Source: The Hindu BusinessLine
GST refunds are likely to be processed automatically for exporters of goods and services and suppliers to SEZ units from the month of June. The revenue department plans to introduce faceless scrutiny of refunds and faster claim settlement, an official said.
Every person making a claim of refund on account of ‘zero-rated’ supplies has two options. He can export without payment of integrated tax under Bond/ LUT and claim a refund of accumulated Input Tax Credit (ITC) or he may export on payment of integrated tax and claim refund thereof.
Presently, the automatic refund is available for those exporters who have paid IGST while exporting goods.
Since GSTN systems are integrated with Customs, refunds are transferred to the bank accounts of such exporters within a fortnight.
The manufacturing exporters and suppliers to SEZ, however, have to file an application in Form GST RFD-01A on the common portal. Next, they need to manually submit a print out of the form along with other documents to the jurisdictional officer.
Once implemented, the time period for such refunds will come down to about a fortnight from months at present.
“The revenue department and GSTN are working to make the process of seeking tax refund by all exporters faceless by next month. It would make the process faster and also help in eliminating false refunds,” an official told.
GST refunds of exporters run into thousands of crores and any delay in the processing of refund is said to block the working capital of exporters.
Create a free account to get access and start
creating something amazing right now!