QRMP Refund Filing Issue Resolved on GST Portal: System Validation Updated for Compliance

On June 10, 2025, the GST Network (GSTN) announced the resolution of a technical issue affecting QRMP scheme taxpayers in filing refund applications on the GST Portal. The issue arose after a system validation introduced in May 2025, which enforced the requirement that all due returns must be filed before a refund can be claimed, in line with Circular No. 125/44/2019-GST.

QRMP taxpayers faced challenges because the system did not recognize invoices submitted via the Invoice Furnishing Facility (IFF) for the first two months of a quarter, leading to unnecessary prompts and blocked refund applications. This issue has now been fixed, allowing QRMP taxpayers to file refund claims for periods where GSTR-3B has already been submitted. However, they must still avoid including IFF invoices in refund applications if the corresponding GSTR-3B is not yet filed. GSTN urges all taxpayers to ensure timely return filing to facilitate smooth refund processing.

System Validation Streamlined: Facilitating Refund Applications for QRMP Taxpayers on the GST Portal

New Delhi, June 10th, 2025 – The Goods and Services Tax Network (GSTN) today announced the successful resolution of a technical issue that was impacting Quarterly Return Monthly Payment (QRMP) scheme taxpayers in filing their refund applications on the GST Portal. This fix follows a system-level validation deployed in May 2025, aimed at ensuring strict adherence to the provisions outlined in Para 6 of Circular No. 125/44/2019-GST, dated November 18, 2019.

The Mandate: Due Diligence in Return Filing

The core principle behind the recent system validation, as stipulated by Circular No. 125/44/2019-GST, is that any refund claim for a tax period can only be filed after all relevant returns due on or before the date of filing the refund application have been furnished. This critical provision aims to enhance compliance and streamline the refund process.

For regular taxpayers, this necessitates the prior furnishing of FORM GSTR-1 and FORM GSTR-3B. However, the circular carves out exceptions for specific taxpayer categories: composition taxpayers, non-resident taxable persons, and Input Service Distributors (ISDs). These entities are not required to furnish GSTR-1 and GSTR-3B; instead, they must have filed FORM GSTR-4 (along with FORM GST CMP-08), FORM GSTR-5, or FORM GSTR-6, as applicable, which were due on or before the refund application filing date.

Initial Implementation and Challenges for QRMP Taxpayers

Following the system update in May 2025, which incorporated this validation, the GST system was configured to permit refund applications only when all due returns up to the date of filing were submitted. While this enhancement aimed to bolster compliance, it inadvertently created hurdles for taxpayers operating under the QRMP scheme.

A key issue observed was the system’s failure to recognize invoices furnished through the Invoice Furnishing Facility (IFF) for the first two months of a quarter (M1 and M2). This oversight prevented QRMP taxpayers from proceeding with their refund applications, as the system deemed these invoices as not properly accounted for. Furthermore, in scenarios where GSTR-1 for the preceding quarter had already been filed, the system was erroneously prompting taxpayers to file returns for M1 and M2 of the current quarter, even when these were not yet due for full GSTR-1 filing. This problem was particularly prevalent when refund applications were being submitted during the interim period between two quarters.

Resolution and Path Forward for QRMP Taxpayers

Team GSTN has confirmed that the aforementioned technical issue has been successfully resolved. This vital fix means that QRMP taxpayers can now proceed with filing refund applications for invoices for which GSTR-3B has already been filed.

However, a crucial point for QRMP taxpayers to note is that invoices furnished through IFF for which GSTR-3B is yet to be filed in a future return period should NOT be included in the current refund application. This emphasizes the continued importance of the principle that only reconciled and reported data should form the basis of a refund claim.

Ensuring Compliance: A Collective Responsibility

The GSTN reiterates its advice to all taxpayers to ensure that relevant returns are filed prior to filing any refund application. This is in strict accordance with the prevailing legal provisions and the enhanced system validations now in place. Adhering to this directive will ensure a smooth and efficient refund processing experience.

Support and Assistance

In case of any discrepancies or system-related queries, taxpayers are encouraged to reach out to the GST Helpdesk for assistance. The self-service portal for the GST system can be accessed at https://selfservice.gstsystem.in.

This latest update underscores GSTN’s commitment to continuously refining the GST Portal to enhance user experience and ensure seamless compliance for all taxpayers.

FAQs on QRMP Refund Filing Issue on GST Portal

What issue did QRMP taxpayers face while filing refund applications on the GST Portal?
They were unable to file refund applications because the system failed to recognize invoices furnished via the Invoice Furnishing Facility (IFF).

What caused the refund filing issue for QRMP taxpayers?
The issue was triggered by a system-level validation introduced in May 2025 that required all relevant returns to be filed before refund applications.

Which circular mandates the filing of returns before a refund application?
Circular No. 125/44/2019-GST, dated November 18, 2019, mandates that all relevant returns due on or before the refund application date must be filed.

What was the system error related to M1 and M2 months?
The system failed to acknowledge IFF invoices for the first two months (M1 and M2) of a quarter, treating them as unreported.

Did the system also misidentify due returns?
Yes, it sometimes prompted QRMP taxpayers to file returns for M1 and M2 of the current quarter, even when those were not due yet.

Has the technical issue been resolved?
Yes, GSTN has confirmed that the issue has been fixed and refund filing is now working as expected for QRMP taxpayers.

Can QRMP taxpayers now file refund applications?
Yes, they can file refund applications if GSTR-3B has been submitted for the relevant tax period.

Can I include IFF invoices in the refund application if GSTR-3B for the same period isn’t filed?
No, only invoices for which GSTR-3B has already been filed should be included in the refund application.

Are there exceptions to GSTR-1 and GSTR-3B requirements for refunds?
Yes, composition taxpayers, non-resident taxable persons, and ISDs have different filing requirements like GSTR-4, GSTR-5, or GSTR-6.

What is the Invoice Furnishing Facility (IFF)?
IFF allows QRMP taxpayers to upload invoices for the first two months of a quarter before filing GSTR-1 for the entire quarter.

What is the QRMP scheme under GST?
It is a scheme allowing small taxpayers to file quarterly returns while paying tax monthly.

What forms must regular taxpayers file before claiming refunds?
They must file both FORM GSTR-1 and FORM GSTR-3B for the relevant periods.

What should taxpayers do before filing refund applications?
Ensure all due returns have been filed up to the date of the refund application.

What happens if I include invoices from a period for which GSTR-3B isn’t filed?
The refund application may be rejected or not processed due to non-compliance with system validation rules.

Where can taxpayers get help for GST Portal issues?
They can visit the GST self-service portal at https://selfservice.gstsystem.in.

What is the goal of the new system validation?
To enhance compliance, streamline refund processing, and ensure data integrity.

Why is return filing important before claiming a refund?
It ensures that only reconciled and accurately reported data forms the basis of refund claims.

Will future refund applications face similar issues?
Not if all required returns are filed; the system is now updated to handle such validations correctly.

Does this update improve user experience?
Yes, it reduces errors and improves the efficiency of refund processing on the GST Portal.

What should QRMP taxpayers keep in mind moving forward?
Only apply for refunds once GSTR-3B has been filed for the period covering the invoices in question.

The recent resolution by GSTN marks a significant improvement for QRMP taxpayers, ensuring smoother and more compliant refund processing on the GST Portal. With the system now correctly validating IFF invoices linked to filed GSTR-3B returns, taxpayers can expect fewer disruptions and greater clarity when submitting refund claims.

However, strict adherence to return filing timelines remains crucial. Taxpayers are encouraged to remain vigilant, file all due returns promptly, and consult the GST Helpdesk for any technical or procedural support, reinforcing a more efficient and compliant GST ecosystem.