Can GST be refunded under the Indian tax system?

Yes, GST can be refunded in India, but only in certain situations. It’s not automatic and depends on the kind of business or transaction involved.

Some common cases where GST refund is allowed include:

Exports of goods or services – You can claim a refund of GST paid (or claim unutilized ITC if exporting without payment of tax).

Inverted duty structure – When your input tax rate is higher than the output tax rate, you can claim the unused ITC.

Excess GST paid by mistake – If you paid more tax than required, you can apply for a refund.

Supplies to SEZ units – These are zero-rated, so refunds are allowed.

Cancellation of GST registration – Any balance in your electronic cash ledger can be claimed back.

To get a refund, you need to file Form GST RFD-01 on the GST portal. Also, there’s a 2-year time limit for most refund applications.

So yes, GST refunds are possible — just make sure to follow the proper process and submit the required documents.