Blog No. 86: Simplification of GST Refund Filing Process on GSTN Portal (w.e.f. 08.05.2025)

The Goods and Services Tax Network (“GSTN”) has introduced significant updates in the refund filing process, to simplify and streamline the refund process for taxpayers, in following categories:

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 Export

Key Updates

1. Removal of Tax Period Selection: Taxpayers are no longer required to select a specific tax period (‘From’ and ‘To’) when filing refund applications under above categories. The process now allows direct selection of refund category and initiation of the application.

2. Mandatory Return Filing: All relevant GST returns (such as GSTR-1, GSTR-3B, etc.) must be filed up to the date of the refund application. Failure to do so may result in the refund application being invalid or rejected.

3. Transition to Invoice-Based Filing: The refund process has shifted from tax period-based to invoice-based filing. Taxpayers must now upload eligible invoices directly in the following statements and claim refunds accordingly:

4. Invoice Locking Mechanism: Once invoices are uploaded with a refund application, they are locked and cannot be amended or used in subsequent refund claims. Invoices will only be unlocked if the refund application is withdrawn or a deficiency memo is issued.

5. No Chronological Filing Required: Refund applications do not need to be filed in chronological order. This provides flexibility and removes the earlier filing requirement based on tax periods.

These updates are expected to enhance the efficiency and transparency of the GST refund process for exporters, SEZ suppliers, and deemed export transactions.