Difference Between Provisional and Final GST Refund - A Complete Practical Guide
Introduction to GST Refunds in India A GST Refund arises when a taxpayer pays excess tax or becomes eligible to receive a refund under specific provisions of GST law. The Refund Process Under GST is designed to ensure liquidity for businesses, especially exporters and taxpayers dealing with inverted duty structures. However, many taxpayers are unclear about the difference between a provisional refund and a final refund, leading to confusion when claiming a GST Refund . Understanding this distinction is essential to meet GST compliance requirements and avoid delays or rejections. What Is a Provisional GST Refund? A provisional GST refund is an interim refund granted to eligible taxpayers soon after filing the refund application. Key Features of Provisional GST Refund Issued temporarily before full verification Applicable mainly to exporters and zero-rated supply taxpayers Granted to support business cash flow Up to 90 per cent of the c...