Read the new order rule before closing the claim
From 1 November 2026, rule 22 of Notification 05/2026–Central Tax inserts Rule 92(1B). For refunds due and payable under section 54 read with section 49(6), the common portal generates FORM GST RFD-06 showing the amount sanctioned, adjustment against outstanding demand under the Act or other law in force, and the balance refundable. This guide focuses on an eligible unused electronic cash-ledger balance. It does not treat every ledger balance as eligible or every pending demand as available for adjustment.
Read the applicable text: Gazette of India, Notification 05/2026–Central Tax, rules 1, 21 and 22 (archived Gazette text) India Code, CGST Act sections 49 and 54, read with later amendments.
Keep entitlement and disbursement separate
Use the refund application and ledger movement to confirm the actual eligible balance. Compare that with the amount sanctioned in RFD-06. Match the demand amount and identifiers shown in the order to the operative demand and recovery records before accepting an adjustment. Review disputes, payments, stays or mismatches under the applicable provisions. Do not automatically infer a restriction from a mere notice, or an entitlement to refund from a ledger snapshot.
Verify RFD-05 and bank credit independently
The substituted Rule 92(4) covers amounts payable to the applicant under section 54(8) in the listed cases, including Rule 92(1B). It provides for RFD-06 and a payment order in FORM GST RFD-05, with electronic credit to the registered bank account specified in the refund application on the basis of consolidated payment advice. Keep the final cash-ledger refund process separate from the wording of Rule 91(3) for provisional refund.
Reconcile three different balances
Maintain lines for the amount claimed, the sanctioned amount, the lawful adjustment, the net amount due, the amount ordered for payment and the actual receipt. Do not post bank cash on the basis of a sanction alone. A demand adjustment may reduce the cash due while also requiring a separate reconciliation of the demand balance.
Treat anomalies as exceptions before closing
Where the bank amount is absent, partial or inconsistent, inspect the portal status and designated account, retain the order and bank evidence and pursue the applicable correction route. Do not manufacture a second application to clear an unexplained difference. Confirm the amendment's application to the claim and live portal evidence for the period.
Six worked illustrations
All facts and amounts are fictional. Calculations illustrate the stated assumptions, not a predetermined legal outcome.
Illustrative example 1: Order without an adjustment
An eligible ₹80,000 is claimed and sanctioned. No demand adjustment is shown. RFD-05 and bank credit are each ₹80,000, giving no pending disbursement on the assumed evidence.
Illustrative example 2: Sanction differs from claim
A ₹1.20 lakh claim leads to sanction of ₹1 lakh with no adjustment. The ₹20,000 difference belongs to the claim-to-sanction bridge, not the outstanding bank receipt if ₹1 lakh is paid.
Illustrative example 3: Demand adjustment reduces cash
RFD-06 sanctions ₹1.40 lakh and shows a verified ₹35,000 adjustment. The net due is ₹1.05 lakh; trace that amount to RFD-05 and the bank, and reconcile ₹35,000 to the demand records.
Illustrative example 4: Full adjustment on the stated facts
A sanction of ₹62,000 is fully applied to a verified outstanding demand of at least that amount. The balance refundable in cash is nil; do not book a ₹62,000 bank receipt.
Illustrative example 5: Payment evidence is short
An order shows ₹94,000 net payable, and available bank evidence shows ₹74,000 received. The unresolved bank difference is ₹20,000. Check whether it is timing, a failed payment or a mismatch.
Illustrative example 6: Demand record has an unexplained difference
The portal order shows ₹28,000 adjusted but the operative demand record supports only ₹18,000 on the facts provided. Investigate the ₹10,000 difference; do not certify the adjustment merely because the payment amount matches the order.
Ten-step verification table
| Step | Action | Evidence |
|---|---|---|
| 1 | Identify the refund category | Application and statutory basis |
| 2 | Reconcile ledger and claim amount | Cash-ledger and application records |
| 3 | Confirm applicable amended rule | Notification and processing facts |
| 4 | Download the portal sanction | RFD-06 and identifiers |
| 5 | Separate claim and sanction differences | Amount and reasons reconciliation |
| 6 | Validate every demand adjustment | Operative demand, payment and stay evidence |
| 7 | Verify the net refund | Order calculation |
| 8 | Trace the payment order and account | RFD-05 and designated registered account |
| 9 | Match actual bank receipt | Bank statement and payment reference |
| 10 | Resolve and archive exceptions | Status, response and closing working |
Sixteen practitioner FAQs
1. What did Rule 92(1B) add?
A portal-generated RFD-06 order for the specified section 49(6) refund case.
2. When did the amendment take effect?
1 November 2026 under the notification's general commencement.
3. Does all unutilised ITC qualify as unused cash?
No. Identify the actual ledger and legal refund basis.
4. Does RFD-06 prove cash was paid?
No. It evidences sanction and adjustment; verify payment separately.
5. What should the new order show?
The sanctioned amount, demand adjustment and balance refundable.
6. Does any pending notice justify an adjustment?
Verify the operative demand and applicable law; do not equate a notice with an established amount.
7. How is a disputed adjustment handled?
Preserve the demand and order evidence and assess the appropriate response or correction route.
8. Does a full adjustment create bank credit?
A full adjustment leaves no balance payable in cash.
9. Which form evidences the final payment order?
FORM GST RFD-05 under the applicable Rule 92(4) process.
10. Is the provisional-refund wording a substitute for Rule 92(4)?
No. Rule 91(3) concerns a separate provisional process.
11. Which bank account should be matched?
The eligible registered account specified in the refund application under the rule.
12. Can sanction and payment amounts differ?
Yes. Trace adjustment and the actual payment evidence separately.
13. What if RFD-05 is present but no bank credit appears?
Check payment status, account and bank evidence before closing the amount.
14. What if the sanction is lower than the claim?
Document the separate claim-to-sanction variance and the available remedy if disputed.
15. Does a refund order itself prove the demand ledger changed?
Verify the adjustment against the actual demand records.
16. What closes the file?
A complete bridge from application to sanction, adjustment, payment order and actual receipt.
Official sources
Gazette of India, Notification 05/2026–Central Tax, rules 1, 21 and 22 (archived Gazette text) India Code, CGST Act sections 49 and 54, read with later amendments