In a recent update, the Goods and Services Tax Network (GSTN) has introduced several enhancements to the refund filing process under the category “Refund by Recipient of Deemed Export”. These changes aim to streamline procedures and improve user experience for taxpayers involved in deemed export transactions. Below is a simplified breakdown of the major updates:
1. No More Chronological Filing Required
Taxpayers are no longer required to file refund applications in the chronological order of tax periods. This means the "From Period" and "To Period" fields are no longer necessary while applying for refunds under this category.
2. Mandatory Return Filing
Before filing a refund claim, taxpayers must ensure that all relevant GST returns, such as GSTR-1 and GSTR-3B, have been duly filed up to the date of the refund application.
3. Revised Table: “Amount Eligible for Refund”
The structure of the refund claim table has been updated with five key columns:
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Col. 1: Balance in ECL at the Time of Filing
This auto-filled column shows the balance under each head (IGST, CGST, SGST, etc.) in the Electronic Credit Ledger (ECL) at the time of application. -
Col. 2: Net ITC on Deemed Exports
Auto-populated based on invoices uploaded in Statement 5B, this reflects the claimed Input Tax Credit (ITC) for deemed exports. -
Col. 3: Refund Amount as per Invoices
Displays the total ITC claimed as per the uploaded invoices. This field is editable but only downward. -
Col. 4: Eligible Refund Amount
Shows the maximum refundable ITC, auto-calculated per the debit order guidelines laid out in Circular No. 125/44/2019-GST, dated 18.11.2019. -
Col. 5: Refund Not Eligible Due to Insufficient ECL Balance
Reflects the difference between the claimed ITC and the available ECL balance across various tax heads.
4. Optimized Refund Processing
The refund system has been enhanced to maximize claimable amounts, ensuring that even if the ECL doesn’t have sufficient balance under a specific head, the total eligible ITC across heads can still be considered for refund purposes.
5. Taxpayer Advisory
All taxpayers falling under this category are strongly advised to review these changes. If any issues arise during the filing process, a grievance may be submitted through the GST Self-Service Portal.
Disclaimer:
This blog post is auto-generated and is intended for informational purposes only. For personalized tax guidance, it is recommended to consult a certified GST practitioner or legal advisor or CA /CS.
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