GST Advisory: System Enhancement for Order-Based Refunds.

The GST portal has recently implemented key changes to the refund functionality under the category “On account of Assessment/Enforcement/Appeal/Revision/Any Other Order (ASSORD)”. These enhancements address practical challenges faced by taxpayers and streamline the refund claiming process.

Background

Earlier, taxpayers could claim refunds under the ASSORD category only if:

• The cumulative amount of the Demand ID showed a negative balance (refund eligible).
• The status of the Demand ID was marked as “Refund Due.”

This meant that if individual components (minor heads) of a demand showed negative balances, but the overall balance was zero or positive, taxpayers were unable to claim refunds.

What’s New?

To resolve these concerns raised by taxpayers and tax officers, the system has now been updated with the following changes:

✅ Refunds allowed irrespective of Demand ID status – no restriction on “Refund Due” tagging.

✅ Refunds permitted even if cumulative balance is positive/zero, provided any minor head shows a negative balance.

✅ Auto-population of negative balances in the refund application (Form RFD-01); positive balances cannot be claimed.

✅ Order Number Suggestions – the system suggests the latest relevant order (Order-in-Original, rectification, or appellate order) linked with the negative balance.

✅ Tooltips for guidance – added near the Order No. and Demand ID fields to help taxpayers fill in details correctly.

Supporting Resources

• A comprehensive User Manual and FAQs will soon be published for step-by-step guidance.

Notification Reference: GSTN
28 /08/2025