Refund of advance received

This discussion clarifies how to handle refunds for advance payments where GST was paid on a receipt basis. The consensus is that a refund application is not necessary. Instead, you should issue a refund voucher and reduce your GST liability in GSTR-3B for the month the refund is issued, provided the recipient hasn't claimed Input Tax Credit (ITC). The transaction also needs to be reflected in GSTR-1.