For the GST refund filing process, GSTN has announced an update under the category “On account of Refund by Recipient of Deemed Export”, aimed at easing the process and rectifying the taxpayer’s experience.
Main Key Highlights
Here are some important key highlights of GST refunds for recipients of deemed exports:-
Compulsory GST Return Filing
Taxpayers should file all returns like GSTR-1, GSTR-3B, and others due up to the date of filing the refund application are duly submitted.
No Demand for Chronological Filing
There is no need for the taxpayers to refund the application in the chronological order of tax periods. It signifies that the “From Period” and “To Period” selections are no longer obligatory, offering flexibility in filing.
Modified GST Refund Table Structure
The table “Amount Eligible for Refund” has been revised with the following columns:
- Net GST ITC of Deemed Exports (as per uploaded invoices): Auto-populated ITC claimed from invoices in Statement 5B.
- GST refund amount as per uploaded invoices: Sum of claimed ITC across IGST, CGST, SGST, UTGST, downward editable.
- Balance in ECL at time of filing: Auto-populated balance in the Electronic Credit Ledger under various heads.
- Suitable GST Refund Amount: Maximum ITC eligible for refund, auto-calculated under Circular No. 125/44/2019-GST dated 18.11.2019.
- GST refund amount not eligible due to inadequate ECL balance: Distinction between claimed ITC and available ITC in the ledger.
Improved Functionality
Based on uploaded invoices, the system has been rectified to maximise refund claims even if sufficient balance is not available under individual heads of the Electronic Credit Ledger. The total claimable amount will now be matched against the total ledger balance across all heads.
Grudge Redressal
Through the GST portal at https://selfservice.gstsystem.in/ReportIssue.aspx, Taxpayers facing issues can raise grievances.
Such amendments are anticipated to ease the compliance and accelerate the GST refund for the recovery of considered exports. The taxpayers are advised to educate themselves on the new procedure to ensure smooth filing.
