Notification/Circular No.: Update dated June 10, 2025
Applicable Act/Rule: Central Goods and Services Tax Act, 2017
In May 2025, the GSTN introduced a system validation on the portal to align with Para 6 of Circular No. 125/44/2019-GST, which mandates that refund applications can only be filed after all applicable GSTR-1 and GSTR-3B returns due up to the refund application date are filed. For composition taxpayers, NRTPs, and ISDs, the condition applies to their respective returns (GSTR-4/GSTR-5/GSTR-6).
After the validation was implemented, QRMP taxpayers faced issues as the system failed to recognise invoices uploaded via the Invoice Furnishing Facility (IFF) for the first two months (M1 and M2) of the quarter. It also incorrectly prompted users to file returns for M1 and M2 even when the previous quarter’s GSTR-1 was already submitted. This issue particularly affected taxpayers filing refund applications during the transitional period between quarters.
GSTN has now resolved the technical issue. QRMP taxpayers can file refund applications provided the relevant GSTR-3B is filed. However, invoices furnished via IFF for which GSTR-3B is yet to be filed in the upcoming return period should not be included in refund claims.
Taxpayers are reminded to file all due returns before applying for refunds and can reach out to the GST Helpdesk for assistance with any remaining system issues.
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