MM TAX CLUB

The GST Network (GSTN) has introduced key changes in the refund filing process under specific categories, aimed at simplifying the process and improving efficiency for taxpayers. Here's what you need to know:

1. Refund Categories Affected

The changes apply to the following refund categories:

• Export of Services with Payment of Tax

• Supplies Made to SEZ Unit/SEZ Developer with Payment of Tax

• Refund by Supplier of Deemed Export

2. Simplified Filing Process

Previously, taxpayers were required to select a specific tax period when filing refund applications. Now, the process has been simplified:

• The tax period requirement (‘From’ and ‘To’) has been removed.

• Taxpayers can now directly select the refund category and click on “Create Refund Application” to proceed.

3. Ensure Return Filing is Up-to-Date

Before filing the refund application, taxpayers must ensure that all returns (such as GSTR-1, GSTR-3B, etc.) due until the date of the refund application have been filed. This is critical to ensure smooth processing of refunds.

4. Invoice-Based Filing

The refund categories will now be filed invoice-wise rather than tax period-wise. The following changes apply:

• Export of Services with Payment of Tax (Statement 2)

• SEZ Supplies with Payment of Tax (Statement 4)

• Deemed Exports by Supplier (Statement 5B)

Once the invoices are uploaded with a refund application, they will be locked for further amendments and cannot be used for subsequent refund claims. They will only be unlocked if:

• The refund application is withdrawn, or

• A deficiency memo is issued.

What This Means for You

These updates will make the refund filing process quicker and more efficient, removing the hassle of tax-period-based filing. Make sure you upload your invoices correctly to avoid any complications with your refund claims.

Stay on top of these changes and ensure your refund applications are filed accurately and timely. For assistance, feel free to reach out to us.

The Goods and Services Tax Network (GSTN) is constantly evolving to improve compliance and transparency in tax reporting. In line with this objective, a significant update has been announced for Form GSTR-7, which relates to TDS (Tax Deducted at Source) under GST.

Notification Overview

As per Notification No. 09/2025 – Central Tax dated 11.02.2025, Form GSTR-7 has been amended to include invoice-wise reporting. This amendment is effective from April 1, 2025, meaning it applies to the return period starting from April 2025 onwards.

What’s Changing?

Previously, deductors were required to report TDS details in summary form. With the new functionality, deductors will now be required to report TDS details on an invoice-wise basis. This is a move towards more granular reporting, which helps in:

• Ensuring better matching of TDS data with suppliers' GSTR-1 filings

• Improving transparency and reducing mismatches

• Enhancing the reconciliation process for both deductors and deductees

Status of Implementation

The development and testing of this new invoice-wise reporting functionality in Form GSTR-7 is currently underway. The GSTN has assured that this feature will be deployed on the portal shortly.

What Users Should Know

• No action is required immediately. The current system remains unchanged until the feature goes live.

• The GST portal team will officially notify users once the new functionality is deployed.

• Users are advised to keep an eye on the portal updates and prepare their systems and processes accordingly for invoice-wise data entry.

Final Thoughts

This update is part of the government’s ongoing efforts to streamline GST compliance and reduce errors in return filing. While it may initially require some adjustment in the filing process, the invoice-level detail will ultimately benefit both deductors and deductees by making tax credit tracking more efficient.

Stay tuned for further announcements from the GSTN regarding the exact go-live date of this functionality. For any assistance in preparing for this change, feel free to reach out to us.

If you’re holding the Government of India security titled ‘7.72% GS 2025’, here’s an important update for you:
The outstanding balance of this security will be repaid at par on May 23, 2025.

???? Why May 23?

Although the actual maturity date is technically May 25, 2025, it falls on a Sunday. And since May 24 is a Saturday (both non-working days), the repayment is scheduled for Friday, May 23, 2025.

No interest will be paid beyond this date, so it’s crucial that all holders make the necessary arrangements well in advance.

???? Repayment Process – How Will You Get Your Money?

As per Government Securities Regulations, 2007:

• Holders with SGL/CSGL accounts or Stock Certificates will receive the maturity amount:

  • Via credit to their registered bank account, or

  • By Pay Order, incorporating bank details.

✅ Make sure your bank account details are updated with your Depository or the Public Debt Office well before maturity to avoid delays.

???? What If Bank Account Details Are Missing?

In cases where electronic mandate/bank details are not available:

• You’ll need to submit your securities (duly discharged) to any of the following:

  • Public Debt Offices

  • Treasuries / Sub-Treasuries

  • Designated SBI branches (where the securities are registered)

???? Make this submission at least 20 days before the due date to ensure timely repayment.

???? Special Note on State Holidays

If May 23, 2025 is declared a holiday under the Negotiable Instruments Act, 1881 by any State Government, repayment in that particular state will be made on the previous working day.

???? Need Help?

For any queries or clarity regarding the discharge and repayment procedure, investors can reach out to the nearest:

• Public Debt Office

• Treasury/Sub-Treasury

• SBI Branch where the securities are registered

Stay updated and ensure a smooth repayment process. Don’t wait until the last moment—verify your bank details and act in time!