Goods and Services Tax Network (GSTN) has updated its system to improve the process for claiming order-based refunds. Previously, taxpayers could only apply for a refund under the “Assessment/Enforcement/Appeal/Revision/Any Other Order” (ASSORD) category if the overall balance of their Demand ID was negative and its status was “Refund Due.” This restriction prevented taxpayers from claiming refunds on individual components (minor heads) that had a negative balance when the total Demand ID balance was zero or positive. The new system changes address this by allowing refunds for any minor head with a negative balance, regardless of the overall Demand ID status or balance. When a refund is claimed, the system will now automatically populate only the negative balances in the refund application form (Form RFD-01). Additionally, the system now suggests the most recent demand order number associated with a negative balance, and tooltips have been added to guide users in entering the correct order number and Demand ID.
Goods and Services Tax
Government of India, States and Union Territories
Advisory –System Enhancement for Order-Based Refunds
Aug 28th, 2025
1. As per the available functionality, taxpayers could claim refunds under the category “On account of Assessment/Enforcement/Appeal/ Revision/Any Other Order” (ASSORD) only if:
- The cumulative amount of the Demand ID showed a negative balance (i.e., refund eligible).
- The status of the Demand ID was “Refund Due”.
This restriction prevented taxpayers from claiming refunds when individual components (minor heads) of a demand showed negative balances and the overall cumulative balance was zero or positive.
2. For the above scenario, several references have been made by the tax payers and tax officers stating that the taxpayers are not able to claim the refund. Accordingly the following changes have been implemented in the system:
- Refunds can now be claimed irrespective of the Demand ID status.
- Refunds are allowed even when the cumulative balance is positive or zero, provided any minor head has a negative balance.
- Only negative balances will be auto-populated in the refund application (Form RFD-01); taxpayers cannot claim any refund for the positive amounts within the demand.
- Order Number Suggestions: The system automatically suggests the most recent demand order associated with a negative balance such as order-in-original, rectification order or appellate orderetc.
- Tooltips: Clear guidance is provided near the Order No. and Demand ID fields to help taxpayers enter the correct details.
3. A comprehensive user manual and FAQs will be shared shortly. In case of any discrepancies or system-related queries, a ticket may be raised with the GST helpdesk.
Regards,
Team GSTN
