GST Refund and Demand Settlement

Refunds and demands sit at opposite ends of the same compliance relationship a business has with the GST authorities: one returns tax that has been paid in excess or accumulated without utilisation, while the other seeks recovery of tax the department believes is due. Common refund situations include exports made without payment of tax, an inverted duty structure where input tax rates exceed output tax rates, and excess balances lying in the electronic cash ledger. Demand notices, on the other hand, typically follow a mismatch, audit observation, or classification dispute, and require a timely, well-documented response to avoid unnecessary recovery action.

Why This Matters

Refund claims that are poorly documented or filed after applicable time limits can be rejected outright, locking up working capital that a business could otherwise deploy. On the demand side, an unanswered or weakly contested notice can quickly convert into a confirmed liability with interest and penalty, making early and accurate engagement essential to managing both cash flow and risk.

How We Help

Export and Inverted Duty Structure Refunds

We compute eligible refund amounts for exporters and businesses affected by an inverted duty structure, prepare the supporting statements and reconciliations required by the refund rules, and file applications within the prescribed time limits.

Excess Cash Ledger and Other Refund Claims

We identify excess balances in the electronic cash ledger and other refundable amounts arising from erroneous payment or excess deposit, and manage the application process through to disbursement, including responses to any deficiency memos raised by the department.

Demand Notice Response and Negotiation

We review the basis of a demand notice, verify the department's computation against the business's own records, and prepare a factual and legal response aimed at reducing or resolving the demand, including engagement with settlement or amnesty mechanisms where available.

Recovery Proceedings Management

Where a demand has been confirmed, we advise on the options available, including instalment arrangements, appeal with stay of recovery, and other mechanisms to manage the impact on the business while a matter is being contested.

Who Needs This

• Exporters seeking refund of accumulated input tax credit
• Businesses operating under an inverted duty structure
• Companies with excess balances in their electronic cash ledger
• Businesses that have received a demand or recovery notice

Our Approach

We treat refunds and demands as connected cash-flow issues, tracking both proactively so that eligible refunds are claimed without delay and demand notices are addressed before they escalate. Our documentation practices are built around what refund sanctioning and adjudicating officers typically require, which helps reduce queries and speeds up resolution.

Get in Touch

To discuss how we can support you with GST refund and demand settlement, write to us at info@agarwalurs.com.