GSTN Streamlines Refund Filing Process for Various Categories

The Goods and Service Tax Network (GSTN), a non-profitable, non-government organization that regulates the entire IT system of the GST portal, has introduced some crucial changes in the refund filing process in some major categories. These changes are expected to significantly change the application process and enhance the overall efficiency of refund disbursals. The key changes are seen as a welcome move for the taxpayers as they will streamline the refund filing process for certain categories.

When it comes to the refund categories, GSTN has brought key changes in the following categories;

1. Export of Services with payment of tax
2. Supplies made to SEZ Unit/SEZ Developer with payment of tax
3. On account of Refund by Supplier of Deemed export

For these categories, there is no requirement to select a specific tax period (From and To) while filing refund application as it’s been improved completely. As a result, the taxpayers can directly proceed further by selecting the refund category from the above list followed by clicking on ‘Create Refund Application’.

Taxpayers must also ensure that any of the returns such as GSTR-1, GSTR-3B etc., if due till the date of refund application, are filed.

The said refund categories are changed from ‘Tax Period based filing’ to ‘Invoice based filing’. The taxpayers are now able to upload the eligible invoices to claim refund in the statements listed below;

• Export of Services with payment of Tax (Statement 2)
• SEZ Supplies with payment of Tax (Statement 4)
• In case of Deemed Exports, the applicability by the Supplier (Statement 5B)

Once uploaded, the invoices with a refund application will be locked for any further amendment and will not be available for any subsequent refund claims. The mentioned invoices will be unlocked only in the condition where the refund application is withdrawn or a deficiency memo is issued.

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