Automated GST refund for Indian exporters likely from June

Source: https://www.fibre2fashion.com

Exporters of goods and services and suppliers to units in special economic zones (SEZs) in India are reportedly expected to get goods and services tax (GST) refunds automatically from June with plans for faceless scrutiny of refunds and faster claim settlement. Automatic refund is available now only for exporters who have paid integrated goods and services tax (IGST).

Under GST, every person making a claim of refund on account of ‘zero-rated’ supplies has two options. Either he can export without payment of integrated tax under a letter of undertaking and claim a refund of accumulated Input Tax Credit (ITC) or he may export on payment of integrated tax and claim refund thereof.

Since the GST Network (GSTN) systems are integrated with customs, refunds are generally transferred to the bank accounts of such exporters within a fortnight.

However, manufacturing exporters and suppliers to SEZ, who want to claim a refund of ITC, have to file an application on the common portal and thereafter manually submit a printout 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, according to a news agency report.



Categories: Asia, Business, India, Textile

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