The GSTN has issued an Advisory dated 18.05.2026, introducing a major procedural overhaul in the filing of refund applications involving accumulated Input Tax Credit (ITC) by mandating the use of a standardized Annexure-B Offline Utility from 18 May 2026 onwards.
Earlier, taxpayers were permitted to upload Annexure-B in PDF format while claiming refunds under categories such as exports without payment of tax, supplies to SEZ units/developers, inverted duty structure refunds, and export of electricity. The newly introduced Excel-based utility aims to automate the refund process, facilitate invoice-level verification, and enable system-driven matching with GSTR-2B data, thereby reducing manual scrutiny and enhancing transparency in refund administration.
A significant feature of the new utility is the requirement of HSN/SAC-wise reporting of inward supplies. Taxpayers must now bifurcate invoice details based on categories such as inputs, input services, and capital goods, and report taxable value, tax amount, and blocked credit details separately for each HSN/SAC line item. Where a single invoice contains multiple HSN/SAC codes or different categories of supplies, the invoice must be split into multiple line items with proportionate allocation of invoice value and tax components. This marks a shift from broad invoice-level reporting to granular line-item based disclosure, thereby substantially increasing the accuracy and auditability of refund claims.
The utility also introduces stringent duplicate validation controls. Entries containing identical combinations of supplier GSTIN, invoice number, invoice date, input supply category, and HSN/SAC will not be accepted by the system. Further, taxpayers are required to separately disclose ITC reversals pertaining to Rules 38, 42, and 43, blocked credits under Section 17(5), and reversals reflected in Table 4(B)(2) of GSTR-3B. In cases where multiple utility files are uploaded, reversal figures must be reported only in the final JSON file, as the portal recalculates consolidated Net ITC after processing all uploaded files.
Another important development is the integration of GSTR-2B validation into the refund process. Invoices pertaining to tax periods from November 2024 onwards will undergo automated validation with GSTR-2B data, and mismatches will be reflected in an “Invalid Documents Report.” However, invoices relating to October 2024 or earlier periods will not undergo such validation, although they will still be accepted as valid documents for refund purposes. This distinction indicates a phased transition towards a fully system-validated refund mechanism under GST.
The Complete Advisory can be accessed at https://www.gst.gov.in/newsandupdates/read/660
