GST Refund Application Procedure For Unregistered Persons

GST Refund Application Procedure For Unregistered Persons

Some rules and regulations were brought forward in the 48th GST Council meeting. In this meeting, some rules were made for unregistered people who want a refund under the GST application

This decision was made after certain instances and actions were taken when some of the unregistered applicants came under agreements that were later cancelled. Here is a general guide for the GST refund application procedure. 

Need of GST Refund Application

There were two types of major cases due to which the government decided to grant permission for unauthorized or unregistered GST persons to have a GST refund.

The first one is related to construction buyers. Under this, specific unregistered buyers agreed with people to have services related to apartments, construction, and other services. 

The registered buyers have paid some amount or full payment for such services. But it came to the notice that after a certain period of time, such agreements were broken due to specific reasons. 

Under such situations, the amount paid to the supplier was returned to the buyer but deducted from the GST. This is because that amount was already paid to the government.

The second instance states that unregistered buyers can file applications for a GST refund for a long-term period of insurance.

 The company might have paid the amount to the buyer but without the GST amount.

So people going through the above two types of instances can now apply for GST applications for a refund.

Documents for GST Refund Application

  • Your original PAN card.
  • Aadhar card with your registered name.
  • Bank account details have the same name and information as the Aadhar and PAN cards.
  • Details and proof of invoice as well as GST paid..
  • Details as proof of the total amount you received after the agreement was terminated.
  • Copy of original agreement letter with the supplier or builder.
  • Proof of documents or any statement that you have received payment after the agreement was cancelled from the builder itself.
  • Proof of document by the supplier or builder states that the government paid the tax and was not adjusted in the credit that you (unregistered buyer) received.
  • A certificate or document as proof by the builder or supplier itself that they have yet to take the amount of GST or will take it in the future.

Terms and Conditions for GST Refund Application

A few terms or provisions must be fulfilled by a non-registered person to file for a GST refund application. These provisions are given below: 

  • Section 54(1) of the CGST Act states that the person can file and get a GST refund only within 2 years of the given date.
  • Section 54(8)(e) of the CGST Act also states that if an unregistered person has yet to pass it to any other person, they can receive a refund. But this refund will not be received under the Consumer Welfare Fund.

There have been a few changes in the documentation and laws for unregistered people to fill out applications for GST returns

These changes will allow an unregistered person to make a temporary login user ID for GST portals to get a refund through the category known as Refund for unregistered persons. 

Get a Temporary User ID

An unregistered person can get a temporary user ID to fill out an application for a GST return. Challan is made after filling out an application. 

After this, the payment is made, and print should be made of this application. This application should be submitted to the State advance ruling authority office. 

The usual login facility or procedure is not provided to a person who is unregistered to the GST portal. 

An unregistered person makes a temporary user ID. The registered person can also create a temporary user ID by going to the official portal of the GST website. 

Procedure for GST Refund Application for Unregistered Persons

Here is the procedure mentioned for registration for GST refund applications for unregistered persons.

  • The first step to obtaining a GST refund for an unregistered person is to get a temporary GST user ID. This can be done by visiting the official website of the GST portal and using their PAN card.
  • The next step is to fill in the information of unregistered applicants, such as state or union territory. This is where the refund of GST is to be claimed by the buyer.
  • Now the unregistered person has to fail their Aadhar card number and go through the Aadhar card verification or authorization process.
  • Now the unregistered applicant has to enter his bank account details. It is where the refund of GST will be granted. These bank account details should be matched by more information, such as the name mentioned on the PAN card.

How to file a Refund application

  • Open the official GST portal website. Click on the Refund for the unregistered person category. Under these categories, a form which is called GST RFD-01 is given. 
  • PDF of statement 8 is also required to be uploaded in this application.
  • An application should be uploaded, which was provided by the supplier. This provision is stated in Rule 89(2)(kb) of the CGST.

Relevant date: Refund Application Procedure for Unregistered Persons

Section 54(1) of the CGST Act states that the unregistered person can register the application for GST funds within 2 years of the credit expiry period. 

If the long-term agreement has been cancelled between an unregistered buyer and a supplier, then there is no fixed relevant date for the GST fund. In this case, the buyer could make a full payment, or it might have been paid in instalments. 

Certain Prerequisites

  • It is necessary to file a separate application for a separate supplier to get a GST refund. In addition; separate applications should be reached if the suppliers live in different states or even union territories.
  • Claims for GST funds can only be registered if the time period of credit has expired. If the credit period has not expired and the supplier still agrees with the buyer, then there is no need to file a registration application for the GST fund.
  • After Filing the  Application
  • An unregistered person fills out the application for a GST refund. The post process is similar to that of the clams of RFD-01 forms.
  • Firstly the officer is responsible for checking all the documents and eligibility claims to get GST funds.
  • They offer a refund sanction in the form of GST RFD-06.
  • They set up a detailed speaking with you within 2 months or 60 days between the date of receipt and the date of registration. 


According to the CBIC, now unregistered people can also register for GST funds. This circular was passed in the council meeting on 27/12/2022. 

There were many representations as well as scenarios of cases that CBIC received. According to these scenarios, the buyers or unregistered people requested to get their GST funds back in case of any cancellation or termination of the agreement between supplier and buyer. 

This is because the GST fund would already have been paid as tax to the government and was not returned to the buyer. 

The council meeting of CBIC awareness was delivered to the representative where buyers had already paid their amount for the services they were looking for, but an agreement was finally cancelled. 

In such cases, the supplier only paid the amount back to buyers, which had been deducted. 

Some other similar cases were also reported for long-term insurance agreements that came to an end.

FAQs Related to GST Refund Application Procedure for Unregistered Persons

1. Can an unregistered person make a payment on the GST portal?

For an unregistered person to make a payment on the GST portal, it is necessary to make a user id and log in. Once they create their user id, they must log in to the GST portal and create their challan. Then they have to search for the application and download it. When they register the application, they must pay on the GST portal. 

2. How do I file a GST refund application?

You must log in to the GST portal to file a GST refund application. Go to the refund section and click on the refund application. A list of reasons for refunding will be displayed on your screen. Click on Refund on account of excess balance in cash ledger as a reason for your refund and click on the further processes. 

3. What is the penalty for not registering for GST?

The penalty for not registering for GST starts from 10000 rupees and increases with time. 

4. Who is an unregistered applicant in GST?

An unregistered applicant in GST means that a person who has not registered for GST or is unauthorized to log in under the GST act can make their temporary ID and login into the GST portal. This login id offers only certain facilities to the person who has not been a registered applicant in GST.

5. Can unregistered claim a GST refund?

Yes, unregistered applicants can also file and claim a GST refund. They must log into the GST portal and make their temporary user ID.

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