Updates in Refund Filing Process for various Refund Categories: Read GSTN Advisory

In a significant move aimed at streamlining the refund process for taxpayers, the Goods and Services Tax Network (GSTN) has announced important changes in the filing procedure for three key refund categories through an advisory:

1. Export of Services with payment of tax

2. Supplies made to SEZ Unit/SEZ Developer with payment of tax

3. Refund by Supplier of Deemed Exports

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Under the revised system, taxpayers are no longer required to select a specific tax period ('From' and 'To') when filing refund applications under these categories. Instead, they can directly choose the relevant refund category and initiate the process by clicking on the “Create Refund Application” button.

GSTN has also reminded that all relevant returns, including GSTR-1 and GSTR-3B, must be filed up to the date of the refund application to be eligible for processing.

A major procedural shift is the transition from 'Tax Period based filing' to 'Invoice based filing' for these categories. Taxpayers will now need to upload eligible invoices under the following statements:

 Statement 2: Export of Services with payment of tax

 Statement 4: SEZ Supplies with payment of tax

 Statement 5B: Deemed Exports – Application by Supplier

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It is important to note that once invoices are uploaded with a refund application, they will be locked and cannot be amended or reused for any future refund claims. These invoices will only be unlocked in the event of a withdrawal of the refund application or issuance of a deficiency memo.

The changes are expected to reduce errors and enhance transparency in the refund claim process.

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