GST refund to unregistered persons - Logitax

GST refund to unregistered persons


A new functionality has been made available on the GST portal for unregistered persons. It allows them to take a temporary registration and apply for refund as ‘Refund for Unregistered person’ in certain cases. This is clarified in Circular No. 188/20/2022-GST dated 27th December, 2022.

A detailed analysis is provided below:

Situations where this circular is applicable :

  1. Agreement of construction of flat/building has been cancelled
  2. Termination of insurance policies before maturity date

In the above cases, time period for issuing credit note as per section 34 of the CGST Act may have already expired and supplier may refund the amount to buyer after deducting amount of tax collected by him.

Procedure of claiming refund :

  1. Obtain a temporary registration using PAN
  2. During registration, select the same state/UT in which supplier is registered
  3. Undergo Aadhaar authentication in accordance with the provisions of CGST Rule 10B
  4. Enter bank account information in which they wish to receive the refund
  5. Submit refund request using FORM GST RFD-01 under the heading “Refund for unregistered person”
  6. Upload all necessary documents
  7. Separate application for different suppliers and separate temporary registrations for suppliers registered in different states

Time limit to claim refund :

Before the expiry of two years from date of issuance of letter of cancellation of the contract/agreement or termination of long-term insurance policy by the supplier.

Important points to be considered :

  • No refund if amount is less than one thousand rupees
  • Where time period for issuing credit note as per section 34 of the CGST Act has not expired, no need for filing refund claim as credit note can be issued
  • Where amount paid back by supplier is less than amount paid earlier by unregistered person only proportionate amount of tax shall be refunded

Conclusion :

This functionality will enable the unregistered persons to claim refund of tax borne by him and not passed on to any other person. This will further reduce the cost burden on unregistered person.


The information provided in this presentation does not constitute legal opinion or advice. Readers are requested to seek formal legal advice prior to acting upon any of the information provided herein. This presentation is not intended to address the circumstances of any particular individual or corporate body. There can be no assurance that the judicial/ quasi-judicial authorities may not take a position contrary to the views mentioned herein.

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