GST System Upgrade: GSTN Enhances System to Simplify Order-Based Refunds for Taxpayers

The Goods and Services Tax Network (GSTN) has recently issued an advisory dated August 28, 2025, announcing enhancements in the GST system for Order-Based Refunds. According to the existing functionality of the system, taxpayers could only claim refunds under the category “On account of Assessment/Enforcement/Appeal/Revision/Any Other Order” (ASSORD) under two conditions, i.e., if the total balance of their Demand ID is negative and the status of the Demand ID was “Refund Due”. Meaning, previously, if minor heads of demand had negative balances but the total was zero or positive, taxpayers were not allowed to claim refunds.

For a long period, the GST department had been receiving complaints from taxpayers that they were unable to claim refunds due to the aforementioned functionality of the system. Considering that this department has decided to implement a few significant changes in the system. These changes are as follows:

• Taxpayers can now claim refunds even if the overall demand balance is zero or positive, as long as any part (minor head) has a negative balance.
• Now, taxpayers are no longer required to wait till their Demand ID shows “Refund Due” status.
• When filling the refund form (Form RFD-01), only the negative balances will be automatically filled, so you can’t claim money you don’t have.
• The system will automatically recommend the most recent demand order associated with a negative balance, such as order-in-original, rectification order or appellate order, etc.
• Helpful tips are added near the Order No. and Demand ID fields to guide you in filling out the form correctly.

A detailed user guide and FAQs will be shared soon. If you face any problems or technical issues, you can raise a ticket with the GST helpdesk.