Refunds6 min read· Reviewed 23 June 2026

Why GST refunds get stuck for months (and how to avoid it)

You exported your service, your foreign client paid you in dollars, and you filed for your GST refund weeks ago. Now you're refreshing the portal every other day, the status hasn't budged, and you're starting to wonder if the money is ever coming. You're not doing anything wrong as a freelancer. You're just hitting one of a handful of very predictable snags that trap almost everyone who claims a refund on exports.

Here's the reassuring part: GST refunds rarely get stuck for mysterious reasons. They get stuck for five specific, well-known failure points. Once you understand each one, you can check them off before you file, and that's the whole difference between a refund that clears in a reasonable window and one that sits for months. This is plain-English guidance to help you spot the traps, not personal tax advice, so treat the final sign-off as a conversation with a qualified CA.

First, which refund route are you even on?

If you exported your services without paying GST (using a LUT, the Letter of Undertaking that lets you export at 0% without paying tax upfront) but you've built up unused input tax credit, you claim a refund of that accumulated ITC. If you took the no-LUT route instead, there's a refund path for that too. Either way the mechanics are the same: you file Form RFD-01 with Statement 3, and Statement 3 is where your invoice details and FIRC details go.

FIRC stands for Foreign Inward Remittance Certificate. It's the proof from your bank that the money genuinely came in from abroad. When a US client pays you through PayPal or Wise, that platform or your bank produces this record, and it's what ties your export invoice to actual foreign money landing in your account.

There's a clock on this. You file RFD-01 with Statement 3 within 2 years of the relevant date. Miss that window and the refund can be lost entirely, so don't let invoices pile up unclaimed while you wait for a quieter month.

The five reasons your refund is actually stuck

Almost every stalled export refund traces back to one of these. Run down the list and be honest about which one is biting you:

A mismatch between your GSTR-1 and your GSTR-3B. The two returns have to tell the same story. If your outward supplies don't line up between them, the refund gets flagged.
Choosing the wrong refund type in RFD-01. The form offers several refund categories. Pick the one that doesn't match your situation and the claim goes down the wrong track.
Your bank account failing PFMS verification. PFMS is the government's payment system, and it validates the bank account the refund will be paid into. If your account details don't pass that check, the money has nowhere to go.
A missing FIRC. No proof the foreign payment came in means no clean export refund.
Exports reported in the wrong place instead of Table 6A of GSTR-1. This is the quiet killer, and it deserves its own section below.

Table 6A: the box most freelancers get wrong

In GSTR-1, exports go in Table 6A. Not in the B2B section, not in B2CS. Table 6A is the dedicated home for export invoices, and the refund machinery specifically looks there to match your claim.

This trips up a lot of people because a foreign client can feel like just another customer, so the invoice ends up filed as a regular B2B or B2C supply. The portal accepts it, your return looks filed, and everything seems fine until the refund silently fails to flow because the export it's based on isn't sitting where the system expects it.

Report an export anywhere other than Table 6A and your refund can stall even though every other detail is correct. Always double-check that your export invoices landed in Table 6A before you file RFD-01.

Make your two returns agree before you file

The GSTR-1 versus GSTR-3B mismatch is worth its own mention because it's so common and so avoidable. Think of a developer who invoices a US client across three months: if the export shows up in GSTR-1 one way and in GSTR-3B another way, the numbers stop reconciling and the refund waits.

The fix isn't complicated, it's just disciplined. Before you submit RFD-01, line up your GSTR-1 and GSTR-3B side by side for the period you're claiming and confirm the export figures match. If they don't, sort that out first. Chasing a mismatch after the refund is already stuck is far slower than catching it up front.

Build your refund checklist around exactly these five points: GSTR-1 vs GSTR-3B agree, the right refund type selected in RFD-01, your bank account passing PFMS, your FIRC in hand, and exports sitting in Table 6A. Get all five right before you file and the refund clears far faster than if you fix them one painful rejection at a time.

Don't go silent on your returns while you wait

One more trap, separate from the refund itself: even in a month with no income, your returns are still due. Nil returns are mandatory. Skipping them because nothing came in is a costly habit.

Late filing carries a late fee of ₹50 per day (₹20 per day for a nil return), up to ₹5,000, plus interest at 18% per year on any late tax. None of that is your money coming back, so a missed nil return can quietly eat into the refund you're working so hard to claim.

So before you hit submit on RFD-01, walk the five points one more time: matching returns, the correct refund type, a PFMS-ready bank account, your FIRC, and exports in Table 6A. You can use Jeedle's free checker to sanity-test these, and Jeedle's invoice tool to keep your export invoices clean from the start so they land in the right place. And because the law here has genuine nuance, confirm your specific situation with a qualified CA before you file.

Frequently asked questions

What form do I file to claim a GST refund on exported services?

You file Form RFD-01 along with Statement 3, which carries your invoice and FIRC details. This applies whether you're claiming a refund of accumulated input tax credit on the LUT route or using the no-LUT refund route. You must file within 2 years of the relevant date.

Why is my GST export refund stuck for months?

Stalled export refunds almost always come down to five things: a mismatch between your GSTR-1 and GSTR-3B, choosing the wrong refund type in RFD-01, your bank account failing PFMS verification, a missing FIRC, or exports reported somewhere other than Table 6A of GSTR-1. Fix all five before filing.

Where do exports go in GSTR-1?

Exports are reported in Table 6A of GSTR-1, not in the B2B or B2CS sections. The refund system specifically looks at Table 6A to match your claim, so an export filed in the wrong box can stall your refund even when everything else is correct.

Do I have to file GST returns in a month with no income?

Yes. Nil returns are mandatory even when you've earned nothing. Skipping them triggers a late fee of ₹50 per day (₹20 per day for nil returns) up to ₹5,000, plus interest of 18% per year on any late tax.

What is an FIRC and why does my refund need it?

An FIRC, or Foreign Inward Remittance Certificate, is your bank's proof that payment genuinely came from abroad. For an export refund you submit FIRC details in Statement 3 of RFD-01. A missing FIRC is one of the common reasons refunds get stuck.

Check if I need GST →Make an export invoicePlain-English guidance, not personal tax advice. GST has grey areas — confirm with a qualified CA before acting.

More guides

Do I need GST registration as a freelancer with foreign clients?The LUT trap: file RFD-11 before 31 March, every year Getting paid in rupees can cost you 18% — here is why FIRC / e-FIRA: the proof you need for every foreign payment SAC codes for freelancers, in plain English