GST Update: Weekly Goods and Service Tax latest News – June 2025

GST WEEKLY UPDATE : 09/2025-26 (02.06.2025)

1. Updates in Refund Filing Process for Recipients of Deemed Export:

GSTN has made the following changes in the refund filing process under the category “On account of Refund by Recipient of deemed export”:

1. Refund applications under this category is no longer need to be filed in chronological orderof Tax Period which means Taxpayers are not required to select “From Period” and “To Period” while filing refund application.
2. Taxpayers must ensure that all the returns (GSTR-1, GSTR-3B etc) due till the date of refund application, are filed.
3. Under the afore said category, the table “Amount Eligible for Refund”has been modified. The columns of the revised table are explained hereunder:
   1. Col. 1 ‘Balance in ECL at the time of filing of refund application’. This column will reflect the balance available under various Head in Electronic Credit Ledger at the time of filing of application. It will be auto populated.
   2. Col. 2 ‘Net Input Tax Credit (ITC) of Deemed Exports (as per uploaded invoices)’,in this column the amount of claimed ITC, under respective major Heads will be auto populated based on invoices furnished in Statement 5B.
   3. Col. 3 ‘Refund amount as per the uploaded invoices’reflects the sum of the amount of ITC claimed under all major Heads (IGST/CGST/SGST/UT) as per the invoices uploaded by the taxpayer in Statement 5B and shall be downward editable.
   4. Col. 4 ‘Eligible Refund Amount’. In this column, maximum amount of ITC which is available for refund claim will be auto populated. It will be auto-calculated based on the order of debit specified in Circular No. 125/44/2019-GST dated 18.11.2019.
   5. Col. 5 “Refund amount not eligible as insufficient balance in the ECL (5)”. This column reflects the difference between the total amount of claimed ITC and the total amount of ITC available in Electronic credit Ledger under various major Heads.
4. Functionality has been improved to maximize the amount of refund a taxpayer can claim in terms of uploaded invoices, irrespective of the fact that sufficient balance is available in the respective Head of electronic credit ledger or not. Here, the total amount of claim under various Heads (IGST, CGST, SGST) will be compared with total amount of ITC available under various Heads in electronic credit ledger.
5. The taxpayers are advised to note these changes and if any problem is faced while filing of refund application, grievance may be raised in GST portal.  https:// selfservice. gstsystem.in/ReportIssue.aspx

Read Also: GST Revamp on the Horizon: What Businesses and Consumers Should Know

 2. Updates in Refund Filing Process for various refund categories:

1.  GSTN has been made important changes in the refund filing process under the following categories:
   1. Export of Services with payment of tax
   2. Supplies made to SEZ Unit/SEZ Developer with payment of tax
   3. On account of Refund by Supplier of Deemed export.
2. For the above refund categories, the requirement to select a specific tax period (‘From’ and ‘To’) while filing refund applications has been removed. The taxpayers can now directly proceed with selecting the refund category as above and clicking on “Create Refund Application.”
3. Taxpayers must ensure that all the returns (GSTR-1, GSTR-3B etc) due till the date of refund application, are filed.
4. The said refund categories are changed from ‘Tax Period based filing’ to ‘Invoice based filing’. The taxpayers can upload eligible invoices and claim refund in the following statements:
   1. Export of Services with payment of Tax (Statement 2)
   2. SEZ Supplies with payment of Tax (Statement 4)
   3. In case of Deemed Exports, the application by Supplier (Statement 5B)

The invoices once uploaded with a refund application will be locked for any further amendment and will not be available for any subsequent refund claims. The said invoices will be unlocked only if the refund application is withdrawn or a deficiency memo is issued.

Read Also: GSTN Postpones Non-Editable Table 3.2 in GSTR-3B After Taxpayers’ Grievances

3. Invoice-wise Reporting Functionality in Form GSTR-7 on Portal

Vide Notification No. 09/2025 – Central Tax dated 11.02.2025, Form GSTR-7 has been amended to capture invoice-wise reporting with effect from 01.04.2025 i.e. the return period for April 2025 onwards.

4. Mandatory Separate HSN Reporting for B2B and B2C:

The GSTN has implemented a significant update to the GST Portal, enhancing compliance through more granular reporting. Table 12 of Form GSTR-1 now features separate sections for HSN-wise reporting of B2B (Business-to-Business) and B2C (Business-to-Consumer) outward supplies. Taxpayers must now enter HSN details for B2B transactions under the new “Add HSN for B2B” section, and separately report B2C transactions in the “Add HSN for B2C” section. This segregation is mandatory across all filing methods, whether through the portal, offline tools, or third-party software. The change aims to improve data accuracy, reduce reconciliation errors, and streamline audit and compliance processes. Businesses are advised to adapt their reporting practices accordingly to avoid discrepancies. By clearly distinguishing between B2B and B2C supply data, the new format supports a more robust and transparent GST system. Ensure your filings reflect this update from the current return period onward.

The Government of India has announced the restoration of benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for exports made by Advance Authorization (AA) holders, Export-Oriented Units (EOUs), and units operating in Special Economic Zones (SEZs). The benefits will be applicable for all eligible exports made from 1st June 2025 onwards.

Read Also: GSTAT: Centre Notifies New Rules For GST Appellate Tribunal

The decision comes as part of the government’s sustained efforts to boost India’s export competitiveness in global markets. The benefits under RoDTEP for these categories were previously available until 5th February 2025, and their reinstatement is expected to provide a level playing field for exporters across sectors.

Operational since 1st January 2021, the RoDTEP scheme is designed to reimburse exporters for embedded duties, taxes, and levies that are not otherwise refunded under any other existing scheme. It is compliant with World Trade Organization (WTO) norms and is implemented via a comprehensive end-to-end digital platform to ensure transparency and efficiency.

As of 31st March 2025, total disbursements under the RoDTEP scheme have crossed Rs. 57,976.78 crore, underscoring its significant role in supporting India’s merchandise exports.

For the Financial Year 2025–26, the Government has allocated Rs. 18,233 crore under the scheme. The support will cover 10,780 HS lines for Domestic Tariff Area (DTA) exports and 10,795 HS lines for AA/EOU/SEZ exports, ensuring broad-based coverage for diverse sectors of the economy.

The reinstatement of RoDTEP benefits for special export categories reflects the government’s continued commitment to creating a conducive, competitive, and compliant export ecosystem that drives India’s long-term trade growth.

Read also: GST Invoice Furnishing Facility (IFF): Features, Updates & Filing Guide

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