New Delhi: Recently, Finance Minister Nirmala Sitharaman made several announcements to give momentum to the Indian Economy. The Finance Minister had said about MSMEs that the process of GST refund for this sector will be completed in 30 days. Also, to maintain the working capital, the system has to be updated so that the process of GST refund takes a maximum of 60 days. This decision of the government has been welcomed by the MSME sector. However, he says that the processing time can be reduced further. The people of the sector demand that there should be a greater role at the state level in the process of refunds, as well as paper work to be reduced.
Animesh Saxena, president of FISME (Federation of Indian Micro Small & Medium Enterprises), said that most small firms fall under the purview of the state tax department. Merchants get both SGST and CGST refunds separately. CGST refund takes less time and troubles are also reduced. However, merchants face many difficulties in getting SGST refund. The representatives of the sector say that even when everything is going digital, why the time of 60 days? This work is also possible online and in 10 days.
If you look at the figures, by July 2019, 1.22 crore traders of the country have got GST registration (GSTN). According to the GST law, if a trader’s annual turnover is less than 1.5 crore, then he is under the state tax department. The process here is slow. At the same time, tax refunds for traders with annual turnover of more than 1.5 crore are half and half from the Central and State Tax Authority.
It is the collective opinion of businessmen that it is very difficult to get money from the government. To get their money, traders have to go to the tax department and make the officials happy. Perhaps this is the reason why the Finance Minister said recently that the government wants to abolish tax terrorism. Traders are requested to trade openly keeping in mind the rules and asked the tax authorities not to act as a bully to traders or taxpayers by misusing their position.