New Process of GST Refund Filing

GSTN Introduces Major Procedural Changes in Refund Filing for Select Categories : The Goods and Services Tax Network (GSTN) has recently rolled out important procedural updates to the refund application process under the GST regime. These changes are applicable to select categories and are designed to simplify the process, enhance accuracy, and promote an invoice-based system rather than a tax-period-based approach.

Categories Affected: The updates apply to the following refund categories:

• Export of Services with Payment of Tax

• Supplies made to SEZ Unit/SEZ Developer with Payment of Tax

• Refund by Supplier of Deemed Exports

New GST Refund Process: Streamlining and Simplifying

KEY PROCEDURAL UPDATES

1. Elimination of Tax Period Selection: Taxpayers are no longer required to select a specific ‘From’ and ‘To’ tax period when filing refund claims under the aforementioned categories.

➡️ New Process: Simply choose the appropriate refund category and click on “Create Refund Application” to begin.

2. Mandatory Filing of Returns Before Refund Application All relevant GST returns, specially GSTR-1 and GSTR-3B, must be filed up to the date of the refund application.

Important: Refund applications will not be processed if there are any pending return filings.

3. Transition to Invoice-Based Refund Filing: The refund process has now become invoice-centric. Taxpayers must upload eligible invoices in the designated statement formats while submitting their refund applications.

Note:

• Once invoices are uploaded in a refund application, they are locked.

• Locked invoices cannot be reused for other refund claims unless:

  • The application is withdrawn, or

  • A deficiency memo is issued by the department.

SUMMARY & ACTION POINTS FOR TAXPAYERS

• No need to select tax periods for the specified refund categories.

• Ensure all relevant GST returns are filed before initiating a refund claim.

• Accurately prepare and upload invoice data in the prescribed statement formats.

• Double-check invoice entries before submission—as locked invoices cannot be amended or reused unless the application is withdrawn or found deficient.