GSTN Enhances GST System for Order-Based Refunds: Key Updates to ASSORD Category

The Goods and Services Tax Network (GSTN) has recently issued an official advisory dated August 28, 2025, declaring enhancements in the GST system for Order-Based Refunds under the category “On account of Assessment/Enforcement/Appeal/Revision/Any Other Order” (ASSORD).

According to the earlier functionality of the GST system, taxpayers were not allowed to claim refunds under the stated category 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”. That means, earlier, if minor heads of demand had negative balances but the total was zero or positive, taxpayers were not permitted to claim refunds. However, now, according to the introduced changes, taxpayers are allowed to claim refunds even if the overall demand balance is zero or positive, as long as the minor head has a negative balance. This is not the only enhancement; there is a lot more.

These amendments in the GST system have resolved several long-pending issues faced by taxpayers over the years while claiming refunds against demand orders and have brought flexibility and clarity to the system.

Below are stated new amendments or enhancements introduced by GSTN to the refund system:

1. Refunds Allowed Irrespective of Demand Status

• Taxpayers are no longer required to wait till their Demand ID shows “Refund Due” status. Taxpayers can now claim refunds even if their Demand ID status is not “Refund Due”.

2. Refunds Can Be Claimed Even If Overall Demand is Zero/Positive

• Taxpayers can now claim refunds even if the overall demand balance is zero or positive, as long as the minor head has a negative balance.

3. Auto-Population of Refund Amounts

• Only negative balances will be auto-populated in Form RFD-01.
• Taxpayers are not allowed to claim refunds for any positive balances.

4. Automatic Order Number Suggestions

• According to the recent update, now the system will recommend the latest demand order linked to the negative balance, like an order-in-original, rectification order, or appellate order. This will reduce the chances of mistakes in filling in the details.

5. Tooltips for Better User Guidance

• Helpful tips are added near the Order No. and Demand ID fields to guide taxpayers in filling out the form correctly. These provide taxpayers with guidelines to fill in the correct details.