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Section 54 · Rule 89(4) & 89(5)

GST Refund Calculator

Accurately compute maximum admissible refund for Inverted Duty Structure and Zero-Rated Export supplies under LUT. Form RFD-01 compliant.

Inverted Supply Details

Value of outward goods sold at lower tax rate (e.g. 5%).

Excludes ITC on capital goods and input services.

Output tax on inverted supply before ITC adjustment.

Maximum Eligible GST Refund
₹2,85,714

Calculated under amended Rule 89(5) formula (Circular No. 173/05/2022-GST).

Track Refund Approval Timeline (RFD-02 to RFD-06) →

Statutory Formula Breakdown

Frequently Asked Questions

Who can claim a refund of unutilized Input Tax Credit (ITC) under Section 54?
Under Section 54(3) of the CGST Act, refund of unutilized ITC is allowed only in two cases: (1) Zero-rated supplies of goods or services made without payment of tax under Letter of Undertaking (LUT), and (2) Inverted Duty Structure where input tax rates exceed output tax rates.
How is refund for zero-rated exports under LUT calculated under Rule 89(4)?
Under Rule 89(4), Maximum Refund = (Turnover of zero-rated supplies of goods + services) × Net ITC ÷ Adjusted Total Turnover during the tax period.
How is Inverted Duty refund calculated under amended Rule 89(5)?
Under amended Rule 89(5) (Notification 14/2022-CT), Refund = [(Inverted Turnover × Net ITC on inputs ÷ Adjusted Total Turnover)] − [Tax payable on inverted supplies × (Net ITC on inputs ÷ (Net ITC on inputs + ITC on input services))].
What is included in "Net ITC" for export refunds versus inverted duty refunds?
For zero-rated exports under Rule 89(4), Net ITC includes ITC availed on both inputs (goods) and input services. For inverted duty refunds under Rule 89(5), Net ITC covers inputs (goods) ONLY; input services and capital goods are excluded.
Are capital goods eligible for GST refund?
No. The proviso to Section 54(3) strictly bars any refund of accumulated Input Tax Credit on capital goods (e.g. machinery, vehicles, office equipment) for both exports and inverted duty supplies.
What is "Adjusted Total Turnover" in the statutory refund formulas?
Adjusted Total Turnover is the total turnover of the taxpayer in the state/UT during the relevant tax period, excluding exempt supplies other than zero-rated supplies.
What is the statutory limitation period to file Form GST RFD-01?
Under Section 54(1), refund claims must be submitted electronically within 2 years from the "relevant date" (e.g. shipping bill date for goods export, bank realization date for service export, or financial year-end for inverted duty).
Which documents must be uploaded with Form GST RFD-01?
Required documents include Statement 1 / Statement 2, GSTR-2B purchase reconciliation, shipping bills or FIRA/BRC for services, turnover declarations, and a CA certification in Annexure 2 if the claim exceeds ₹2 Lakhs.
Does this calculator file the refund directly on the GST portal?
No. This tool provides a mathematical calculation based on CGST Rule 89 formulas. The formal claim must be filed online in Form GST RFD-01 on the official GST portal (gst.gov.in).
Can an exporter receive a provisional refund before final audit?
Yes. Under Section 54(6), the proper officer is required to grant 90% of the claimed amount on a provisional basis in Form GST RFD-04 within 7 days from the issuance of acknowledgement (RFD-02) for zero-rated supplies.