Join What's App Group for Pharma Jobs

GST refund processing online initiated by GST Netwrok

GST (IT backbone of the indirect tax system) Network brings relief for the taxpayers where they will be able to claim refunds online from Thursday onwards. This new system will allow the taxpayers to file refund application online (in RFD 01 form) easily and also tax officers to process online. The online refund process has become effective from September 25, 2019, on the GST portal.Furthermore, all communications between taxpayers and tax officers will also take place online. However, all refund applications filed before September 26, 2019 will be processed manually as done under the old refund process.

As per the earlier provisions, the refund process was done for both Central and State GST by one tax authority to whom the taxpayer was assigned administratively but disbursement was done by accounting authorities of central and state tax departments separately.

Such dual process was leading to a delay on account of sharing of sanction order with counterparty accounting authority through that tax authority and leads to the blockage of working capital of the taxpayers.

Now, the new online system has eliminated the delay process and once the processing of refund is completed by the tax officer, the sanctioned amount will get credited to the bank account of the Taxpayer through PFMS System.

GST Network CEO Prakash Kumar said the new refund process will create a seamless experience for both taxpayers and tax officers.

Further added “This will boost the disbursement speed of refunds and further improve the GST compliance. Taxpayers can view the various stages of processing of their refund application on the GST Portal and can give replies to notice, if any, online on the GST Portal now”.

Another advantage of the system is that the taxpayers will also be able to receive information through text message and e-mail, at important stages of processing of their refund application. The payment of amount will now be done from one disbursement authority, PFMS unlike the earlier method where sanction was done by one authority but payment was made by State and Central Authorities separately.

Author: Niranjan Reddy

Leave a Reply