Section 55 – Refunds to Certain Persons
Section 55 of CGST Act, 2017 – Refunds to Certain Persons
Updated on: February 2026 (as applicable till date)
Prepared by: Yours Tax Consultant
1. Scope and Purpose of Section 55
Section 55 provides a special refund mechanism for certain specified persons who enjoy privileges and immunities under international law.
This provision ensures that:
- GST does not become a cost for diplomatic and international bodies
- India honours its international treaty obligations
2. Statutory Provision – Section 55
Section 55:
The Government may, on the recommendations of the Council,
by notification,
specify any specialised agency of the United Nations Organisation
or any Multilateral Financial Institution and Organisation
notified under the United Nations (Privileges and Immunities) Act, 1947,
consulate or embassy of foreign countries,
or any other person or class of persons,
and provide for refund of the tax paid
on the inward supplies of goods or services or both
received by them,
in such manner and subject to such conditions and restrictions
as may be prescribed.
3. Persons Eligible for Refund under Section 55
Refund under this section is available to:
- Specialised agencies of the United Nations
- Multilateral financial institutions notified under UN Act, 1947
- Embassies and consulates of foreign countries
- Any other persons or organisations notified by Government
Eligibility is strictly notification-based.
4. Nature of Refund under Section 55
Key characteristics of refund under Section 55:
- Applies only to inward supplies
- Refund of GST actually paid
- No requirement to prove unjust enrichment
This refund is a privilege, not a commercial refund.
5. Refund Application Procedure
Eligible persons must:
- Apply for refund in prescribed form
- Attach invoices and prescribed declarations
- Comply with conditions specified in notifications
Refund is granted only for supplies used for official purposes.
6. Time Limit for Filing Refund Application
Refund application under Section 55 must be filed:
- Within six months from the last day of the quarter in which supply was received
Delay beyond this period may result in rejection.
7. Section 55 Read with CGST Rules
Section 55 must be read with:
- Rule 95 – Refund to specialised agencies of UN etc.
- Rule 96 – Refund of IGST on exports (contextual)
Rule 95 prescribes:
- Form of application
- Supporting documents
- Certification requirements
8. Form Prescribed for Refund
Refund under Section 55 is filed in:
- FORM GST RFD-10
This form is specific to diplomatic and international bodies.
9. Common Practical Issues
- Invoices not in the name of eligible organisation
- Supplies not used for official purposes
- Delay in filing RFD-10
- Non-compliance with notification conditions
10. Section 55 vs Section 54
Key distinction:
- Section 54: General refund provisions
- Section 55: Special refund for privileged persons
Refund under Section 55 is independent of Section 54.
11. Related Provisions
12. Professional Insight
Refund under Section 55 is privilege-based, not transaction-based. Strict adherence to notification conditions and timelines is essential—equity or hardship arguments do not apply.
Disclaimer: This article is prepared based on the CGST Act, CGST Rules, notifications and prevailing legal position as applicable till date. Eligibility and conditions are strictly notification-driven.
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