" who has paid tax, interest or any other amount can apply for a refund. In practice that phrase is narrower than it sounds: the person must have borne the tax, fall into a recognised refund situation, and file within the time limit.
A GST refund can be claimed by the person who bore the incidence of the tax (s.54(1) read with s.54(8)). For registered businesses, refund of accumulated input tax credit is allowed only in two cases under s.54(3): zero-rated supplies without payment of tax and inverted duty structure. Tax paid in excess, wrongly, or on exports with payment is refundable separately. UN bodies and embassies claim under s.54(2)/s.55 in RFD-10, and unregistered buyers can claim only in narrow cases such as a cancelled flat or long-term insurance contract, through temporary registration.
What "any person" really means
The ICAI Handbook on Refunds reads "any person" as the person who has borne the incidence of tax. If the supplier paid tax wrongly and did not pass it on, the supplier claims. If the tax was collected from the buyer and the buyer bore it, the buyer is the rightful claimant. This is the doctrine of unjust enrichment, built into s.54(4) and s.54(8): a refund that would enrich someone who already recovered the tax from a customer goes to the Consumer Welfare Fund instead of the applicant.
So the question "who can claim?" always has two parts: are you in a refundable situation, and are you the one who bore the tax?
Registered persons: the main claimants
Most refunds are claimed by registered businesses on the GST portal in Form GST RFD-01. The portal lists the categories you can choose from:
| Refund category (RFD-01) | Typical claimant |
|---|---|
| Unutilised ITC on exports without payment of tax (LUT) | Exporter of goods or services |
| Tax paid on export of services with payment | Service exporter who paid IGST |
| Unutilised ITC / tax paid on supplies to SEZ | Supplier to an SEZ unit or developer |
| Unutilised ITC due to inverted tax structure | Manufacturer or trader whose input rate is higher than output rate |
| Deemed export supplies | Supplier or recipient (one of them, not both) |
| Excess balance in electronic cash ledger | Any registered person |
| Excess payment of tax | Person who paid more than due |
| Intra-State held to be inter-State (or vice versa) | Person who paid the wrong tax head |
| Assessment / appeal / other order | Person in whose favour the order was passed |
Exporters of goods who pay IGST do not file RFD-01 at all: under Rule 96, the shipping bill itself is treated as the refund application once GSTR-1 and GSTR-3B are filed and match ICEGATE.
If you are unsure which of these fits your case, our GST refund service starts by mapping your ledger to the right category, because a claim filed under the wrong head is a common reason for a deficiency memo.
The two ITC refund doors under Section 54(3)
A registered person cannot claim refund of accumulated ITC just because the balance is large. Section 54(3) allows it only for:
- Zero-rated supplies made without payment of tax (exports and SEZ supplies under LUT), and
- Inverted duty structure, where the rate on inputs is higher than on output supplies, other than nil-rated or fully exempt output and notified goods.
The third proviso adds a bar: no ITC refund if the supplier avails drawback of central tax or claims IGST refund on the same supplies. A business with large idle credit that fits neither door must carry it forward and use it against future output tax. The ITC-heavy position after the GST 2.0 rate changes of 22 September 2025 made this distinction important for many sectors; see ITC accumulation after the GST 2.0 rate cuts.
Special categories under Section 54(2) and Section 55
Specialised UN agencies, multilateral financial institutions notified under the UN (Privileges and Immunities) Act, and consulates or embassies of foreign countries hold a Unique Identity Number (UIN). They claim refund of tax paid on their inward supplies under Rule 95, quarterly, in Form RFD-10 with a statement of inward supplies in GSTR-11, within two years from the last day of the quarter in which the supply was received.
The Canteen Stores Department has its own route under Rule 95B.
Casual and non-resident taxable persons
A casual taxable person or non-resident taxable person deposits tax in advance at registration under s.27(2). Any unused balance can be refunded, but s.54(13) says it will not be refunded unless the person has filed all returns for the whole period the registration was in force.
Unregistered persons: a narrow door
Since Notification 26/2022-CT and Circular 188/20/2022-GST, an unregistered buyer can claim a GST refund where:
- a construction agreement (flat booking) or a long-term insurance policy was cancelled or terminated,
- the supplier can no longer issue a credit note because the s.34 time limit has lapsed, and
- the buyer bore the tax.
The buyer takes a temporary registration with PAN, files RFD-01 under "Refund for Unregistered Person" with Statement 8 and a supplier certificate, and the two-year clock runs from the date of the supplier's cancellation letter. Details are in GST refund on flat cancellation.
Outside such cases, an ordinary consumer who paid GST on a purchase has no refund route. We explain why in Can an individual claim GST refund?.
Conditions every claimant must meet
| Condition | Where it comes from |
|---|---|
| File within 2 years of the relevant date (cash-ledger balance excluded) | s.54(1), Explanation 2; Circular 166/22/2021-GST |
| Show the tax was not passed on (declaration up to ₹2 lakh, CA/CMA certificate above, where applicable) | s.54(4), Rule 89(2)(l)/(m) |
| ITC claimed must appear in GSTR-2B | Circular 135/05/2020-GST |
| Returns filed; refund may be withheld on default | s.54(10) |
| Bank account in own name, validated for PFMS | Rule 96C |
| Refund of ₹1,000 or more | s.54(14) |
Worked illustration: an exporter under LUT has ₹5,00,000 of ITC and zero-rated turnover of ₹40,00,000 out of adjusted total turnover of ₹50,00,000. Under Rule 89(4) the maximum refund is ₹5,00,000 × 40/50 = ₹4,00,000 (illustration). The remaining ₹1,00,000 relates to domestic supplies and stays in the credit ledger. You can test your own figures on the GST refund calculator.
Who cannot claim
- A consumer who simply paid GST on goods or services for personal use.
- A composition taxpayer seeking ITC refund (composition dealers do not take ITC).
- A business whose accumulated ITC arises from neither exports/SEZ nor inverted duty.
- A trader whose output is nil-rated or fully exempt, for inverted-duty refund.
- Anyone past the two-year limit, other than for excess cash-ledger balance.
Need help working out whether you qualify?
If you are a registered business with credit piling up, or you paid tax that you believe was not due, we can check which s.54 category applies, test the limitation date and prepare the RFD-01 file. Start with our GST refund filing support.
Key takeaways
- "Any person" in s.54(1) means the person who bore the tax, not anyone who paid GST at some point.
- ITC refunds are limited to zero-rated supplies without payment and inverted duty (s.54(3)).
- UIN bodies use RFD-10; casual and non-resident taxable persons recover the advance deposit after filing all returns.
- Unregistered persons can claim only in narrow cases like cancelled flats or insurance policies.
- Every claim is subject to the two-year limit (cash-ledger balance excepted) and the unjust-enrichment test.
Read next
- Types of GST refund: every category explained
- GST refund eligibility checklist
- Section 54 to 58 of the CGST Act: refund provisions
- Time limit of 2 years and the relevant date
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.