31st GST Council Meeting: GST Refunds to get Faster & Easier
It is beyond any doubt the recently held 31st GST council meeting has sought to eliminate many uncertainties from minds of general taxpayers having GST registration. And the GST authority has undoubtedly played it well by introducing a number of relaxation for the taxpayers as well as the merchants who have GST registration, by way of implementing several rate cuts on many goods and services.
- As a matter of fact, GST rates have been brought down on 33 essential goods from 18% to 12% and 5%. That means, 33 items have been removed from 18% GST slab.
- Apart from that, there are 6 items out of 34 that have been excluded from the 28% GST rate slab.
- Now, we have only 28 items under 28% GST slab.
Besides, the GST council has made several amendments in the GST mechanism in order to rationalize it for the taxpayers having GST registration. Most importantly, the council has eased the process of GST refunds.
Notably, over GST refunds of â‚¹82,775 crore have been cleared to the exporters who have GST registration along with the unique Import Export Code. Besides, over â‚¹5,400 crores are still pending as reported on October 31, 2018.
In order to accelerate the refunds process, the GST council has introduced a series of reforms in its 31st meeting. These have been explained below.
#1. How shall the document be submitted for availing GST refunds?
The council has clearly stated that all the supporting documents and GST invoices with respect to GST refund claims shall now be uploaded online along with the refund FORM GST RFD-01A on the GST portal while filing the GST refund application.
Earlier the taxpayer would have to physically make a visit to a nearby tax office for manual submission of the GST refund application. This online refund application functionality will be enabled on the GST portal very shortly.
#2. What are the additional types of GST refunds that can be availed?
The council has said that now, some other types of refunds shall also be available through FORM GST RFD-01A:
- Refunds that are traced while Assessment, Provisional Assessment or Appeal or any Other similar Order;
- GST incurred on an intra-State supply, which was subsequently considered to be inter-State supply or vice-versa;
- Surplus payment of GST; and
- Any other types of refunds (valid).
#3. What if a refund doesn’t fall under any of the above categories?
There are some refund application has been filed for GST refund by a taxpayer having GST registration in FORM GST RFD-01A which were generated on the GST portal before the introduction of the functionality mentioned above, and that has not been submitted in the jurisdictional GST tax office within 60 days of the generating the ARN.
- The claimants of such refund shall be sent messages on their registered mail ids containing data about where to online submit such GST refund application.
- Now, if the refund application is not submitted within 15 days of the date of the sent mail, the refund applications shall be rejected there & then.
- The debited GST amount shall now be re-credited to the claimant’s electronic credit ledger.
- This will, however, exclude those refund applications related to refund of excess balance in the electronic cash ledger.
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