GST Refund Calculator
Inverted Duty Structure (Rule 89(5)) | Export Refund — LUT (Rule 89(4)) | Export Refund — IGST Paid (Rule 96)
Specialist Tool by B.A. Bedawala & Co., Chartered Accountants, Ahmedabad
Scope: This calculator computes the maximum admissible GST refund as per current CGST Rules. Formulas reflect the position post Notification 14/2022-CT (05-Jul-2022).
90% Provisional Refund is automatically processed for eligible claims filed on/after 01-Nov-2025.
Inverted Duty Structure (IDS) Refund
When does IDS refund apply? When the tax rate on inputs (goods) is higher than the tax rate on output supplies, leading to accumulation of unutilized ITC (e.g., inputs @ 18%, output @ 5%).
Formula (Rule 89(5) — New formula w.e.f. 5th July 2022):
Max. Refund = { (Turnover of Inverted Rated Supply × Net ITC) ÷ Adjusted Total Turnover } − { Tax Payable on Inverted Rated Supply × (Net ITC ÷ ITC availed on inputs and input services) } Rule 89(5) CGST Rules
Max. Refund = { (Turnover of Inverted Rated Supply × Net ITC) ÷ Adjusted Total Turnover } − { Tax Payable on Inverted Rated Supply × (Net ITC ÷ ITC availed on inputs and input services) } Rule 89(5) CGST Rules
💡 Likely IDS Scenarios — Click to Auto-fill
💊 Pharma / API Manufacturing
Est. Refund: ₹6,00,000 on ₹50L turnover
🧵 Textile — Yarn to Fabric
Est. Refund: ₹5,83,333 on ₹1Cr turnover
👟 Footwear (Below ₹1,000)
Est. Refund: ₹2,25,000 on ₹75L turnover
🌾 Fertilizers
Est. Refund: ₹9,00,000 on ₹75L turnover
Enter ITC & Inverted Turnover Details
Enter ITC availed and turnover at each inverted rate. GST on turnover auto-computes. Totals are calculated automatically.
| Particulars | Turnover (₹) | GST (₹) |
|---|---|---|
| ITC on Input Goods ? | — | |
| ITC on Input Services ? | — | |
| ITC on Capital Goods ? | — | — (Not refundable) |
| Total ITC on Inputs + Input Services ? | — | |
| Inverted Turnover @ 0.1% ? | ||
| Inverted Turnover @ 3% | ||
| Inverted Turnover @ 5% | ||
| Inverted Turnover @ 12% | ||
| Inverted Turnover @ 18% | ||
| Total Inverted Turnover ? | ||
| Total Turnover (Adjusted) ? | — |
❓ Frequently Asked Questions
What is Inverted Duty Structure (IDS) refund?
When tax rate on inputs (goods) exceeds tax rate on output supplies, unutilized ITC accumulates in the Electronic Credit Ledger. Section 54(3)(ii) of CGST Act permits refund of such accumulated ITC. The formula is prescribed under Rule 89(5) and applies only to ITC on inputs — not input services or capital goods.
How was Rule 89(5) amended on 05-July-2022?
Notification 14/2022-Central Tax introduced a subtraction term that accounts for input-service ITC proportionally, making the refund calculation more realistic. The earlier formula gave full refund of inputs-only ITC allocated to inverted turnover; the new formula reduces it by a fraction relating to input services. The Andhra Pradesh High Court (Feb 2026) and Gujarat High Court have held this amendment to be clarificatory and therefore retrospectively applicable.
What is the 1.5x domestic value cap for exports?
Introduced by Notification 16/2020-Central Tax (23-Mar-2020), Rule 89(4)(C) caps the "Turnover of Zero-Rated Supply of Goods" at 1.5 times the value of like goods domestically supplied. Per CBIC Circular 197/09/2023-GST, this cap also applies to the denominator (Adjusted Total Turnover). The aim is to prevent over-invoicing and fictitious refund claims.
LUT vs IGST-paid route — which is better?
Under LUT route: No IGST paid upfront, refund of accumulated ITC via RFD-01 in 60-90 days. Preserves working capital but refund processing is slower. Under IGST-paid route: IGST paid on exports, automatic refund via Customs in 15-30 days. Blocks working capital but refund is faster and requires less documentation. Use our comparison tool (LUT tab) for your specific scenario.
What is the time limit for GST refund application?
Section 54(1) of CGST Act prescribes 2 years from the relevant date. For IDS refund, relevant date is end of the financial year. For exports of goods, it's the date of export (let export order date). For services, it's the date of FIRC/BRC. Period from 01-Mar-2020 to 28-Feb-2022 is excluded per Notification 13/2022 due to COVID.
Is CA certificate mandatory for GST refund?
As per Rule 89(2)(m), a CA/CMA certificate in Annexure 2 is mandatory when refund claim exceeds ₹2 lakh. The certificate certifies that the incidence of tax has not been passed on to any other person (no unjust enrichment). For claims below ₹2 lakh, a self-declaration suffices.
What is the 90% provisional refund feature (effective 01-Nov-2025)?
The GST portal has been upgraded to automatically process 90% provisional refund after preliminary system checks, for refund claims filed on or after 01-November-2025. The remaining 10% is released after final verification by the proper officer. This significantly improves working capital for exporters and IDS-affected businesses.
Are input services and capital goods refundable under IDS?
No. Per the Supreme Court ruling in Union of India v. VKC Footsteps India Pvt. Ltd. (2021), IDS refund under Rule 89(5) is limited to ITC on inputs (goods) only. ITC on input services and capital goods is NOT refundable under the IDS route. However, the 2022 amendment to the formula proportionately accounts for input services in the subtraction term.
Can I claim refund of export and IDS simultaneously?
Yes, under separate RFD-01 applications for each refund category. However, ITC utilized/claimed under one category cannot be claimed again under another. The Electronic Credit Ledger balance is a shared pool — taxpayers must maintain separate working for each refund type to avoid duplication, and declare the same in Rule 89(2)(m) declaration.
