The Goods and Services Tax Network (GSTN) has recently implemented significant changes in the refund filing mechanism, aimed at improving the efficiency and accuracy of the process. These updates are particularly relevant for taxpayers filing refunds under specific categories.
Key Refund Categories Affected
The changes apply to the following refund categories:
Export of Services with payment of tax
Supplies made to SEZ Unit/SEZ Developer with payment of tax
Refunds filed by the supplier in case of Deemed Exports
Removal of Tax Period Requirement
One of the major changes is the elimination of the need to select a specific tax period (‘From’ and ‘To’) while filing refund applications for the above categories. Taxpayers can now:
Simply select the applicable refund category
Click on “Create Refund Application” without specifying a time range
This modification simplifies the user experience and minimizes filing errors related to incorrect tax periods.
Mandatory Compliance Before Filing
Taxpayers are reminded that all relevant GST returns, including GSTR-1 and GSTR-3B, must be filed up to the date of refund application. Refund applications will not be accepted if any pending returns are due.
Shift to Invoice-Based Filing
The most notable change is the transition from Tax Period Based Filing to Invoice Based Filing for the specified categories. Taxpayers are now required to upload eligible invoices under the following statement formats:
Statement 2: Export of Services with Payment of Tax
Statement 4: SEZ Supplies with Payment of Tax
Statement 5B: Deemed Exports (filed by Supplier)
Important Note:
Once an invoice is uploaded and submitted with a refund application:
It gets locked for further amendment.
It cannot be used in any other refund claim.
The invoice will be unlocked only if the refund application is withdrawn or if a deficiency memo is issued by the tax officer.
What This Means for Taxpayers
These updates are designed to bring more clarity, prevent duplication of refund claims, and streamline the refund verification process. However, businesses must now ensure greater diligence in invoice selection and data accuracy during the refund application process.
Notification Reference: GSTN
08/05/2025