RTI If Your GST Refund or Input Tax Credit Is Stuck

You filed a GST refund application with a valid Application Reference Number (ARN). You uploaded the documents. The portal shows "Pending with Tax Officer." Sixty days have passed — the statutory limit under Section 54 of the CGST Act, 2017. Ninety days. Six months. The application has not moved.

Or a deficiency memo arrived — FORM GST RFD-03 — citing a deficiency that you believe you already addressed, or that is phrased so vaguely you cannot be certain what the officer actually wants. You submitted the additional documents. Nothing.

Or your application was acknowledged and then disappeared. The officer changed. The new officer says the previous officer's work needs to be reviewed. Time keeps passing and the money — which is legitimately yours, accumulated from tax paid on inputs against which you made zero-rated supplies or faced an inverted duty structure — remains locked in the government's hands.

The GST department's internal file on your refund application contains the answers. That file records who reviewed the application, what was noted at each stage, what instructions were given or not given, and whether the 60-day statutory limit was acknowledged or ignored. The Right to Information Act, 2005 gives you a statutory mechanism to demand that file and those answers.

Under Section 6 of the RTI Act, you can file a written application to the Public Information Officer (PIO) of the relevant GST authority seeking information it holds. The PIO must respond within 30 days under Section 7(1). Non-response is a deemed refusal triggering full appeal rights. A deliberately evasive or false response carries personal penalty risk for the PIO under Section 20 — ₹250 per day of default, up to ₹25,000.

The Statutory Framework: What Section 54 of the CGST Act Says

Before using RTI, understand the law the GST department is supposed to be following — because the RTI questions you ask will directly reference these timelines.

Section 54(1), CGST Act, 2017: A person claiming a refund of tax, interest, penalty, fees, or any other amount paid must file an application within two years from the relevant date.

Section 54(5), CGST Act, 2017: The proper officer must, after scrutinising the application, make an order within 60 days from the date of receipt of the application in the prescribed manner. For provisional refund under Section 54(6) (export of goods refund), the provisional order must be made within 7 days of acknowledgement.

Section 54(6), CGST Act, 2017: Where a refund claim relates to export of goods or services and is accompanied by a Bank Realisation Certificate or Letter of Undertaking (LUT), the proper officer must issue a provisional refund of 90% of the refund amount within 7 days of the acknowledgement of the refund application.

Rule 90, CGST Rules, 2017: Within 15 days of filing the refund application, the proper officer must either acknowledge the application in FORM GST RFD-02 or issue a deficiency memo in FORM GST RFD-03 specifying the deficiencies. If a deficiency memo is issued, the applicant is required to re-file after correcting the deficiencies. Only the re-filed application starts a fresh 60-day clock.

Key implication for RTI: If your ARN was acknowledged in FORM GST RFD-02 and 60 days have passed without an order of sanction (FORM GST RFD-06) or rejection (FORM GST RFD-07 or FORM GST RFD-08), the GST officer has violated the statutory timeline. RTI can establish this on the record.

Who Is the Correct Public Authority?

GST in India is administered jointly by the central government and state governments, and the correct authority for your RTI depends on which jurisdiction has been assigned the taxpayer.

Central GST (CGST): Administered by the Central Board of Indirect Taxes and Customs (CBIC) under the Ministry of Finance. For taxpayers assigned to central jurisdiction, the relevant authority is the Superintendent or Assistant/Deputy Commissioner of the Central GST Division having jurisdiction over the GSTIN. CBIC and all Central GST offices are Central Government bodies. RTI is filed via rtionline.gov.in. Second Appeal under Section 19(3) goes to the Central Information Commission (CIC).

State GST (SGST): Administered by the State GST Department (called Commercial Taxes Department, Value Added Tax Department, or similar in different states). For taxpayers assigned to state jurisdiction, the relevant authority is the State GST officer of the jurisdictional State GST office. State GST Departments are state government bodies. RTI is filed with the State GST PIO or through the state's RTI portal. Second Appeal goes to the State Information Commission (SIC) of that state.

How to determine jurisdiction: Under the administrative assignment model under GST, approximately 50% of taxpayers are assigned to Central GST jurisdiction and 50% to State GST jurisdiction (with the split varying by state). You can find your jurisdictional assignment in the GSTIN details on the GST portal (gstin.gov.in) or from the GSTN taxpayer profile page. If your GSTIN is assigned to Central jurisdiction, file RTI with the Central GST Division. If assigned to State jurisdiction, file with the State GST office.

The application fee is ₹10 under the RTI (Regulation of Fee and Cost) Rules, 2005. BPL cardholders are exempt under Section 7(5).

Scenario 1: Export IGST Refund Stuck (Zero-Rated Supply Refund)

If you export goods or services under bond/LUT and have accumulated ITC on inputs that were used for those zero-rated exports, you are entitled to a refund of the accumulated ITC under Section 54(3) of the CGST Act. This is one of the highest-volume GST refund categories and one of the most commonly delayed.

For exporters who paid IGST on exports and claimed refund (the alternative to accumulated ITC refund), the refund is ordinarily processed automatically through matching of GSTR-1, GSTR-3B, and the ICEGATE shipping bill data. When the auto-processing fails, a manual refund application under Section 54 is required. Either route can stall.

Sample RTI questions:

"1. Current status of GST refund application bearing Application Reference Number (ARN) ARN number filed by GSTIN X for refund of IGST paid on exports / accumulated ITC on zero-rated supplies for the tax period month/year. State clearly whether the application is pending acknowledgement, acknowledged (FORM GST RFD-02 issued), deficiency noted (FORM GST RFD-03 issued), provisionally sanctioned, finally sanctioned, or rejected."

"2. Whether FORM GST RFD-02 (acknowledgement) was issued for ARN X. If yes, the date of issuance. Whether FORM GST RFD-03 (deficiency memo) was issued. If yes, a copy of that deficiency memo with the specific deficiencies recorded."

"3. Whether an order of sanction (FORM GST RFD-06) or rejection (FORM GST RFD-07 / FORM GST RFD-08) has been passed for ARN X. If no order has been passed despite more than 60 days having elapsed from the date of application / from the date of re-filing after deficiency memo: the reason for the delay and the name and designation of the officer to whom the file is currently assigned."

"4. Whether a provisional refund order under Section 54(6) of the CGST Act was issued for ARN X within 7 days of acknowledgement, as required by law. If not issued within 7 days, the reason."

"5. The name and designation of the Proper Officer who is currently assigned to process ARN X, and the date on which the file was last noted or moved by that officer."

Scenario 2: Inverted Duty Structure ITC Refund Stuck

Section 54(3)(ii) of the CGST Act allows a refund of accumulated ITC where the rate of tax on inputs is higher than the rate on the output supply (inverted duty structure). This refund category is frequently contested by GST officers on the basis of circulars issued by the CBIC — some of which have been set aside by High Courts. If your inverted duty refund has been denied or is stalled, RTI can surface whether the denial is based on a circular or a court-upheld ground, and whether the officer has applied the correct legal position.

Sample RTI questions:

"1. Current status of refund application ARN X filed by GSTIN X for refund of accumulated ITC under Section 54(3)(ii) of the CGST Act, 2017 for tax period month/year. State whether the application is under scrutiny, provisionally sanctioned (FORM GST RFD-04), finally sanctioned (FORM GST RFD-06), or rejected."

"2. Whether a provisional sanction order (FORM GST RFD-04) has been issued for ARN X. If yes, the amount sanctioned provisionally and the date of the order. If not issued within 7 days of acknowledgement for the export component, the reason."

"3. If a show cause notice (SCN) has been issued against the refund claim under ARN X: provide a copy of that SCN, the specific grounds cited, and the section or rule of the CGST Act/Rules relied upon."

"4. If the refund under ARN X has been rejected: provide a copy of the rejection order (FORM GST RFD-08 or equivalent), the specific legal ground for rejection, and the CBIC circular or court judgment (if any) on which the rejection is based."

"5. The name and designation of the Proper Officer who issued the SCN or rejection order, and the name and designation of the officer who approved it."

Scenario 3: Deficiency Memo (FORM GST RFD-03) Issued — Grounds Are Vague

One of the most common obstructions in GST refund processing is a deficiency memo that is drafted in vague or generic terms — "documents insufficient," "supporting evidence inadequate" — without specifying what documents are missing or what standard the submitted documents failed to meet. You re-file with what you believe are the required documents. Another deficiency memo arrives, or the application stalls again.

RTI can force the department to disclose the specific factual and legal basis of the deficiency noted internally — not just the sanitised language in the FORM GST RFD-03, but the file noting behind it.

"1. Provide a copy of the internal file noting / noting sheet of the officer who issued FORM GST RFD-03 for ARN X, specifying the documents examined, the deficiency identified, and the specific provision of the CGST Act or CGST Rules under which each deficiency was noted."

"2. Whether the deficiency noted in FORM GST RFD-03 for ARN X has been addressed in the re-filed application ARN new ARN, if available. If addressed: the status of the re-filed application. If not addressed: the specific remaining deficiency as per the current file noting."

"3. A copy of the documents checklist — prescribed under CGST Circular or departmental instructions — applicable to refund claims of the category filed under ARN X (export of services / inverted duty / excess cash ledger balance). Whether the applicant has submitted all documents on this checklist."

Scenario 4: Cash Ledger Refund Stuck

If you have excess balance in your electronic cash ledger — from excess tax paid, input errors, or other reasons — you can apply for a refund under Section 54(1) of the CGST Act. The 60-day rule under Section 54(5) applies equally.

"1. The current balance in the electronic cash ledger of GSTIN X as per department records as of date. Whether this balance reflects the amount for which refund application ARN X was filed."

"2. Status of refund application ARN X for excess cash ledger balance filed by GSTIN X. Whether the application has been acknowledged, processed, or rejected. If pending beyond 60 days from filing/re-filing, the reason for the delay."

"3. Whether any audit objection, demand, or recovery proceeding is pending against GSTIN X that has caused the refund application to be held. If yes, provide the details of the pending proceeding and the legal provision under which the refund is being withheld."

About GSTN and Why Not to File RTI There

Goods and Services Tax Network (GSTN) is the technology company that operates the GST portal infrastructure — processing returns, hosting taxpayer accounts, generating challans and ARNs. GSTN is a not-for-profit private limited company, not a government department. It is not straightforwardly a public authority under Section 2(h) of the RTI Act — although the question of whether GSTN qualifies given its government shareholding and function has not been definitively settled.

The practical point is this: GSTN does not make substantive decisions about refund approvals. The decisions — acknowledge, issue deficiency memo, sanction, reject — are made by the Proper Officer in the CBIC or State GST department. The file, the notings, the approval orders, and the officer responsible are all in the government department's records, not in GSTN's systems.

File RTI with the Central GST Division (for centrally-assigned taxpayers) or the State GST Department (for state-assigned taxpayers). These are the authorities that made the decision about your refund and hold the file behind that decision.

Section 8(1)(d) and Why It Cannot Block Your Own Refund File

You may encounter an attempt by the GST department to invoke Section 8(1)(d) of the RTI Act to refuse disclosure of your refund-related information. Section 8(1)(d) exempts "information including commercial confidence, trade secrets or intellectual property, the disclosure of which would harm the competitive position of a third party."

This exemption has no application to a taxpayer asking for information about their own GST refund file. The information sought — the file noting on your refund application, the deficiency memo, the officer's noting, the sanction or rejection order — is information about the government's own decision-making process with respect to your tax money. It does not involve third-party trade secrets or commercial confidence.

If the department invokes Section 8(1)(d) to block your access to your own refund file, that invocation should be challenged squarely in the First Appeal, stating that the exemption protects third-party commercial information and has no application to an applicant seeking records of the authority's own administrative decision regarding that applicant's refund claim.

Using the RTI Response

If the response establishes that the 60-day limit under Section 54(5) has been violated: The RTI response confirming that no order has been passed despite more than 60 days having elapsed is a powerful document for a writ petition before the High Court. High Courts have, in multiple decisions, issued mandamus directing GST officers to process refund applications within a specified time when the statutory 60-day limit has been breached. The RTI response establishing the breach is your primary exhibit.

If the deficiency memo identifies missing documents: Compile the documents, re-file using the GSTN portal, and simultaneously serve a copy of your re-filed application on the Proper Officer by email and registered post. Note the date of re-filing — the new 60-day clock starts from the date of acknowledgement of the re-filed application.

If the rejection order cites a CBIC circular that has been set aside by a High Court: GST refund law is a rapidly evolving area, and several CBIC circulars — particularly on inverted duty refunds — have been challenged in High Courts. If your rejection is based on a circular that has been set aside or modified by a court decision, cite that judgment in your reply to the SCN or in your appeal before the Appellate Authority under Section 107 of the CGST Act.

Note on GST appeals: The primary appellate remedy for substantive GST refund disputes is under Section 107 of the CGST Act (appeal to the Appellate Authority), not under the RTI Act. RTI is the tool for procedural transparency — getting the file, the noting, the officer's recorded reason — that supports your substantive appeal. Use both.

If the CPIO fails to respond within 30 days: File a First Appeal under Section 19(1) to the First Appellate Authority of the CBIC Division or State GST office within 30 days of the expiry of the response period. If the First Appeal is also unsatisfactory, file a Second Appeal under Section 19(3) — to the CIC for Central GST matters, to the State Information Commission for State GST matters. The Section 20 penalty is available at the Second Appeal stage.

Quick Reference: Filing RTI for GST Refund Matters

How RTISathi Can Help

GST refund delays are among the most financially damaging administrative holdups a business or individual taxpayer can face — the money is legitimately owed, the statutory timeline is clear, and the bureaucratic obstruction is opaque. RTI, precisely framed, forces the relevant officer to state on the record what stage the application is at, whether the statutory deadline was met, and what the specific deficiency or ground for rejection is — information that, when combined with the substantive appeal or writ remedy, dramatically improves the taxpayer's position.

RTISathi.com can help you identify the correct PIO for your Central or State GST jurisdiction, draft an RTI application targeting the refund ARN, the deficiency memo, the officer's file noting, and the statutory timeline compliance — and support the First and Second Appeal process if the initial response is inadequate. Your refund is a statutory entitlement under the CGST Act. The file recording why it has not been released already exists. RTI is how you access it.