Refund on Tax Paid on Intra-State Supply Subsequently Held to be Inter-State (and Vice Versa)
Edition: September 2025
Disclaimer: This manual is for compliance facilitation. It does not substitute statutory provisions, notifications, or circulars. Taxpayers must verify with the CGST/SGST Acts, Rules, and GSTN updates.
✍️ Preface
Sometimes a supply initially treated as intra-State (CGST+SGST) may later be held as inter-State (IGST), or vice versa, based on orders issued by tax authorities. In such cases, taxpayers can claim refund of the wrongly paid tax by filing Form GST RFD-01 under this category. This report explains the law basis, process, FAQs, and checklist.
⚖️ 1. Law Basis
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Section 77, CGST Act, 2017 – Tax wrongfully collected and paid as CGST/SGST instead of IGST.
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Section 19, IGST Act, 2017 – Tax wrongfully collected and paid as IGST instead of CGST/SGST.
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Section 54, CGST Act, 2017 – Refund of tax.
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Rule 89, CGST Rules, 2017 – Application for refund.
🛠️ 2. Step-by-Step Process – Filing Refund Application (RFD-01)
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Login → www.gst.gov.in.
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Navigate: Services > Refunds > Application for Refund.
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Select refund type: Tax paid on an Intra-State supply subsequently held to be Inter-State and vice versa.
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Click CREATE REFUND APPLICATION.
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Download Offline Utility – Statement 6 → Enter details:
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GSTIN, Order No. & Date.
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Invoice/Debit Note/Credit Note details.
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Earlier tax treatment (intra/inter) and revised treatment.
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Validate & Calculate → Correct errors if any → Generate JSON → Upload on portal.
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Validate statement online. If invalid → Download Invalid Documents → rectify & re-upload.
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Refund table auto-populates with claimable amount.
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Select Bank Account (from registered list).
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Upload supporting documents (order copy, invoices, etc. – up to 10 files, ≤ 5 MB each).
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Preview → File with DSC/EVC.
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ARN generated → Acknowledgement sent via Email/SMS.
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Application assigned to Refund Processing Officer for scrutiny.
📌 3. Key Features
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Refund allowed only when tax officer’s order changes place of supply (PoS).
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Statement 6 is mandatory.
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No NIL refund required under this category.
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Applications can be saved for 15 days.
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No debit in Electronic Credit Ledger since refund relates to wrongly paid tax.
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ARN serves as proof of filing; application tracked via Track Application Status.
❓ 4. FAQs (with Basis)
Q1. When can refund be filed under this category?
When tax officer issues an order changing PoS, making supply inter-State instead of intra-State, or vice versa.
Q2. What documents are mandatory?
Statement 6 + relevant order copy + invoices/debit/credit notes.
Q3. Is NIL refund required?
No, NIL refund filing is not applicable.
Q4. Do I need to file GSTR-3B before filing refund?
Yes, all due GSTR-3Bs must be filed.
Q5. How to fix statement upload errors?
Download Invalid Documents → Correct JSON → Re-upload.
Q6. Is ARN generated?
Yes, ARN generated and sent via Email/SMS on filing.
Q7. Is ledger impacted?
No debit in ECL; refund pertains to wrongly paid tax.
✅ 5. Compliance Checklist
| Step | Particulars | Status (✔) |
|---|---|---|
| 1 | Login → Select refund type (Intra ↔ Inter-State) | ⬜ |
| 2 | Download & fill Statement 6 → Upload JSON | ⬜ |
| 3 | Validate statement & correct errors | ⬜ |
| 4 | Upload supporting documents | ⬜ |
| 5 | Select bank account & file with DSC/EVC | ⬜ |
| 6 | ARN generated → Email/SMS acknowledgement | ⬜ |
| 7 | Refund application assigned to officer | ⬜ |
| 8 | Track refund via portal | ⬜ |
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