Update on Refund Filing Process for Recipients of Deemed Exports

The Goods and Services Tax Network (GSTN) has introduced the following updates to the refund filing process for recipients of deemed exports:

1. No Chronological Order Requirement: Taxpayers are no longer required to file refund applications in chronological order of tax periods. This means taxpayers are not required to specify the "From Period" and "To Period" while submitting the refund application.

2. Return Filing Requirement: It is mandatory for taxpayers to ensure that all returns (such as GSTR-1, GSTR-3B, etc.) due up until the date of the refund application are filed.

3. Modification in Refund Table: The "Amount Eligible for Refund" table has been revised. The new columns are as follows:

   • Col. 1: Balance in Electronic Credit Ledger (ECL): This reflects the available balance under various heads in the ECL at the time of filing the refund application and will be auto-populated.

   • Col. 2: Net ITC of Deemed Exports: This column will auto-populate the claimed ITC amount for each major head based on invoices uploaded in Statement 5B.

   • Col. 3: Refund Amount per Uploaded Invoices: Displays the sum of ITC claimed under all heads (IGST/CGST/SGST/UT) based on invoices in Statement 5B. This column is editable.

   • Col. 4: Eligible Refund Amount: This column auto-calculates the maximum refund claimable, based on the debit order outlined in Circular No. 125/44/2019-GST dated 18.11.2019.

   • Col. 5: Ineligible Refund Amount Due to Insufficient Balance: Displays the difference between the claimed ITC and the available ITC balance in the ECL for each head.

4. Improved Functionality for Refund Maximization: The system now enhances the claim process by comparing the total claimed ITC under various heads (IGST, CGST, SGST) with the available ITC balance, allowing taxpayers to maximize their refund claims, even if there isn't enough balance in specific heads.

5. Grievance Handling: Taxpayers facing issues during the refund filing process are advised to raise a grievance on the GST portal. For assistance, visit: Grievance Reporting Portal.

Taxpayers are encouraged to review these changes carefully to ensure smooth refund filing.

 

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