GST Network Has Started Online Refund Processing

Highlights

•    The taxpayers could now be able to file refund application (in RFD 01 form) easily and tax officers could process the same online.

•    All the communications between taxpayers as well as tax officers shall also be done online.

With the application of the new online system, GST refunds shall become seamless

Goods and Service Tax (GST) Network, which is the IT backbone of the indirect tax system, recently had unveiled an online refund procedure as decided by the GST Council.

The GST Network stated in a statement that by deploying the ‘Online Refund Processing and Single Disbursement’, it would facilitate taxpayers in order to file refund application (in RFD 01 form) online easily and also assist the tax officers to process the application there itself. All the communications amid the taxpayers as well as the tax officers shall also be done online.

The online refund process has become effectual from 25th September 2019. 

Previously, the refund processing has been completed for both Central as well as State GST through one tax authority towards whom the taxpayer was assigned administratively but the disbursement has been completed through accounting authorities of central as well as state tax departments separately.

This had lead towards delaying on account of sharing of sanction order with counterparty accounting authority through that tax authority. Also, the new system was done away with this and after processing is finished by the tax officer, the sanctioned sum would get credited to the bank account of the Taxpayer through PFMS System.

It was stated that the new refund process would boost the disbursement speed of refunds as well as further improve the GST compliance. Taxpayers could view the various stages of processing of their refund application on the GST Portal and could furnish replies to notice, if any, online on the GST Portal now.

They would also be given information by means of SMS and Email, at important stages of processing of their refund application, as well as, the payment of amount would now be done from one disbursement authority that is PFMS (Public Financial Management System) unlike the earlier method where sanction was done through one authority but payment was made by State and Central Authorities separately.

According to the system, all administrative control over 90% of taxpayers having turnover less than Rs. 1.5 crore was vested with State tax administration and over 10% with the Central tax administration. Furthermore, every administrative control over taxpayers having turnover more than Rs.1.5 crore was to be divided equally in the ratio of 50% each for the Central as well as State tax administration.

Meanwhile, every refund applications filed before 26th September 2019 shall be processed manually as done under the old refund process.

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Author:

eStartIndia Team