A critical compliance update has reshaped the GST refund process for exporters and SEZ suppliers. Effective May 18, 2026, the GSTN (Goods and Services Tax Network) has made the Excel-based Offline Utility mandatory for filing Annexure-B — the detailed invoice statement required for ITC refund claims under Rule 89 of the CGST Rules. PDF-based Annexure-B submissions are now permanently rejected by the portal. If your business relies on GST refunds — and for many export-oriented MSMEs, refunds are a critical cash flow source — you must immediately transition to the new Excel utility process.
In this guide, we explain what Annexure-B is, why the Excel utility matters, how to use it correctly, common errors to avoid, and how the overall ITC refund process works in 2026 for MSMEs engaged in exports or SEZ supplies.
What Is GST Annexure-B?
Annexure-B is a structured statement that forms part of the GST refund application (Form RFD-01) filed by taxpayers claiming a refund of accumulated Input Tax Credit. It lists the specific invoices — purchase invoices showing the GST paid on inputs — for which a refund is being claimed. The government uses Annexure-B to cross-verify that:
- The claimed ITC actually appears in your GSTR-2B (supplier-filed invoices)
- The inputs were used for zero-rated or export supplies eligible for refund
- The invoice amounts and tax figures match between your purchase records and the supplier’s GSTR-1 filings
- There are no duplicate claims across multiple refund periods
Annexure-B is filed by:
- Exporters of goods or services claiming ITC refunds on inputs used for zero-rated exports
- Suppliers to Special Economic Zones (SEZ developers and units) claiming ITC refunds
- Businesses accumulating ITC due to inverted duty structures (where input tax rate exceeds output tax rate)
For export-oriented MSMEs in West Bengal — particularly those in textiles, leather goods, engineering components, seafood, or jute products — Annexure-B filing is a monthly or quarterly compliance activity with direct cash flow implications. If you need GST refund assistance, our TaxMSME GST team handles refund applications end-to-end.
Why Did GSTN Move to Excel-Only Submission?
The shift from PDF to Excel is driven by the need for machine-readable, structured data that can be automatically validated and cross-referenced by GSTN’s systems. PDF documents require manual data extraction, are prone to formatting inconsistencies, and cannot be directly ingested by the portal’s automated verification algorithms.
The Excel Offline Utility generates a JSON file from your data entries that is directly uploaded to the GST portal. This structured JSON format enables:
- Automatic cross-matching with GSTR-2B data to identify ITC discrepancies
- Instant validation of invoice-level data at the time of upload
- Reduced processing time for refund applications (target: 60-day turnaround)
- Prevention of fraudulent refund claims through automated pattern detection
- Seamless integration with the IMS dashboard and e-invoicing data streams
How to Use the Mandatory Annexure-B Excel Offline Utility
Step 1: Download the Latest Excel Utility
Download the official Annexure-B Excel Offline Utility from gst.gov.in → Downloads → Offline Tools. Ensure you are using the version released after May 18, 2026. Earlier versions will not generate the updated JSON format required by the portal. Enable macros in Excel when prompted — the utility uses macros to validate data and generate the output file.
Step 2: Fill in Basic Details
In the utility’s first sheet, enter your:
- GSTIN of the applicant
- Tax period for which refund is claimed
- Type of refund (Export with payment of tax, Export without payment of tax, SEZ supply, Inverted Duty Structure)
- Total ITC amount claimed
Step 3: Enter Invoice-Level Data
In the invoice detail sheets, enter each purchase invoice for which ITC refund is being claimed:
- Supplier GSTIN
- Invoice number and date
- Invoice value (taxable amount)
- IGST, CGST, SGST paid on the invoice
- ITC amount claimed in this refund application
- Nature of input (goods/services)
Step 4: Validate and Generate JSON
Click the “Validate” button in the utility. It will highlight errors such as invalid GSTINs, duplicate invoice entries, or data format mismatches. Correct all flagged errors before proceeding. Once validation passes, click “Generate File” to create the JSON output file.
Step 5: Upload to GST Portal
Log into the GST portal, navigate to Refunds → Application for Refund → RFD-01 → Annexure-B. Upload the JSON file generated in Step 4. The portal will display a validation summary confirming the invoice count and total ITC claimed. Proceed to attach supporting documents and submit the RFD-01 form.
Common Errors in Annexure-B Filing – How to Avoid Them
| Common Error | Root Cause | How to Fix |
|---|---|---|
| Supplier GSTIN mismatch | Typo in GSTIN entry; supplier’s GSTIN changed | Cross-verify each GSTIN against GSTR-2B data before entry |
| Invoice not in GSTR-2B | Supplier hasn’t filed GSTR-1; invoice in wrong period | Reconcile with GSTR-2B before claiming; wait for supplier to file |
| ITC claimed exceeds GSTR-2B amount | Calculation error or partial ITC already claimed | Check ITC ledger; ensure claimed amount ≤ GSTR-2B amount for each invoice |
| JSON upload failure | Old Excel utility version; macro not enabled | Download latest utility; enable macros and regenerate JSON |
| Export invoice not reflected in GSTR-1 | E-invoicing not done; GSTR-1 not filed for the period | File GSTR-1 with export details before filing Annexure-B |
Complete ITC Refund Timeline 2026
The GST refund process for exporters follows a structured timeline once Annexure-B is correctly filed:
- Day 0: File RFD-01 with Annexure-B (Excel JSON) and supporting documents
- Day 1–3: Portal generates ARN (Application Reference Number) confirming receipt
- Day 3–7: Tax officer acknowledges application or raises query (FORM RFD-02)
- Day 7–30: Tax officer reviews Annexure-B against GSTR-2B, e-invoicing records, and GSTR-1
- Day 30–60: Provisional refund (90% for eligible exports) or Final Refund Order issued
- Day 60: Balance refund (10%) released after physical verification (for goods exports)
Errors in Annexure-B — particularly mismatches with GSTR-2B — are the single most common cause of refund delays. A well-prepared, validated Annexure-B with clean data dramatically speeds up the processing timeline. Our TaxMSME team has helped numerous export-oriented MSMEs claim timely refunds with zero queries from tax officers.
Conclusion
The mandatory Excel utility for GST Annexure-B is a positive development that will ultimately speed up ITC refund processing and reduce fraudulent claims. However, for businesses that have been using PDF submissions, the transition requires immediate action — downloading the new tool, training your accounts staff, and establishing a validation-before-upload workflow.
At TaxMSME, our GST compliance team is already fully equipped to handle the new Annexure-B process. We manage the entire refund application — from Annexure-B preparation to RFD-01 filing to follow-up with tax officers — ensuring your refunds are processed within the statutory timeline. Contact us today for expert GST refund assistance and explore our complete GST services.