Free Tool · Rule 89(4) & 89(5)

GST Refund Calculator

Calculate the maximum GST refund you can claim — for inverted duty structure (where input tax rate exceeds output tax rate) under Rule 89(5), or for export and zero-rated supplies under Rule 89(4) of the CGST Rules, 2017. Includes provisional refund (90%) and final order amounts.

Rule 89(5), CGST Rules 2017 — Maximum Refund = (Turnover of inverted rated supply × Net ITC on inputs only) ÷ Adjusted Total Turnover − Tax payable on inverted rated supply. ITC on input services is excluded (Supreme Court, VKC Footsteps, 2021).

Turnover of inverted rated supply (₹)

Sales turnover where input tax rate > output tax rate — for this tax period

Net ITC on INPUTS only (₹)

ITC on goods/inputs — do NOT include ITC on input services or capital goods

Adjusted Total Turnover (₹)

Total turnover of the registered person for the tax period (GSTR-3B basis)

Tax payable on inverted rated supply (₹)

Output GST payable on the inverted rated supply (CGST + SGST or IGST)

This calculator applies Rule 89(4) and Rule 89(5) of the CGST Rules, 2017 and Section 54 of the CGST Act, 2017. The Supreme Court in Union of India vs. VKC Footsteps India Pvt. Ltd. (2021) held that ITC on input services cannot be included in the Rule 89(5) refund formula. CGST Instruction 6/2025 (October 2025) extended the 90% provisional refund to inverted duty structure claims. This tool is for estimation only — actual refund is subject to officer scrutiny. CA certificate required if refund exceeds ₹2 lakh under Rule 89(2)(h).

Inverted Duty Structure

Applies when input tax rate > output tax rate — common in textile, pharma, and food processing. Rule 89(5) formula; ITC on input services excluded (VKC Footsteps, SC 2021).

Export/Zero-Rated Refund

Applies to exporters and SEZ suppliers under LUT. Rule 89(4) formula — ITC on both inputs and input services is included, unlike Rule 89(5).

90% Provisional (Section 54(6))

90% of refund claimed is paid within 7 days of RFD-02 acknowledgment. CGST Instruction 6/2025 (Oct 2025) extended this to IDS refunds as well.

2-Year Time Limit

Refund application must be filed within 2 years from the relevant date under Section 54 CGST Act 2017. For IDS, the relevant date is the last date of the financial year.

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