Exporters will no longer have to wait long to get a Goods and Services Tax (GST) refund. The government is soon going to create a system in which the Central GST and State GST refunds can be issued simultaneously by a single officer to ease the business process. Sources said that from this month the facility of issuing GST refund by single authority will start. Under this, if an exporter claims a refund with the SGST officer, that officer will approve it and send it to the CGST officer who will issue the CGST and SGST refund at his own level. At the end of the month, the central and state officials will adjust it among themselves.
This way the merchant will not be delayed in getting the refund. Necessary guidelines are being prepared to facilitate the issue of refunds through a single authority. This facility can also be discussed in the GST Council meeting to be held in Goa on 20 September. Council officials can give a detailed presentation on the issue to the state finance ministers. The need to introduce this facility has arisen because exporters have faced difficulty in getting refunds since the implementation of GST. This problem bothers the small and medium export manufacturing companies more because their cash flow stops in case of no refund. This also makes them difficult to fulfill further orders.
Even today, the GST refund claims of about Rs 10,000 crore of exporters are pending. Fio Director General Ajay Sahai told Dainik Jagran, “The proposal by the single authority to issue returns is a good initiative.” Exporters have been demanding this for a long time. Timely refunds will help exporters to expand business activities. It will also provide relief to manufacturing companies. ‘
Fio believes that this move of the government will also be helpful for the sluggish economy. It is worth mentioning that on 23 August, Finance Minister Nirmala Sitharaman announced that all pending GST refunds of MSME sector will be issued within 30 days and further. Any refunds that will follow will be released within two months. Subsequently, the Central Board of Direct Taxes and Customs (CBIC) has started a campaign to issue refunds from September 1 to 22. Under this, pending GST refunds are being issued to exporters.