Case File: How We Recovered ₹1.8 Cr GST Refund for a Transport Company

August 27, 2025

Akash Roy

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Most Transporters Are Leaving Crores on the Table — Here’s How Recovered ₹1.8 Cr GST Refund

When we think of GST refunds, we think of exporters.
Not transporters. Not logistics companies. Not warehouse operators.

But here’s the truth:

If your business is input-heavy (fuel, infra, leases) and output-exempt, you’re probably sitting on unclaimed refunds. And you don’t even know it.

We recently helped a transport client recover ₹1.8 Cr in stuck GST credits — and the results were a complete game-changer.

This blog breaks down the case, how we did it, and how you can check if you’re eligible for the same.

Case File: How We Recovered ₹1.8 Cr GST Refund for a Transport Company

Background: The Company

  • ₹50–60 Cr annual turnover
  • Asset-heavy transport operation
  • Regular investments in vehicles, depots, infra
  • Exempt output (transport of goods service under GTA rules)
  • Profitable on paper, but cash flow remained tight

The Core Problem

The business was:

  • Paying massive input GST on trucks, fuel, maintenance, and infra rentals
  • But not charging output GST (exempt category under GTA model)
  • So their Input Tax Credit (ITC) kept accumulating, month after month

They weren’t claiming refunds — because:

  • They thought they weren’t eligible
  • The documentation was a mess
  • Their CA had never suggested it

This is more common than you think.

Our Strategy: Clean Up, Match Up, File Right

We stepped in and rebuilt their GST refund application from scratch, with three key moves:

Input Mapping & Categorisation

We tracked every eligible input — across fuel, infra leases, vehicle CapEx, insurance, and vendor services — and matched them against the credit ledger.

Most of the input invoices were logged, but not structured for refund mapping.

Credit Ledger Optimisation

The company had a bloated electronic credit ledger — with ITC piling up. We restructured utilisation, reversed ineligible credits, and aligned the balance sheet for compliance-readiness.

This also ensured no refund overlaps — a key reason claims often get rejected.

Circular-Based Compliance Justification

We aligned the refund claim with GST circulars related to exempt output + input-heavy sectors, ensuring department-friendly language and supporting documents.

The filing had:

  • Proper input-output classification
  • Statement 5B accuracy
  • Vendor GSTR-1 reconciliation
  • CapEx justification trail

Timeline:

End-to-end time: 3 months
Final refund approved: ₹1.83 Cr credited


3 Signs You’re Eligible Too

Transport, logistics, warehousing, or even certain trading companies — check these:

High CapEx or Infra Spends?
If you’re buying trucks, renting depots, or upgrading IT infra — and paying GST — you may be eligible.

Input-Heavy, Output-Exempt Model?
You’re paying GST on inputs but not charging output tax (common under GTA). That leads to ITC buildup — and refund opportunity.

Missed Claims for Over a Year?
Many companies skip monthly claims and miss the 2-year refund window under Rule 89. We can still optimise what’s left.

Final Word: GST Isn’t Just a Cost — It Can Be a Cashflow Lever

If you’ve got lakhs (or crores) sitting in your credit ledger, you’re essentially giving the government an interest-free loan.

We’ve helped logistics clients, warehouse operators, and even service-based businesses unlock stuck cash from GST.

Don’t wait for notices. File pro-actively.

Recovered ₹1.8 Cr GST Refund – Want to Know What You Can Claim?

We’ll review your GST ledger and refund eligibility — within 24 hours.

DM us “Refund Audit” and our compliance team will do a no-obligation scan. Get in touch with Pitchers Global today!

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