Major Update in GST Refund Filing Process
Major Update in GST Refund Filing Process
Effective May 8, 2025 The Goods and Services Tax Network (GSTN) has made some important and user-friendly changes in the way refunds can be filed under certain categories. These changes aim to simplify the process and reduce errors and delays.
Categories Covered by the Update
The new process applies to the following three refund categories:
- Export of Services with Payment of Tax
- Supplies Made to SEZ Unit/Developer with Payment of Tax
- Refund by Supplier of Deemed Export
What’s Changed?
1. No More Need to Select ‘Tax Period’
Earlier, taxpayers had to select a specific “From” and “To” tax period while filing for a refund. Now, this step has been removed. You can directly choose the refund category and click on “Create Refund Application” to begin.
2. Returns Must Be Filed Up-To-Date
Make sure all your GST returns (like GSTR‑1 and GSTR-3B) are filed up to the date of refund application. Otherwise, your application will not proceed.
3. From Tax Period-Based to Invoice-Based Filing
Refund filing is now based on invoices instead of tax periods. You will now upload eligible invoices directly under the correct statement:
- Statement 2 – For Export of Services with Payment of Tax
- Statement 4 – For SEZ Supplies with Payment of Tax
- Statement 5B – For Deemed Export refunds by Supplier
4. Invoices Will Be Locked
Once you upload invoices for a refund claim:
- They will be locked and cannot be used for another refund claim.
- They can only be unlocked if you withdraw the application or a deficiency memo is issued.
Why This Is Helpful
- The new system reduces mistakes related to wrong tax period selection.
- It allows greater flexibility and quicker refund application filing.
- It ensures that duplicate refund claims for the same invoices do not happen.