Updates in Refund Filing Process for various refund categories.
🔁 1. Applicable Refund Categories
These changes apply only to three specific refund categories under GST:
- Export of Services with payment of tax
- Where a service exporter pays IGST on export and later claims a refund.
- 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.
- 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:
| Refund Category | Statement to Upload Invoices |
|---|---|
| Export of Services with tax | Statement 2 |
| SEZ supplies with tax | Statement 4 |
| Deemed Exports (Supplier) | Statement 5B |
🔒 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- The refund application is withdrawn, or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.
Also Read:
- Recommendations of the 55th Meeting of the GST Council
- Changes in GST and Income Tax during the Financial Year 2024-25
- TDS and TCS provisions applicable from April 1, 2025
- 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
