New Annexure-B Utility for GST ITC Refund: Practical Filing Manual and Common Pitfalls

Refund claims of unutilised Input Tax Credit (ITC) under GST have become substantially more data-intensive with the revised Annexure-B utility now live on the GST portal. Assessees seeking refund of accumulated ITC must compulsorily furnish invoice-level information in an expanded format through the new offline utility and upload the statement in JSON format.

The enhanced Annexure-B demands more granular classification of inward supplies, tighter linkages with GSTR-2B and GSTR-3B, and multiple in-built validations. While the intent is to strengthen system-based verification of refund claims, in practice, assessees are encountering significant hurdles—especially in areas such as ITC reversal and reclaim, imports, reverse charge transactions, and capital goods.

This article explains the updated format of Annexure-B, its key data fields and validation rules, typical issues emerging during JSON creation and upload, and practical strategies that assessees can adopt until the utility is further stabilised.

Understanding Annexure-B in GST Refunds

Annexure-B is the invoice-wise statement that must accompany refund applications for unutilised ITC under GST law. The requirement stems from Circular No. 125/44/2019-GST dated 18.11.2019, issued by CBIC to prescribe procedures for processing refund claims.

In essence, Annexure-B:

  • Captures detailed particulars of inward supplies on which ITC has been availed
  • Forms the primary basis for validating the ITC component claimed as refund
  • Is now mandatory to be filed in JSON format generated from the offline tool on the GST portal

What Has Changed in the Updated Annexure-B Utility?

The GST portal’s offline utility for Annexure-B has gone through a structural revamp. The latest version:

  • Adds several new data columns
  • Introduces strict validations and system checks
  • Enforces reconciliation with GSTR-2B and GSTR-3B

New Data Fields Introduced

The updated format requires the assessee to report additional attributes for each invoice. Some of the key newly introduced columns include:

  1. Type of Inward Supply
  2. Type of Document
  3. Port Code for Import of Goods
  4. Whether ITC is Blocked under Section 17(5)
  5. Amount of Ineligible ITC
  6. GSTR-2B Period

The utility then generates a .json file, which must be uploaded on the GST portal as part of the refund application.

Comparison with Earlier Annexure-B Structure

Under the earlier format, Annexure-B was relatively simple, mainly capturing:

  • Basic invoice-level details, and
  • Tax amounts forming part of the refund claim

The revised tool goes significantly beyond this by attempting simultaneous reconciliation of:

  • GSTR-2B
  • Table 4(A) of GSTR-3B (ITC availed)
  • Reversals declared in Table 4(B)
  • Reclaimed credits reported in Table 4(D)(1)
  • Net eligible ITC forming the refund base

This multi-layered matching has increased compliance efforts substantially and requires assessees to maintain detailed working papers and reconciliations for every refund period.

Mandatory Classification of “Type of Inward Supply”

One of the most impactful changes is the compulsory categorisation of each inward supply under specific heads. The classification must be reported invoice-wise in Column No. 2 of the utility.

If invoices belonging to different categories are clubbed or misclassified, JSON generation or upload may fail due to validation errors.

Available Categories for Inward Supplies

The utility presently provides the following options for “Type of Inward Supply”:

  1. Import of Goods
  2. Import of Services
  3. Import of Goods (Supplies from SEZ to DTA)
  4. Import of Services (Supplies from SEZ to DTA)
  5. Inward supplies from registered persons
  6. Inward supplies liable to reverse charge – registered persons
  7. Inward supplies liable to reverse charge – unregistered persons
  8. Inward supplies from ISD

Important: Correct mapping of each invoice to the right inward supply category is essential, as the system validations are aligned with the reporting logic of GSTR-2B and related GST returns.

Reporting of Document Type

The revised utility also requires that each entry specify the type of document in Column No. 3.