A special drive has been launched by The Central Board of Indirect Taxes and Customs (CBIC) for clearing all the pending GST refunds by the end of this month. This is a 15-day GST refund drive which is in parallel to the similar drive that has been launched by CBIC for the purpose of refunding customs and claims of duty drawbacks.
In the wake of the second wave of Corona Pandemic, Instructions have been given to all the Principal Commissioners to keep the focus on the timely disposal of all the pending GST refund claims for the purpose of providing immediate relief to business organisations especially Micro, Small & Medium Enterprises ( MSME)
“It is hereby instructed that a ‘Special GST Refund Disposal Drive’ will be launched by all Central Tax formations during the period from 15th May 2021 to 31st May 2021 for processing and disposal of all pending GST refund claims on priority, it said.”
The CBIC further stated that the GST law of India allows 15 days for releasing deficiency or acknowledgement menu and a total of 60 days for the purpose of refunding claims without having any liability to pay the amount of interest.
“It is, however, expected that all Central Tax formations will take up all the pending GST refund claims for processing on priority and endeavour to dispose them of much earlier than the statutory time limits, preferably before a period of 30 days from the date of receipt of the refund application, the CBIC added.”
The motto of all the aforesaid actions is that all the GST refund claims that are pending till May 14 shall be disposed of by May 31, 2021.
Moreover, the tax authorities shall coordinate with the active trade and industry associations specifically those which are handling or in alliance with Micro, Small, and Medium Enterprises (MSMEs) or exporters by assisting and handholding of taxpayers for including submission/reply by the taxpayers who fill government exchequer.
Furthermore, The CBIC also instructed tax authorities to make sure that communication with taxpayers can only be done via the web portal of GST or if required through e-mail.
And finally, there should be wide publicity of the “Special Refund Disposal Drive” within the fraternity of traders and industrialists.
“It is urged that in these difficult times, all central tax officers should endeavour to make their best efforts and contribution in the fight against COVID-19, by liquidating the pending GST refund claims by May 31, 2021, the CBIC added.”
