Advisory on the System Enhancement for Order-Based Refunds
- Taxpayers could claim refund under the category “On account of Assessment/Enforcement/Appeal/Revision/Any Other Order (ASSORD)”.
- But refund was possible only if:
- The Demand ID (the tax demand reference number) showed an overall negative balance (i.e., refund due).
- The status of the Demand ID was “Refund Due”.
👉 Problem: If some minor heads (like tax, interest, penalty, fee, etc.) had a refund (negative balance), but the overall balance was zero or positive, the system did not allow refund claims.
This created hardship since taxpayers couldn’t claim refunds that were legitimately due.
Now, the portal has been updated to fix this issue:
- Refund claim not restricted by Demand ID status
- Even if the Demand ID doesn’t show “Refund Due”, refund can still be claimed.
- Refund possible despite overall balance
- Even if the cumulative balance is zero or positive, taxpayers can claim refund for any negative balance in minor heads.
- Auto-population of only negative balances
- In Form RFD-01 (refund application), only negative amounts will be picked up automatically.
- Taxpayers cannot claim refund for the positive part.
- Order Number suggestions
- The system will automatically suggest the latest relevant order (like assessment order, rectification order, appellate order, etc.) linked to that refund claim.
- Tooltips for guidance
- Help texts are added near Order No. and Demand ID fields so taxpayers don’t enter wrong details.
Next Steps
- A user manual and FAQs will be released soon.
- If there’s any issue, taxpayers can raise a ticket with the GST helpdesk.
✅ In short: Earlier, you could only get refund if the entire demand was negative. Now, you can get a refund for any negative portion (minor head), even if the total is positive/zero. The system will guide you better and pick only eligible refund amounts.
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
