GSTN updates system validation for GST Refund Filing by QRMP Taxpayers: IFF Invoices issue resolved

The Goods and Services Tax Network, on June 10, 2025, released a very important update regarding system validation for the filing of GST refund applications on the GST portal for QRMP taxpayers. As per the update, if the taxpayer has filed all required returns that were due till the date of filing the refund application, the GST system will allow them to file the refund application.

This validation was deployed in the month of May 2025.

The validation was deployed in line with provisions outlined in Para 6 of Circular No. 125/44/2019-GST dated 18.11.2019. According to the said circular:

“Any refund claim for a tax period may be filed only after furnishing all the returns in FORM GSTR-1 and FORM GSTR-3B which were due to be furnished on or before the date on which the refund application is being filed. However, in case of a claim for refund filed by a composition taxpayer, a non-resident taxable person, or an Input Service Distributor (ISD), furnishing of returns in FORM GSTR-1 and FORM GSTR-3B is not required. Instead, the applicant should have furnished returns in FORM GSTR-4 (along with FORM GST CMP-08), FORM GSTR-5 or FORM GSTR-6, as the case may be, which were due to be furnished on or before the date on which the refund application is being filed.”

The Problem faced by QRMP Taxpayers

• It was noticed that taxpayers registered under the Quarterly Return Monthly Payment (QRMP) scheme faced problems while trying to file GST refund application.
• The system was not able to identify invoices furnished using the Invoice Furnishing Facility (IFF) for the time frame of the first two months of the quarter (M1 and M2 ), making it difficult to process refund filing.
• Also, in instances where GSTR-1 for the relevant quarter had already been filed, the system was still asking taxpayers to file returns for M1 and M2. Taxpayers faced this trouble every time the refund application was being submitted in between the period of the two quarters.

Resolution made by GSTN

Taxpayers under the QRMP scheme will now be able to file refund applications for the invoices for which GSTR-3B has already been filed.

However, the invoices furnished through IFF for which GSTR-3B is yet to be filed in the coming return period should not be included by the taxpayers in the refund application.

The Official Press release can be downloaded from link given below: