Tax Consultant
1874 Points
Posted on 03 September 2026
GST refund processing depends heavily on which type of refund you have filed.
Three most common types and their typical issues:
1. Export of services (zero-rated with LUT): Refund processed from GSTN portal under RFD-01. Main delay: supplier invoice mismatch in GSTR-2B or LUT not filed properly. Check your LUT is active for the current year.
2. Excess cash in Electronic Cash Ledger: Filed as RFD-01 under Category 9. Usually processed within 60 days. If stuck, check whether the officer has issued RFD-03 (deficiency memo) - that resets the clock.
3. Inverted duty structure: Most delays here. Officer verification of ITC reversal under Rule 42/43 often slows things.
To check status: Login to GST portal > Services > Refunds > Track Application Status > Enter ARN. If it shows Pending with officer for more than 30 days, file a reminder under the Grievance tab. You can also escalate to the jurisdictional AC/DC. This [GST compliance guide](https://taxgarden.in/blog/professional-services-gst-compliance-2026) has the refund tracking and escalation steps.