Verification and Acknowledgement of GST Refund Application

A Practical Guide for Delhi Taxpayers

The GST refund process does not end with filing Form GST RFD-01. One of the most important stages is the verification and acknowledgement of the GST refund application by the tax authorities. Many refunds get delayed or rejected due to issues identified at this stage. For businesses and professionals in Delhi, understanding how verification works can help ensure faster processing and avoid unnecessary compliance challenges.

This article explains the verification process, acknowledgement mechanism, timelines, and best practices for GST refund applicants.

What Happens After Submitting a GST Refund Application?

Once a GST refund application is filed on the GST portal, it is assigned to the jurisdictional GST officer. The officer conducts a preliminary examination to confirm that the application is complete and compliant with GST rules.

The refund is processed further only after the application is verified and formally acknowledged.

Verification of GST Refund Application

Initial Scrutiny by GST Officer

During verification, the GST officer checks the following:

• Correct selection of refund category

• Filing of all relevant GST returns

• Accuracy of refund amount claimed

• Availability of supporting documents

This stage focuses on completeness and procedural correctness rather than detailed audit.

Data Reconciliation Checks

The officer verifies consistency across multiple records, including:

• GSTR-1 and GSTR-3B returns

• Electronic credit ledger balances

• Export invoices and shipping details, where applicable

Any mismatch may lead to clarification requests or the issuance of a deficiency memo.

Acknowledgement in Form GST RFD-02

If the refund application is found to be complete in all respects, the GST officer issues an acknowledgement in Form GST RFD-02.

Why GST RFD-02 Is Important

• Confirms acceptance of the refund application

• Marks the official start of the refund processing timeline

• Acts as legal proof of a valid refund claim

For Delhi-based businesses, timely receipt of RFD-02 is crucial, as refund timelines are calculated from the acknowledgement date.

Deficiency Memo in Form GST RFD-03

If deficiencies are identified, the officer issues a deficiency memo in Form GST RFD-03 instead of an acknowledgement.

Common Reasons for Deficiency Memo

• Incomplete or incorrect documentation

• Mismatch between ITC claimed and returns filed

• Incorrect refund category selection

• Non-filing or late filing of GST returns

Once RFD-03 is issued, the original refund application is treated as invalid. The taxpayer must rectify the errors and file a fresh GST refund application.

Time Limit for Verification and Acknowledgement

As per GST rules, the tax officer must issue either Form GST RFD-02 or RFD-03 within 15 days from the date of filing the refund application.

If no response is issued within this period, the application is considered acknowledged by default, which strengthens the taxpayer’s position in case of delays.

Best Practices to Ensure Smooth GST Refund Verification

To reduce the risk of objections and delays, taxpayers in Delhi should:

• File all GST returns accurately before applying

• Reconcile input tax credit with returns

• Upload clear and complete supporting documents

• Review refund calculations carefully

• Maintain proper records for future verification

Following these practices improves approval chances and reduces departmental queries.

Role of GST Refund Consultants in Delhi

Verification of GST refund applications requires technical understanding and strong documentation. Many Delhi-based businesses face challenges due to frequent data mismatches or evolving GST rules. Professional GST refund filing services help ensure accurate submissions, proper reconciliation, and timely responses to notices.

This support is particularly valuable for exporters, service providers, and businesses claiming high-value ITC refunds.

Verification and acknowledgement of a GST refund application are critical steps that determine the success and timeline of the refund claim. Understanding how Forms GST RFD-02 and RFD-03 work helps businesses in Delhi stay compliant and avoid unnecessary delays.

With accurate filing, proper documentation, and timely follow-ups, taxpayers can ensure smooth processing of GST refunds. For complex or high-value claims, professional assistance can make the process more efficient and reliable.