Updates in Refund Filing Process for various refund categories

Updates in Refund Filing Process for various refund categories.

🔁 1. Applicable Refund Categories

These changes apply only to three specific refund categories under GST:

1. Export of Services with payment of tax
   • Where a service exporter pays IGST on export and later claims a refund.
2. Supplies made to SEZ Unit/SEZ Developer with payment of tax
   • When a registered person supplies goods or services to a Special Economic Zone and pays IGST, they can claim a refund.
3. Deemed Exports (Refund by Supplier)
   • For supplies considered “deemed exports” (like supplies to EOUs), where the supplier applies for a refund of taxes paid.

🆕 2. Major Changes Introduced

a. No More Tax Period Selection

• Earlier, taxpayers had to choose a specific period (From–To) while filing refund claims.
• This requirement has now been removed for the above categories.
• Taxpayers can now directly:
  • Select the refund category.
  • Click “Create Refund Application” without specifying any period.

b. Shift to Invoice-Based Filing

• Refund filing has changed from a tax period-based system to an invoice-based system.
• This means:
  • You upload invoices individually.
  • Refunds are calculated and claimed based on those uploaded invoices, not by summarizing a whole period’s data.

📄 3. Statements to be Used for Invoice Uploads

When filing the refund application, invoices must be uploaded in specific statements depending on the refund category:

🔒 4. Invoice Locking Mechanism

Once invoices are uploaded in a refund application:

• They get locked — you can’t edit, amend, or reuse them for any other refund application.
• They remain locked until:
  • The refund application is withdrawn, or
  • A deficiency memo is issued by the tax officer.

This change ensures that the same invoice isn’t used to claim refund multiple times.

📌 5. Pre-Condition: All Returns Must Be Filed

Before submitting any refund application under these categories:

• The taxpayer must have filed all due returns (e.g., GSTR-1, GSTR-3B) up to the date of the refund application.
• Failing to file returns will block the refund process.

Source

Also Read:

1. Recommendations of the 55th Meeting of the GST Council
2. Changes in GST and Income Tax during the Financial Year 2024-25
3. TDS and TCS provisions applicable from April 1, 2025
4. Rationalizing TDS: A Deep Dive into Budget 2025’s Proposals

Go To Memorandum

Go To Finance Bill 2025

Read More on Union Budget 2025

CA Cult YouTube: 
1. TCS Credit of minor in the hands of Parent | Clubbing | Union Budget 2024
2. Calculation of Income Tax FY 2024-25 | Old vs New Regime | For Salaried Employees

Read More on GST, CBIC