Faster GST Refunds From November 2026: Changes in Rules 89 to 92
GST refund changes from 1 Nov 2026: 10-day acknowledgement, RFD-04 in 3 working days, 1.5 times limit removed, new documents from 1 Dec 2026.
Key takeaways: gst refund changes
- GST refund changes in Rules 89 to 92 apply mostly from 1 November 2026.
- Acknowledgement or deficiency memo within ten days, failing which the application is deemed acknowledged.
- The portal generates the provisional refund order (RFD-04) within three working days of acknowledgement.
Table of contents
The CGST (Amendment) Rules, 2026 (Notification No. 05/2026-Central Tax, 26 October 2026) amend Rules 89, 90, 91 and 92 to make GST refunds faster and more automated. Most of these changes apply from 1 November 2026. Some parts of Rule 89 apply from 1 December 2026 and 1 April 2027, as noted below.
What changes, rule by rule
| Rule | Change | From |
|---|---|---|
| Rule 90 (acknowledgement) | The period for the proper officer to issue the acknowledgement (FORM GST RFD-02) or deficiency memo (FORM GST RFD-03) is ten days, down from fifteen. If neither is issued within ten days, the application is deemed acknowledged, and the section 54(7) time limit runs from the filing date. | 1 Nov 2026 |
| Rule 91 (provisional order and payment) | The portal generates the provisional refund order (FORM GST RFD-04) within three working days of acknowledgement, without revalidation by the proper officer. The payment order (RFD-05) may be made available through the common portal. | 1 Nov 2026 |
| Rule 92 (refund orders) | Where a refund is due after adjustment against outstanding demands under section 49(6), the portal generates an RFD-06 order showing the amount adjusted and the balance refundable. Refunds under section 54(8) are credited to the applicant’s registered or application bank accounts on a consolidated payment advice. | 1 Nov 2026 |
| Rule 89(3) (debit order) | Integrated tax is debited first. Central tax and State/UT tax are debited equally, with any shortfall in one drawn from the other. | 1 Nov 2026 |
| Rule 89(4)(C) | The “1.5 times” alternative is removed from the computation for zero-rated supplies. | 1 Nov 2026 |
| Rule 89(5) | The formula uses “Net ITC”. “Eligible input services” means services on which credit is availed on or after 1 November 2026. | 1 Nov 2026 (as stated in the rule) |
| Rule 89(2) (documents) | Expanded list of documents with the application, including a statement of invoices received and a declaration on prosecution where tax evaded exceeds ₹2.5 crore (₹250 lakh) over five years. | 1 Dec 2026 |
| Rule 89 (capital goods) | Capital goods credit attributable to the relevant period is brought into the computation on a 60-month formula, with a declaration on capital goods used for zero-rated or inverted-rated supplies. | 1 Apr 2027 |
The references to filing through a Facilitation Centre notified by the Commissioner are removed from Rule 89(1) and (1A).
What this means in practice
- Exporters and businesses with inverted-rated supplies should expect shorter acknowledgement timelines, but must keep their documents ready, since the document list expands from 1 December 2026.
- Deficiency memos must be issued within ten days; check the portal regularly so that any RFD-03 is answered promptly.
- Review how your refund working treats input services and capital goods, because the formula changes in two stages (1 November 2026 and 1 April 2027).
See also our overview of the CGST Amendment Rules 2026 and our guide to ITC conditions and time limits. Need help with a refund claim? See our GST services.
What to do next about gst refund changes
Review how gst refund changes affects your business: note the effective date, check your records and software, brief your team and keep a copy of the official text on file. Where the position is unclear for your case, take professional advice before filing or changing your process.
Official sources for gst refund changes
Always read the original text. You can find notifications, circulars and rules on the CBIC Tax Information Portal and file returns and applications on the GST Portal. This guide on gst refund changes is a summary and is not a substitute for the official text.
Frequently asked questions
What is the new time for acknowledgement of a refund application?
Ten days. If no acknowledgement or deficiency memo is issued within ten days, the application is deemed acknowledged.
How soon is the provisional refund order generated?
The portal generates FORM GST RFD-04 within three working days of acknowledgement, without the proper officer revalidating it.
Is the “1.5 times” limit still in the refund formula?
No. It is removed from Rule 89(4)(C) from 1 November 2026.
This article is for general information only and is not tax, legal or financial advice. It is based on the text of the notification or circular as published by CBIC. Rules, rates and criteria change, so confirm the latest position with the official source or a professional before acting.
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