GST refund pendency falls sharply over two years; only 110 claims pending beyond 90 days: Govt
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The pendency of Goods and Services Tax (GST) refund claims has declined significantly over the past two years, with the number of claims pending beyond the prescribed timelines falling sharply as of March 31, 2026, the government informed Parliament on Monday.
In a written reply to the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said only 64 refund claims, involving about ₹164 crore, were pending for more than 60 days but up to 90 days as of March 31, 2026.
This marks a sharp decline from 907 claims worth ₹274 crore pending at the end of FY24 and 374 claims amounting to ₹246 crore at the end of FY25.
The number of refund claims pending for more than 90 days also dropped substantially to 110 claims involving ₹64 crore as of March 31, 2026, compared with 1,592 claims worth ₹696 crore at the end of FY24 and 712 claims involving ₹560 crore at the end of FY25.
Chaudhary attributed delays in processing refund claims primarily to taxpayers' delayed submission of documents and replies to notices issued by tax authorities. Other reasons include requests from taxpayers to keep refund claims pending while they furnish additional documents in response to show-cause notices, and a limited number of system-related issues.
The minister said refunds related to exports of goods on payment of Integrated GST (IGST) are processed through a fully automated electronic system by integrating the GST portal with the Central Board of Indirect Taxes and Customs' (CBIC) ICEGATE platform, eliminating manual intervention.
He added that in cases involving zero-rated supplies, provisional refunds of up to 90% of the claimed amount are sanctioned within seven days of acknowledgement of the refund application based on system-driven data analysis and risk evaluation.
Chaudhary also said registered taxpayers can track the status of their refund applications at every stage through the GST common portal while reasons for rejection of refund claims are communicated through speaking orders issued under the provisions of the Central GST Act, 2017.
The sanction of provisional refund of 90% of refund claim on the basis of data analysis and risk evaluation by the system is being given for the refunds claims on account of zero-rated supply under the provisions of the CGST Act, 2017 and rules made thereunder, within 7 days of the acknowledgement of refund application, he added.