A GST refund stuck for months is not a minor inconvenience — it is blocked working capital. For exporters, the refund represents the GST paid on inputs that should have been returned within 60 days. When the refund is delayed beyond the statutory period, interest under Section 56 becomes payable. Yet many businesses simply wait, hoping the refund will eventually be processed.
This article explains why refunds get stuck, how to track them, and how our team escalates stuck claims to secure disbursement.
Why GST Refunds Get Stuck
There are several reasons why a refund application remains pending:
- Deficiency memo issued: The officer finds documentation incomplete and issues a deficiency memo, but the taxpayer does not respond.
- Portal issues: Technical glitches prevent the application from moving to the next stage.
- Officer queries: The officer seeks additional information but the query is not visible on the portal.
- Verification pending: The officer has not completed verification of invoices or shipping bills.
- Approval hierarchy: The file is pending with a senior officer for approval.
- Sanction order not issued: The refund is recommended but the payment order has not been generated.
The Statutory Timeline for Refunds
Under Section 54(7), the proper officer must pass an order within 60 days from the date of receipt of the refund application. If the refund is not disbursed within this period, interest under Section 56 is payable at 6% per annum from the date of expiry of the 60-day period.
The 60-day period starts from the date of a complete application — that is, an application that is not deficient in any respect. If a deficiency memo is issued, the 60-day clock restarts when the deficiency is rectified.
How to Track Your Refund
- GST Portal: Navigate to Services > Refunds > Track Application Status.
- PFMS Portal: Track the payment status once the sanction order is issued.
- Email queries: Send a query to the jurisdictional officer with the ARN.
- Grievance portal: File a grievance on the GST portal or CPGRAMS.
How Our Team Escalates Stuck Refunds
Stage 1: Diagnostic Review
We review the refund application, the deficiency memo (if any), and the portal status. We identify the exact stage at which the refund is stuck.
Stage 2: Officer Follow-Up
We correspond with the jurisdictional officer, providing any pending documentation and requesting a status update.
Stage 3: Grievance Filing
If the officer does not respond within a reasonable time, we file a grievance on the GST portal and CPGRAMS.
Stage 4: Escalation to Senior Officers
We escalate to the Commissionerate level and, if necessary, to the Principal Commissioner.
Stage 5: Appellate and Writ Remedies
If the refund remains stuck, we file a writ petition before the High Court seeking a direction for disbursement with interest.
Common Documentation Issues
- FIRC/FIRMS not matching shipping bills.
- GSTR-1 and GSTR-3B turnover mismatch.
- LUT not filed or expired.
- E-way bill or invoice details not matching.
- Bank account details not updated.
Conclusion
A stuck GST refund is recoverable. The key is to diagnose the reason, follow up systematically, and escalate through the available channels. Our team has the experience to track and escalate refund claims until they are disbursed.
At Anuj Desai & Associates, we track GST refund claims, respond to deficiency memos, and escalate stuck refunds through grievance and judicial channels. Our team ensures that your working capital is not blocked.
For a confidential consultation, contact us at office@anujdesaiassociates.com or call 9619456656. Visit our website at https://anujdesaiassociates.com or connect with our founder on LinkedIn at linkedin.com/in/ca-anuj-desai-122547230.