How We Unlocked ₹23 Lakhs in GST Refunds for a D2C Skincare Brand

July 2, 2025

Akash Roy

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The Problem Most Founders Don’t Even Know Exists When you’re running a fast-growing D2C brand, you’re heads-down on growth—inventory, sales, marketing, repeat customers. But somewhere in your balance sheet, you’re probably bleeding money silently.

That’s exactly what happened with one of our D2C skincare clients.

They came to us with a classic challenge: Working capital was tight. Despite strong sales and a healthy brand trajectory, cash flow was under stress.

How We Unlocked ₹23 Lakhs in GST Refunds for a D2C Skincare Brand

The Hidden Culprits Behind Their Cash Crunch. Once we dug into their tax stack, three silent killers emerged:

  • IGST on Imports Not Claimed: Their backend systems weren’t capturing input credit on imported raw materials.
  • Credit on Packaging + Transport Missed: Key credits on logistics, shipping, and packaging slipped through due to improper classification.
  • No Refund Strategy in Place: Despite being eligible, they weren’t filing refunds under relevant GST provisions.

Translation

They were unintentionally financing the government—with their own cash.

Our 3-Step Fix That Changed the Game

At Pitchers Global, we approach refunds like forensic accountants—meticulous and aggressive (where it matters).

Here’s what we implemented:

Automated Monthly GST Reconciliation

We deployed a system to sync sales, purchases, import data, and GST returns—every month, without fail.

Fixed Credit Classification Errors

Our experts mapped all GST-eligible spends—across packaging, freight, marketing, and storage—and correctly realigned them under Input Tax Credit (ITC) heads.

Filed Refund Under Rule 89(4B)

This underused provision allowed us to legally and efficiently apply for a refund of unutilized input tax credit due to zero-rated supply (exports without payment of tax).

The Outcome: ₹23 Lakhs Back in 72 Days

Result?

  • Refund processed.
  • Cash flow improved.
  • No aggressive follow-ups or escalations required.

Within 72 days, ₹23,00,000 landed back in their account—unlocking breathing room for inventory purchase and marketing push.

The Bigger Problem: You’re Probably Leaving Money on the Table Too

Most founders are so focused on topline growth, they overlook backend leakages. And most CAs? They’re filing returns, not digging for refunds.

Here are some GST leak points we routinely discover during our refund scans:

  • Reverse Charge Mechanism (RCM) on legal, tech, or consulting services
  • Platform fees from Amazon, Flipkart, etc.
  • Unclaimed credits on warehousing, packaging, and third-party logistics
  • Missed import IGST due to incorrect Bill of Entry linking

We’re Not Traditional Accountants. We’re GST Refunds Detectives.

At Pitchers Global, we don’t just “file” GST. We recover what’s rightfully yours.

We’ve built proprietary workflows for D2C and digital-first brands to plug GST leakages, optimize working capital, and fast-track legitimate refunds.

Want to Know What You’re Owed?

We offer a free audit scan for D2C brands and growth-stage businesses.

DM us “GST REFUND” or reach out via [email/contact form link] to see how much money you might be missing.

Final Word – GST Refunds

GST refunds aren’t just a compliance activity—they’re a capital unlock lever. If you’re not proactively mining your books for input credits, you’re funding someone else’s growth—not your own.

Let’s change that.

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