Section 54 – Refund of Tax
Section 54 of CGST Act, 2017 – Refund of Tax Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Scope and Importance of Section 54 Section 54 provides the statutory right to claim refund of tax, interest or any other amount paid under GST. Refund is a critical aspect of GST because: GST is a destination-based tax Exports are zero-rated Input Tax Credit accumulation must be neutralised This section is the backbone of: Export refunds Inverted duty structure refunds Excess payment refunds 2. Statutory Provision – Section 54(1) Any person claiming refund of: Tax Interest Any other amount paid may make an application for refund before the expiry of two years from the relevant date , in such form and manner as may be prescribed. 3. Meaning of Relevant Date The term “relevant date” varies depending on the nature of refund. Examples: Exports – date of shipping bill or paymen...