Is Updated Annexure B making your GST refund process smoother or more complicated? | GST REFUND APPLICATION WITH UPDATED ANNX- B | Annexure B Utility — Common Errors and How to Fix Them
1. What is Annexure B and Why Does It Matter?
Under the Goods and Services Tax (GST) framework, registered taxpayers who are eligible for a refund – particularly exporters and SEZ suppliers – are required to file a formal refund application using Form RFD-01.
As part of this process, Annexure B is a mandatory statement that provides a detailed, invoice-wise summary of the refund being claimed. If we look at the origin of Annexure B, it was mandated to be furnished by a taxpayer filing refund application through Circular No. 125/44/2019 – GST as per the format specified therein. Till now, taxpayers were preparing Annexure B in workbook and were submitting copy of same in pdf along with refund application. Thereafter adjudicating officer was designated a role of verifying and evaluating the correctness of same as per GST law.
Now onwards, Annexure B cannot be filed manually. Instead, the GST portal has implemented an Offline Utility – a tool that taxpayers have to use to enter their invoice details, calculate the eligible refund amount, and generate a structured filed that is thereafter uploaded to the GST portal which shall be validated by GSTIN Portal. This utility ensures that the data submitted is in the correct and uniform format as per prescribed utility, wherein the data shall be filled up by the taxpayers, for processing by the GST portal.
The key purposes of updated Annexure B are:
- To provide an invoice-wise breakup of exports or supplies made to SEZ units.
- To establish the tax paid on these supplies, which is the basis for the refund claim.
- To ensure the refund amount is accurately computed and verifiable by the tax authorities.
- To create a uniform structure of data for accurate adjudication and analysing data further for future use.
Given its very important role in the refund process, any error in Annexure B — whether in data entry, file format, or calculation — can lead to delays, rejection of the application, or the need to re-file from scratch or may lead to litigation. Hence, developing an understanding about how to use the utility correctly, and how to resolve common errors, is very essential for every taxpayer applying for a GST refund.
2. How to Use the Annexure B Offline Utility:
The process of using the Annexure B utility involves the following steps:
Step 1: Download the Latest Utility
It is always to keep note that downloading the most recent version of the offline utility from the official GST portal (www.gst.gov.in). For that navigate to Downloads > Offline Tools > Refund Offline Tool. Using an outdated version is one of the most common causes of errors.
Step 2: Enter Invoice Details
Open the utility and enter the required details carefully. The utility includes your GSTIN, the tax period, invoice numbers, invoice dates, taxable values, and the applicable tax amounts (IGST, CGST, SGST). All entries must match exactly with what was reported in your GSTR-1 and GSTR-3B returns.
Step 3: Validate the Data
Use the in-built ‘Validate’ button within the utility before generating the file. The utility will flag any missing fields or obvious mismatches. Resolve all errors shown at this stage.
Step 4: Generate and Upload JSON File
Once validation is successful, generate the JSON file using the ‘Generate File’ option. Do not open or edit this JSON file manually. Upload it directly on the GST portal while filing Form RFD-01.
3. Common Errors:
| Error | What It Means | How to Fix It |
| Duplicate Data
Validation error |
Hidden spaces, copied values, or formatting issues in the utility. | Re-enter the data carefully, avoid copy-paste from external sources, and remove extra spaces before generating JSON. |
| Document date cannot be greater than to return period | The tax period selected does not match the data available on the portal, or the refund period is outside the permissible range. | Verify that the refund period is correct and falls within the allowed window. Correct the invoice date or increase the selected return period. |
| JSON has no data/ At least one invoice should be present | Portal cannot read the generated JSON file properly. | Check whether invoice details are correctly saved in the utility and regenerate the JSON file before upload. |
| GSTIN of supplier is not matching with the GSTIN details as per GSTR-2B | Wrong supplier selected or Extra spaces or hidden characters. | Verify supplier GSTIN and invoice details from GSTR-2B and re-upload. |
| Invoice not appearing after upload | Incorrect mapping or incomplete entry in the offline utility. | Verify that the invoice is entered in the correct section and all mandatory fields are completed. |
| Wrong ITC classification | Eligible and ineligible ITC not bifurcated correctly. | Recheck the classification of ITC and ensure blocked credit under Section 17(5) is excluded properly. |
| GSTR 2B mismatch | Invoice period or credit mapping may be wrong. | Match the invoice with the correct GSTR-2B period before generating the file. |
| Utility Version Mismatch | An outdated version of the Annexure B utility is being used, which may not be compatible with the current portal. | Always download the latest version of the offline utility from the GST portal before use. Delete old versions to avoid confusion. |
| HSN/SAC Code invalid | HSN/SAC Code invalid due to mismatch between the nature of goods or services or Code starting with ‘0’. | Ensure that the nature of goods or services mentioned matches with HSN code or remove the leading ‘0’. Also ensure HSN code should be of 4/6/8 digits only. |
| Incorrect demand or order reference in refund cases | Demand ID, order number, or refund-linked balance is not aligned with portal records. | Re-verify the selected demand, the relevant order, and the amount eligible for refund before submission. |
4. Important Notes:
- Upload Annexure B after uploading Statement 3 (While applying for refund of ITC pertaining to Export made against LUT and Statement 1A (While applying for refund under Inverted Duty Structure) as the case maybe.
- Copy-paste functionality has been enabled for dropdown values in the offline utility. While using this feature, users must ensure that the value that user if copying and pasting must match with the exact dropdown value. Any deviation, including leading or trailing spaces, may result in validation errors. Additionally, users should not paste data into any frozen/protected fields, as this may lead to processing or validation issues. It is to clarify that using right click instead “Ctrl+C” and “Ctrl+V” for copy paste functioning.
- Before using the newly downloaded utility, users should ensure that any previous version of the Annexure B Offline Utility is completely closed. Keeping an older version open simultaneously may cause issues with the enhanced copy-paste functionality.
- It is advised to avoid using unnecessary spaces while entering or copy-pasting data (for example, extra spaces after supplier name or in other fields), as such inconsistencies may result in errors during JSON generation or upload. Copy & Paste should be special Paste.
- Users are requested to ensure that no changes are made directly to the JSON file after it has been generated. In case any modifications are required, the same should be made in the offline utility, followed by revalidation and generation of a fresh JSON file for upload. Further, the name of the JSON file should not be altered after creation, as this may lead to upload issues.
- While entering figures in CGST, SGST, and IGST columns, taxpayers should ensure that values are entered only in the applicable fields. For example, in the case of interstate supplies where IGST is applicable, users should avoid entering any value in CGST or SGST columns if those fields are not relevant. Users can use ‘F2 + ENTER’ in Cess for filling the Total Tax column. Also decimal values should be restricted to 2 digits.
- It is advised to ensure that the date format is dd-mm-yyyy only (system sometimes changes the format automatically).
- It is to note that ITC reversed under GSTR 3B shall be reported under Annexure B only as per the reversal made in relevant field of GSTR 3B i.e. Table 4B (i) or 4B (ii).
- Once the above Utility of Annexure B is validated, if taxpayers wish to reduce eligible refund than that of automated calculation, then they can relatively reduce amount of Net ITC manually to derive the correct figures.
- It is to note that now portal has automated order of utilization of CGST, SGST or IGST Credit as per the provisions of Section 54 of The CGST Act, 2017 read with Rule 89 of The CGST Rules, 2017 read with Circular No. 125/44/2019 – GST, once the sheet is validated.
5. Conclusion:
In concluding remarks, it is to note that when there is a war like situation across the globe which have impacted invariably increase in rates of commodities and services, taxpayers are facing liquidity issues, and the new utility takes a sizeable long time for the Consultants to upload “Annexure B” since it has been updated. But it can be seen from good side that since it will develop the uniformity amongst taxpayers and will validate many functions of Adjudicating Officers in advance which may help in clearing applications very speedy and early by the GST department.
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