Shreyansh Singh, an IIT Kanpur alumnus, has eight years of experience in the finance industry. He has spent 5 years at American Express developing mid to long-term strategies for multiple markets including US, Europe and India. Shreyansh currently leads Growth and Strategy initiatives at Pice.
IGST Refund: Exporters can claim IGST refunds as exports are zero-rated under GST law.
Process Updates: Automation, SMS alerts, and enhanced tracking streamline refund processing.
Tracking Status: Use the GST portal to check refund status as 'Pending,' 'Approved,' or 'Disbursed.'
Bank Details: Update failed bank validations via the portal with DSC or EVC verification.
Time Limit: Refund claims must be filed within two years from the relevant date.
Businesses in India can file their claims through the official GST portal introduced by the Government of India to streamline the online refund process. Integrated Goods and Services Tax or IGST is a component of Goods and Services Tax businesses have to pay.
This blog will discuss what is IGST, a step-by-step guide on how to check IGST refund status and other details below.
What is an IGST refund?
Integrated Goods and Services Tax is an indirect tax levied on the interstate supply of goods and services. When goods are exported, exporters can seek a refund of the IGST paid on them, as exports are considered zero-rated under the GST law. IGST ensures that exporters only pay taxes on input products or services and can afterwards receive a refund once the goods are exported.
Latest Updates on IGSTRefund
There have been significant enhancements to the IGST refund processes. The Central Board of Indirect Taxes and Customs (CBIC) releases notifications and circulars on the process improvements and prerequisites for a hassle-free IGST refund claim process.
Businesses must verify all relevant details of invoices for their export & input services. They should also deliver the necessary documentation in the prescribed format for a smooth refund process.
Automated IGST Refund for Exporters
The IGST refund process is now automated, making the process faster and reducing the waiting period for the processing of refunds.
Introduction of ‘Refund SMS' Services
Exporters are informed about the pending IGST refund status by an SMS service that provides quick updates to them.
Enhanced Tracking
The online IGST refund status tracking has been enhanced, guaranteeing that exporters are always on their refund requests.
Businesses can claim the IGST refund within the time limit of two years from the relevant date. These are the steps for the detailed tracking of the IGST refund status post-log-in:
1. You have to visit the GST portal and log into your account with login credentials. Then, go to Services> Refunds> Track Refund Status.
2. After this, you should select the financial year you filed the refund application. You can also enter the ARN number of the refund application here. Then, the search results will be displayed on the GST portal with the integrated GST refund status.
3. Here, 'Pending' status means that the refund application is still being processed.
4. The screen will display the 'Approved' status if the refund application has been approved and the relevant refund claim is being processed.
5. The screen will display the 'Disbursed' status if the processing of refunds has been completed and the refund amount has been disbursed to the exporter’s bank account.
If the bank account validation has failed, you can update the bank details or rectify the incorrect bank details by following the steps below:
1. First, you will have to click on 'Update Bank Account'. Update your bank account details and select the relevant account number. Once done, click on 'Proceed'.
2. Now, a warning message will appear on the screen to confirm if you are sure to update the bank account for that particular ARN. You should select 'Proceed' here and click on the checkbox in the declaration field.
3. After that, you must select the authorised signatory and proceed by clicking on either the 'File with DSC' or 'File with EVC' option.
4. Now, an OTP will be sent to your registered mobile number. You will need to enter this OTP to confirm filing.
5. A message will display that the bank account is updated successfully after the OTP verification.
Conclusion
If someone wants to track the status of their IGST refund, they will have to visit the GST portal, log in to their account with the proper credentials, and click on 'Services'. Next, they must click on Refunds>Track Refund Status. This enhanced and streamlined process of checking the IGST refund has made the business's work much more efficient.
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FAQs
What is an IGST refund, and who can claim it?
An IGST refund is a reimbursement of the tax paid on exported goods or services, as exports are zero-rated under GST. Exporters are eligible to claim this refund to recover the taxes paid on input supplies used for export activities.
How can I track my IGST refund status?
To track the IGST refund status, log in to the GST portal, go to Services > Refunds > Track Refund Status, and select the financial year or enter the ARN number. The system will display statuses such as 'Pending,' 'Approved,' or 'Disbursed' based on the refund stage.
What does the ‘Disbursed’ status mean in IGST refund tracking?
The 'Disbursed' status indicates that the refund process is complete, and the approved refund amount has been credited to the exporter's registered bank account. It signifies the final step in the refund process.
What should I do if my bank account validation fails?
If bank validation fails, update your bank details on the GST portal by selecting 'Update Bank Account.' Submit the details using DSC or EVC, and verify with the OTP sent to your registered mobile number. The updated bank account will then be linked to your ARN.
Is there a time limit to claim an IGST refund?
Yes, IGST refund claims must be filed within two years from the relevant date, such as the date of the shipping bill or invoice. Filing within this time frame is crucial to avoid the rejection of your claim.
Shreyansh Singh, an IIT Kanpur alumnus, has eight years of experience in the finance industry. He has spent 5 years at American Express developing mid to long-term strategies for multiple markets including US, Europe and India. Shreyansh currently leads Growth and Strategy initiatives at Pice.
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