Introduction
On May 18, 2026, the GSTN introduced a significant change in the way taxpayers file refund applications involving accumulated Input Tax Credit (ITC). Until now, Annexure‑B was uploaded in PDF format, which limited automation and system‑based verification. To streamline the process, a standardized Annexure‑B Offline Utility has been deployed on the GST portal. This Excel‑based utility ensures uniformity, reduces manual errors, and enables automated validation of invoices with GSTR‑2B.
This blog explains the new requirements, structure, and functionality of the Annexure‑B Offline Utility, along with practical guidance for taxpayers filing refund applications under specific categories.
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Applicability of Annexure‑B Offline Utility
Taxpayers must now furnish Annexure‑B through the prescribed offline utility for refund claims involving accumulated ITC under the following categories:
- Exports of Goods/Services without payment of tax (excluding electricity)
- Supplies made to SEZ Unit/SEZ Developer without payment of tax
- ITC accumulated due to Inverted Tax Structure [Clause (ii) of first proviso to section 54(3)]
- Export of Electricity without payment of tax (accumulated ITC)
This change ensures that refund applications across these categories follow a uniform reporting format.
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Features of the Offline Utility
The Annexure‑B Offline Utility is designed to simplify data entry and enhance accuracy. Key features include:
- Excel‑based format for invoice‑wise reporting.
- Mandatory segregation of invoices HSN/SAC‑wise and by category of input supply (Inputs, Input Services, Capital Goods).
- Each line item must include taxable value, tax amount, and ITC eligibility under section 17(5).
- Capacity of 10,000 entries per file; taxpayers can use multiple files if required.
- Clear validation rules to prevent duplicate entries.
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Structure of the Utility
The utility contains two main tables:
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Table 1 – Reversal Details
- Captures ITC reversals under Rules 38, 42, 43, and section 17(5).
- Includes other reversals reported in Table 4(B)(2) of GSTR‑3B.
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Table 2 – HSN/SAC‑wise Inward Invoice Details
- Requires invoice‑wise reporting of ITC claimed in GSTR‑3B.
- Segregation by HSN/SAC code and category of input supply.
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Handling Complex Invoices
Invoices often contain multiple categories of supplies or multiple HSN/SAC codes. In such cases:
- Split the invoice into separate line items.
- Each line item must represent one category mapped to one HSN/SAC code.
- Distribute invoice value and tax amounts proportionately across line items.
This ensures accurate reporting and avoids mismatches during validation.
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Duplicate Document Validation
To prevent duplication, the system validates invoices based on:
- Supplier GSTIN
- Invoice Number
- Invoice Date
- Category of Input Supply
- HSN/SAC
If all these parameters are identical, only one line item should be reported. Multiple entries under identical parameters will be rejected.
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Reporting ITC Reversals
Taxpayers must carefully report ITC reversals:
- Reversals under Rules 38, 42, 43 and section 17(5) must be reported as per GSTR‑3B.
- Other reversals reflected in Table 4(B)(2) of GSTR‑3B must also be included.
- When multiple files are used, reversal amounts should be entered only in the final file.
- The system recalculates consolidated Net ITC after all JSON files are uploaded.
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Uploading Annexure‑B JSON File
Once the offline utility is completed:
- Generate the Annexure‑B JSON file.
- Upload it on the RFD‑01 screen under “Statement of invoices (Unutilized ITC)”.
- Proceed with validation and submission.
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Post‑Upload Validation
The system validates uploaded invoices against GSTR‑2B:
- Invoices up to October 2024: No validation with GSTR‑2B; system displays a generic message but accepts entries.
- Invoices from November 2024 onwards: Strict validation against GSTR‑2B.
- Valid invoices appear in the Valid Documents Report.
- Mismatches or failures appear in the Invalid Documents Report.
This ensures that refund claims are supported by verified invoices.
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Practical Notes for Using the Utility
Taxpayers should keep in mind the following:
- Copy‑paste functionality is enabled for dropdown values, but values must match exactly.
- Close older versions of the utility before using the new one.
- Avoid unnecessary spaces in fields (e.g., supplier name).
- Do not edit JSON files directly; regenerate them from the utility if changes are required.
- Do not rename JSON files after generation, as this may cause upload issues.
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Line‑Item Upload Limits
The system currently allows:
- 10,000 line items per file.
- 25 files per refund application.
- A total of 2,50,000 line items per application.
If the number of invoices exceeds this limit, taxpayers can upload up to 2,50,000 line items through the utility and submit the remaining invoices as supporting documents in PDF format.
Future enhancements are expected to support higher‑volume data ingestion.
Benefits of the Annexure‑B Offline Utility
The new system offers several advantages:
- Automation: Enables system‑based validation of invoices.
- Uniformity: Standardized format across refund categories.
- Accuracy: Reduces manual errors and duplication.
- Efficiency: Handles large volumes of data with structured reporting.
- Transparency: Provides clear reports of valid and invalid documents.
Conclusion
The introduction of the Annexure‑B Offline Utility marks a major step toward automation and efficiency in GST refund processing. By mandating invoice‑wise reporting, HSN/SAC segregation, and system‑based validation, the utility ensures transparency, accuracy, and faster processing of refund applications involving accumulated ITC.
Taxpayers should familiarize themselves with the utility, carefully follow instructions, and validate entries before generating JSON files. With these enhancements, refund applications can now be filed more smoothly, reducing delays and ensuring compliance with GST regulations.
Blog by : Mittal & Co.