The destination-based Goods and Services Tax (GST) was launched in the year 2017 to make India a unified market. Since its launch, there has been a surge in the collection of indirect taxes in the country to clear all pending GST refund claims. However, it also had its own challenges in the journey down the years. In this article, we will Discuss CBIC Launches Drive To Clear All Pending GST Refund Claims.
What does The GST Law say?
According to the GST law, individuals and businesses can go for GST Return Filing for the input refunds falling under different slabs of tax refund criteria.
Also, the GST department has to clear all pending GST refund claims within 2 months without any liability to pay interest. So, they are now working on a priority to clear all pending claims.
Central Board of Indirect Taxes and Customs (CBIC) Move
To expedite the process of refund, the Central Board of Indirect Taxes and Customs (CBIC) has recently launched a tax refund drive to offer some respite to the businesses which are severely reeling under the Covid-19 weather since past more than a year now.
The CBIC will run a special refund disposal campaign From May 15th to 31st, 2021 in India. The drive aims to help the business circumvent its liquidity issues after lockdowns and a curfew in many states is leading to severe losses for many businesses in the country.
However, the CBIC’s instruction, in its official notification, noted that officers should strive to settle claims as soon as possible to meet the statutory deadlines.
The CBIC has instructed its senior field officials to oversee and monitor the refund process performance on a daily basis to avoid any lag or delay in the settlement. While also urging its workers to work closely with industry bodies working in the interest of exporters and small businesses.
Expectation out of the Move
Undoubtedly, the special drive, if followed in letter and spirit, would provide great relief to the businesses who have GST Registration numbers. Especially the small and medium enterprises, which are struggling in the COVID-19 pandemic and lockdown situation. The move has the potential to bring liquidity in the market and hence can help to bring the businesses a sign of relief. And can boost the economy after the lockdown and COVID situation eases out.
Timeline for Revocation of GST Registration Cancellation extended
If you want any other guidance related to GST Registration or GST Return filing, please feel free to talk to our business advisors at 8881-069-069.
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