GSTN Advisory, Dated 08-05-2025
The Goods and Services Tax Network (GSTN) has issued an important update to streamline the refund application process for specific categories of taxpayers. This change is aimed at simplifying compliance and enhancing the efficiency of refund disbursal under the GST regime.
1. Affected Categories
The revised refund process applies to the following categories –
- Export of services with payment of tax
- Supplies made to SEZ Unit/SEZ Developer with payment of tax
- Refund by supplier of deemed exports
These categories previously followed a tax period-based refund filing system.
2. Key Change – Shift from Tax Period-Based to Invoice-Based Filing
Under the updated system, taxpayers are no longer required to select a specific tax period while filing refund applications under the above categories. Instead, an invoice-based filing mechanism has been introduced, allowing more flexibility and accuracy in filing refund claims.
3. Invoice Locking Mechanism Introduced
As a part of the new process –
- Invoices submitted with a refund application will be locked in the system.
- Locked invoices cannot be modified or reused for future refund claims.
- The invoice will only be unlocked if the taxpayer withdraws the refund application or if a deficiency memo is issued by the officer.
This measure aims to prevent duplicate claims and ensure the integrity of the refund process.
4. Mandatory Upload of Invoices in Prescribed Format
To initiate the refund claim –
- Taxpayers must upload eligible invoices in the prescribed statement format, as mentioned in the advisory.
- Proper categorisation and accurate entry of invoice details are essential for successful processing.
5. Objective of the Revision
This update is designed to –
- Enhance transparency and accuracy in refund processing
- Reduce processing time by linking refund claims directly with individual invoices
- Prevent misuse or duplication of refund claims through system-enforced validations
