13 Jun 2018Posted By: Mudit Handa

How has the GST Department managed to clear ₹7K crore GST refunds in just 9 days?

It is no hyperbole that our nation is all set to witness a sort of fiscal revolution. Unquestionably, the all-new era of the Goods and Service Tax regime is the precursor of this fiscal revolution, as can be clearly perceived from the massive GST collections and increase in the compliance rate. There is no doubt that the new indirect tax regime had marked its genesis on a very weak fiscal foundation. Resultantly, the complications and slight stoppages were commonly witnessed. To much extent, what had been at the root of this problem was the conceptual naiveness of the general public who have undergone New GST registration.

Still and all, the status quo in this regard is tremendously transforming for good, just as it has been aired by the Central Board of Indirect Taxes and Customs (CBIC) that over ₹7,000 crore worth of GST refunds of the traders and exporters have been cleared. This is exactly half of the total amount of the GST refunds that had been stuck due to mismatches and technical glitches.


#1. How has the GST authority managed to overcome the blockage of GST refunds?

The proclamation from CBIC has come in the wake of the Special Refund Fortnight that it had held from May 31 to June 14, 2018, as to settle the accumulated refund claims amounting to ₹14,000 crore, pertaining to IGST on exports and GST input credit.

The department had installed a fast-track mechanism for prompt clearance of the IGST & ITC claims, which has now seemed to have efficiently worked out up to a great extent.


#2. What was the reason behind organising the GST Refund Fortnight?

The prime cause behind the logjam of GST refund process has been incomplete details and mismatch in the GST return filing procedure from the end of the traders who have undergone GST registration, apart from the faulty shipping bills filed by the exporters.


The special GST Refund Fortnight was held by CBIC in order to rule out such mismatches.


#3. How successful has been the government's GST refund programme?

The authority has been able to exhibit remarkable result within 9 days of this special drive, as measures are being successfully implemented by the government to reduce the backlog of refunds. Over 50% of total accumulated GST refunds have been cleared as yet.


#4. What is the status of the IGST refunds after the beginning of this programme?

The ongoing measures for settlement of IGST refunds in exports have worked out with roaring success.

  • Delhi customs zone has rectified over 12,000 shipping bills within 8 days and has reportedly cleared up IGST refunds amounting to ₹290 crore.
  • Apart from that, the customs department has been able to correct 8,000 shipping bills of the exporters.
  • With rectification of these shipping bills, around ₹143 crore of IGST and ₹194.75 crore of Rebate of State Levies (RoSL) has been settled till June 8.


#5. How did the authorities manage to sort out the IGST refunds so promptly?

Besides auditing, the GST department had directed the exporters and traders before the Refund Fortnight to visit their jurisdictional GST office or nearest Custom House (Port), with their Import Export Code to get their pending GST claims reconciled. Their grievances were duly and promptly redressed.   


#6. What are the prospective measures to be taken during this drive?

The GST department is now trying to go through around 26,000 more shipping bills, which are still erroneous owing to incomplete documentation and information, get them reconciled within next few days of the special drive.


If you seek any other assistance regarding GST registration in India, feel free to contact us at 8881-069-069.








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