GSTN: Updates in Refund Filing Process for Deemed Export Recipients

By Author / May 9, 2025
GSTN Advisory – 2025

The GST Network (GSTN) has issued Advisory No. 601, dated May 08, 2025, announcing key changes in the refund filing process for recipients of deemed exports.

Key Changes in Refund Filing

GSTN has introduced the following updates under the category “On account of Refund by Recipient of deemed export”:

  • Chronological filing is no longer mandatory. Taxpayers are not required to select “From Period” and “To Period” while submitting refund applications.
  • Taxpayers must ensure that all relevant returns—such as GSTR-1 and GSTR-3B—are filed before applying for a refund.

Revised Table: “Amount Eligible for Refund”

GSTN has updated the table format under this refund category. Here’s a breakdown of each column:

  1. Balance in ECL at the Time of Filing
    This shows the Electronic Credit Ledger (ECL) balance under each head. It auto-populates during application.
  2. Net Input Tax Credit (ITC) of Deemed Exports
    Based on invoices uploaded in Statement 5B, this column auto-fills the ITC claimed under each major head.
  3. Refund Amount as per Uploaded Invoices
    It reflects the total claimed ITC across IGST, CGST, SGST, or UTGST. Taxpayers can edit this field downward, if necessary.
  4. Eligible Refund Amount
    This column calculates the maximum refundable ITC amount. It uses the rules defined in Circular No. 125/44/2019-GST, dated November 18, 2019.
  5. Refund Amount Not Eligible Due to Insufficient ECL Balance
    This shows the gap between the claimed ITC and the available balance under each head in the ECL.

Enhanced Functionality for Maximum Claim

GSTN has improved the system to help taxpayers claim the maximum possible refund. Now, the total ITC claim—based on invoices—is matched with the total ITC available, regardless of distribution across major heads. This ensures flexibility and accuracy in refund processing.

Final Advice to Taxpayers

Taxpayers should familiarize themselves with these changes. If any technical issues arise during refund filing, they can raise a grievance at the GST portal:
👉 https://selfservice.gstsystem.in/ReportIssue.aspx