Key takeaways
- Most GST refunds must be filed within two years of the "relevant date".
- The relevant date differs by refund type: shipment date for exported goods, payment date for many services, the return due date for inverted duty.
- Track the clock claim period by claim period, not once a year.
Section 54 of the CGST Act gives a company two years to apply for most refunds. The difficulty is not the two years. It is knowing when they started, because the starting point, the relevant date, changes with the type of refund.
When the two-year clock starts
| Refund type | Relevant date (simplified) |
|---|---|
| Export of goods by sea or air | Date the ship or aircraft leaves India |
| Export of goods by land | Date the goods pass the frontier |
| Export of services | Date of receipt of payment in foreign exchange, or the invoice date if payment came first |
| Inverted duty structure | Due date for filing the return for the period in which the credit accumulated |
| Deemed exports | Date the return relating to the deemed exports is filed |
| Tax paid under the wrong head | Date the correct tax was paid |
Source: CGST Act, section 54, Explanation 2 (simplified). Check the full text for your facts.
Why claims miss the limit
Refunds are often filed in batches, when someone has time. By then the oldest periods in the batch can be past two years. A deficiency memo adds risk: if a claim comes back and has to be filed again, the new filing still has to fall inside the limit.
What to do now
- List every period
Include exports, inverted duty and any tax paid under the wrong head.
- Work out each relevant date
Use the table above as a start, then confirm against the law.
- File the oldest first
Complete claims avoid deficiency memos that eat into the time left.
- Track interest too
Refunds paid late after 60 days earn interest under section 56.
Our GST Refund Recovery practice tracks the clock for every period. Talk to us if older periods are still open.
Managing Partner of TraCarta. He started the firm in 2018 to recover airline GST credit for corporate clients and leads its three recovery practices.
View profileGeneral information only, not tax advice. Check the current law and your facts before acting.
