GSTN Advisory, Dated 08-05-2025
The Goods and Services Tax Network (GSTN) has announced a significant update to the refund application process for recipients of deemed exports. The changes are introduced under the category titled ‘On account of Refund by Recipient of deemed export’, aimed at simplifying the process and enhancing user experience.
1. Removal of Mandatory ‘From’ and ‘To’ Periods
One of the key revisions is the elimination of the requirement to specify the ‘From Period’ and ‘To Period’ while filing refund claims under this category. This change allows applicants to –
- File refund claims non-chronologically, i.e., in any order, irrespective of tax periods.
- Gain greater flexibility in choosing which invoices or periods to include in a particular application.
However, taxpayers must ensure that all relevant returns—particularly GSTR-1 and GSTR-3B—are duly filed up to the date of filing the refund application. Failure to do so may result in the application being rejected or returned with deficiencies.
2. Auto-Population of ‘Amount Eligible for Refund’ Table
To facilitate accuracy and reduce manual errors, the ‘Amount Eligible for Refund’ table has been revamped. It now includes auto-populated fields, showing the following details –
- Balance available in the Electronic Credit Ledger (ECL)
- Net Input Tax Credit (ITC) availed from deemed export supplies
- Refund amount eligibility, calculated in accordance with Circular No. 125/44/2019-GST, dated 18-11-2019
This enhancement provides a comparative view of ITC under IGST, CGST, and SGST against the ECL balance, helping applicants to accurately determine and validate their refund claims.
3. Streamlined Compliance and Enhanced Transparency
These changes are part of GSTN’s ongoing efforts to –
- Simplify the refund application process for deemed export recipients
- Enhance transparency and accuracy through system-driven validations
- Minimise errors and rejections due to misreported data or missing information
