GST Refund Update for QRMP Taxpayers: Portal Now Accepting Claims Post GSTR-3B Filing | ITAT Mumbai

 

🧾 Introduction: A Relief for Small Businesses Under QRMP

The Goods and Services Tax Network (GSTN) has rolled out a critical update: taxpayers under the Quarterly Return Monthly Payment (QRMP) scheme can now file for GST refunds immediately after submitting GSTR-3B.

This change came into focus after a recent ruling by the Income Tax Appellate Tribunal (ITAT) Mumbai, which addressed key issues in refund eligibility for QRMP taxpayers. This is great news for small and medium businesses struggling with working capital due to refund delays.

In this article, we explain:

• What this update means for taxpayers

• How to file a GST refund under the QRMP scheme

• What the ITAT Mumbai said

• Common mistakes to avoid

• FAQs, practical tips, and more!

📌 What is the QRMP Scheme?

The QRMP (Quarterly Return Monthly Payment) scheme is designed for small taxpayers with aggregate turnover of up to ₹5 crore in the previous financial year. Under this scheme:

• Returns are filed quarterly (GSTR-1 and GSTR-3B)

• Tax is paid monthly, either through Fixed Sum Method (FSM) or Self-Assessment Method (SAM)

🔔 What’s the New Update on Refund Filing?

🆕 Key Highlights:

Feature	Before Update	After Update
Refund Filing	Blocked until monthly GSTR-3B filed	Allowed post GSTR-3B quarterly return
Applicable To	QRMP taxpayers	QRMP taxpayers
Portal Functionality	Limited/erroneous	Fully enabled
Refund Application Form	RFD-01	RFD-01

Earlier, the portal restricted refund filings from QRMP taxpayers due to misalignment in return filing frequency. This has now been resolved.

🏛️ What Did the ITAT Mumbai Say?

The ITAT Mumbai recently heard a matter where the refund application was rejected on procedural grounds, stating that QRMP taxpayers couldn’t apply post-GSTR-3B. The tribunal ruled that:

“The denial of refund solely due to portal limitations or mismatches in technical configurations is not justified, especially when the taxpayer has fulfilled substantial compliance.”

This sets a strong precedent for taxpayers who were wrongly denied refunds due to system glitches.

📤 How to File GST Refund Under QRMP Scheme (Step-by-Step)

Here’s how eligible taxpayers can now claim their refund post-GSTR-3B filing:

✅ Eligibility Checklist:

• Registered under QRMP

• GSTR-3B filed for the relevant quarter

• No pending returns or dues

• Valid refund claim (excess ITC, export refund, etc.)

🧾 Step-by-Step Process:

1. Log in to GST Portal

2. Navigate to Services > Refunds > Application for Refund

3. Select relevant refund type (e.g., excess ITC, export without payment)

4. Fill out Form RFD-01

5. Upload required documents (invoice, bank details, etc.)

6. Submit and note the ARN for future tracking

7. Refund will be credited upon officer verification

📊 Real Example: Small Exporter in Maharashtra

A textile exporter under QRMP in Mumbai was earlier denied refund due to technical portal blocks. Post this update and ITAT judgment, he reapplied and received ₹2.3 lakhs as accumulated ITC refund within 15 days.

This change benefits lakhs of micro and small businesses in India.

⚠️ Common Mistakes to Avoid

• ❌ Filing incomplete GSTR-1 before claiming refund

• ❌ Choosing wrong refund type in RFD-01

• ❌ Not reconciling ITC ledger before applying

• ❌ Missing ARN follow-up

📈 Why This Update Matters for Business Owners

This update will:

• ✅ Improve cash flow for small businesses

• ✅ Reduce GST litigation and rejections

• ✅ Empower timely refund access

• ✅ Simplify compliance under QRMP

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❓ FAQs: GST Refund for QRMP Scheme Taxpayers

Q1. Can QRMP taxpayers now apply for refund after GSTR-3B filing?
Yes, GSTN has enabled refund filing after quarterly GSTR-3B filing.

Q2. Which refund form is used?
Form RFD-01 is used for refund applications.

Q3. Is ITAT Mumbai ruling legally binding?
While ITAT rulings apply to specific cases, they are often used as precedents and considered persuasive in similar disputes.

Q4. What refund types are allowed?
Excess ITC, Export Refunds, Inverted Duty Structure, etc.

Q5. How long does it take to receive the refund?
Typically within 15–30 days, subject to officer verification.

📞 Need Help With GST Refund Filing?

If you're a QRMP taxpayer and need expert help filing your GST refund, we’re here to assist!

👉 Contact Manika FinTax Solutions for:

• ✔️ End-to-End GST refund support

• ✔️ QRMP return filing

• ✔️ Compliance and reconciliation help

• ✔️ Affordable service packages

📧 Email: fintaxguides@gmail.com
📲 WhatsApp: 9340972576

🔚 Final Words

This update from the GST portal — backed by the ITAT Mumbai ruling — simplifies the refund process for small taxpayers under QRMP. Ensure you're taking full advantage of this change by staying compliant and filing timely claims.