The Goods and Services Tax Network (GSTN) has issued a new advisory on 28th August 2025 introducing system enhancements for order-based refunds under the category “On account of Assessment/Enforcement/Appeal/Revision/Any Other Order” (ASSORD).
This update resolves long-pending issues faced by taxpayers while claiming refunds against demand orders and brings more flexibility and clarity in the refund application process.
Background: Earlier Restriction on Refunds
Until now, taxpayers could claim refunds under the ASSORD category only when:
- The cumulative amount of the Demand ID showed a negative balance (i.e., refund eligible).
- The status of the Demand ID was shown as “Refund Due”.
This restriction created practical difficulties.
For example, even if a taxpayer had a negative balance in one component (minor head) but the overall cumulative balance of the demand was zero or positive, the system did not allow them to claim the refund.
This led to repeated references and complaints from both taxpayers and tax officers.
New Enhancements Introduced
To address these challenges, GSTN has now made the following key changes:
1. Refunds Allowed Irrespective of Demand Status
- Taxpayers can now claim refunds even if the Demand ID status is not “Refund Due”.
2. Negative Balances Can Be Claimed Even with Zero/Positive Cumulative Balance
- Refund applications are allowed even when the overall balance is zero or positive, provided any minor head shows a negative balance.
3. Auto-Population of Refund Amounts
- In Form RFD-01, only the negative balances will be auto-populated.
- Taxpayers cannot claim refunds for any positive balances.
4. Automatic Order Number Suggestions
- The system will now suggest the most recent demand order (such as an order-in-original, rectification order, or appellate order) linked to the negative balance.
- This reduces the chances of errors in entering order details.
5. Tooltips for Better User Guidance
- Helpful tooltips are now displayed near the Order No. and Demand ID fields.
- These provide clear instructions to taxpayers for entering the correct details.
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Support for Taxpayers
- A comprehensive User Manual and FAQs will soon be made available to guide taxpayers through the new process.
- In case of discrepancies or technical issues, taxpayers can raise a ticket with the GST helpdesk for resolution.
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