Updates in Refund Filing Process for Recipients of Deemed Export

Good news for businesses claiming GST Refund on deemed export! The GST Network (GSTN) has made the refund process simpler and more user-friendly. Here's a detailed overview of the updates:

1. No More Chronological Filing of Refund Applications

The update is the removal of the requirement to file a GST Refund claim in chronological order of tax periods. Taxpayers are no longer required to select “From Period” and “To Period” while submitting refund applications under this category. This allows businesses to claim GST Refund more efficiently and in line with their accounting practices.

2. Mandatory Filing of Returns Before Refund Application

Taxpayers must ensure that all returns (GSTR-1, GSTR-3B, etc.) are filed up to the date of the GST Refund application.

3. Revised Refund Table Format: Key Changes Explained

The table titled Name “Amount Eligible for Refund” has been redesigned for better clarity and calculation accuracy. Here's a breakdown of the updated columns:

Col. 1: Balance in ECL at the time of filing – Auto-populated values showing available credit in the Electronic Credit Ledger (ECL) under each head (IGST/CGST/SGST).

Col. 2: Net ITC of Deemed Exports (as per uploaded invoices) – Auto-calculated based on invoices reported in Statement 5 B.

Col. 3: per Uploaded Invoices – Represents the total ITC claimed based on invoices. This field is downward editable for flexibility.

Col. 4: Eligible Refund Amount – Automatically computed as per the prescribed debit order mentioned in Circular No. 125/44/2019-GST, dated 18.11.2019.

Col. 5: Refund Amount Not Eligible due to Insufficient ECL Balance – Displays the shortfall between claimed ITC and actual balance available in the ECL.

4. Enhanced Functionality to Maximize Refund Claim

The system now allows taxpayers to claim the maximum possible refund based on invoice data, even if sufficient balances are not available under specific heads. The refund eligibility will now be determined based on aggregate ITC across all heads (IGST, CGST, SGST) rather than strictly matching each head individually.

If you're dealing with a GST Refund for deemed export, we can help make the process easy and fast for you. Claim your GST Refund with India’s #1 automated GST refund platform — fast, simple, and reliable!

Conclusion

These changes mark a progressive step towards simplifying GST refund procedures for deemed export recipients. With auto-populated data, relaxed chronology requirements, and a revamped eligibility table, businesses can expect a more intuitive and efficient refund experience. Make sure to stay compliant with return filings to take full advantage of these improvements.