GSTN has introduced a standardized Annexure-B Offline Utility for filing refund applications involving accumulated Input Tax Credit (ITC). Until now, taxpayers were uploading Annexure-B in PDF format while filing refund applications under specified categories.
The new utility is aimed at bringing uniformity in refund filings, enabling invoice-level reporting, and facilitating system-based verification of invoices and documents.
Refund Categories Covered
Taxpayers are now required to furnish Annexure-B through the prescribed offline utility for the following refund categories:
- Exports of goods or services without payment of tax, involving accumulated ITC, excluding export of electricity
- Supplies made to SEZ Unit or SEZ Developer without payment of tax
- ITC accumulated due to inverted tax structure under clause (ii) of the first proviso to Section 54(3) of the CGST Act
- Export of electricity without payment of tax involving accumulated ITC
Purpose of the Annexure-B Offline Utility
The offline utility has been introduced in Excel format to capture invoice-wise details of inward supplies for which refund is being claimed.
The reporting is required to be done HSN/SAC-wise, with invoices segregated into separate line items based on:
- Distinct HSN/SAC codes
- Category of input supply: Inputs, Input Services, or Capital Goods
All other relevant fields in the utility, including taxable value, tax amount, and whether ITC is blocked under Section 17(5) of the CGST Act, must be filled with reference to the specific HSN/SAC and input category reported in that line item.
Structure of the Utility
The Annexure-B Offline Utility contains two tables:
Table 1: Reversal Details
Table 2: HSN/SAC-wise inward invoice details for which ITC has been claimed in GSTR-3B
Reporting Invoices with Multiple HSN/SAC Codes or Supply Categories
Where a single invoice contains multiple categories of supplies, such as inputs, input services, and capital goods, or contains multiple HSN/SAC codes, the taxpayer is required to split the invoice into separate line items in the utility.
Each line item should represent only one category of input supply mapped to one HSN/SAC code. The invoice value and tax amounts must be proportionately distributed across such line items.
Taxpayers should carefully read the instructions in the “Read Me” section of the utility, particularly the note added at Point 6, to avoid validation errors.
Duplicate Document Validation
The system will validate duplicate documents separately for each type of inward supply and document type.
Validation will be based on the following parameters:
- Supplier GSTIN
- Invoice number
- Invoice date
- Category of input supply
- HSN/SAC
For the same invoice, if the category of input supply and HSN/SAC are identical, only one line item should be reported. Multiple entries with identical parameters will not be accepted.
Reporting of ITC Reversals
Taxpayers must correctly report ITC reversals while using the utility.
Reversals under Rules 38, 42 and 43 of the CGST Rules, and reversals under Section 17(5) of the CGST Act, must be reported as per the corresponding month’s GSTR-3B. Other ITC reversals reflected in Table 4(B)(2) of GSTR-3B must also be reported appropriately.
Where multiple offline utility files are used, reversal amounts should be entered only in the final utility file. All previous utility files should reflect reversal amounts as zero. The system will recalculate the consolidated Net ITC after all JSON files are uploaded, and taxpayers should review the consolidated summary before submission.
Uploading the Annexure-B JSON File
After generating the Annexure-B JSON file from the offline utility, the taxpayer must upload it on the RFD-01 screen by clicking the hyperlink:
“Click to upload the Statement of invoices (Unutilized ITC)”
The taxpayer can then proceed with portal validation.
GSTR-2B Validation and Reports
Uploaded invoices will be validated with GSTR-2B.
Where validation is performed, the results will appear in the “Valid documents” sheet, indicating whether the invoices are available in GSTR-2B.
For invoices pertaining to GSTR-2B periods up to October 2024 or earlier, the system will not carry out validation with GSTR-2B data. However, taxpayers will still be allowed to enter such invoices in the utility and upload them on the portal. The system may display a generic message stating that the invoices are not validated, but such invoices will form part of the validated documents. This is expected system behaviour and should not be treated as an error.
For invoices pertaining to November 2024 or later, mismatches or validation failures will be reflected in the Invalid Documents Report.
Important Points While Using the Utility
Taxpayers should take note of the following precautions:
The copy-paste functionality has been enabled for dropdown values. However, the copied value must exactly match the dropdown value. Any deviation, including leading or trailing spaces, may result in validation errors.
Before using the newly downloaded utility, taxpayers should ensure that any earlier version of the Annexure-B Offline Utility is completely closed. Keeping an older version open may cause issues with enhanced copy-paste functionality.
Unnecessary spaces should be avoided while entering or copy-pasting data, as inconsistencies may lead to errors during JSON generation or upload.
No changes should be made directly to the JSON file after generation. If any correction is required, it should be made in the offline utility, followed by revalidation and generation of a fresh JSON file. The name of the JSON file should also not be altered after creation.
Line-Item Upload Limit
At present, one offline utility file can contain up to 10,000 line items. Taxpayers can upload up to 25 such files, allowing a total of 2,50,000 line items in a single refund application.
If the number of line items exceeds this limit, taxpayers should upload up to 2,50,000 line items through the offline utility. The remaining invoices may be submitted as supporting documents after converting them into PDF format.
GSTN has indicated that higher-volume data ingestion is being evaluated and may be introduced in future enhancements.
This update marks a clear shift from document-based refund filing to structured, invoice-level digital validation. While it may increase reporting discipline at the filing stage, it should also help reduce ambiguity during refund processing.
Taxpayers filing accumulated ITC refund claims should ensure proper invoice-level reconciliation, correct HSN/SAC mapping, accurate ITC reversal reporting, and careful review of GSTR-2B validation reports before submitting refund applications.