Good news has arrived for all the taxpayers registered under the goods and services tax regime as the latest system of GSTN portal will be processing the GST refunds faster than the earlier version.
Now the communication will be totally online between the tax officers and the taxpayers as the latest “Online Refund Processing and Single Disbursement” system will assist the taxpayers to file the refund application online.
The latest system by GSTN called as ‘Online Refund Processing and Single Disbursement’ which is activated from 25th September while the older refund application before 26th September will be processed manually.
Also, the CEO of GSTN Prakash Kumar said that the latest system will be fastening the disbursement of refunds and will further make the overall GST compliance faster and smoother.
Read More: Single-Window Facility for GST Refunds
The taxpayers will be given facility to check the refund status online and can also reply instantly. Also, there will be a facility to inform the taxpayer via email and SMS at every significant processing stage of refunds.
The CEO also added that “Most importantly, the payment of amount will now be done from one disbursement authority i.e. PFMS (Public Financial Management System) unlike the earlier method where sanction was done by one authority but payment was made by State and Central Authorities separately.”
The tax system will be analyzing the taxpayer having turnover below 1.5 crores in a ratio of 90:10 in which 90 percent will be taken by state administration and the 10 percent by central administration.
In the older GST tax refund mechanism the refund was processed by the single tax authority of both state and central authorities while the disbursement was processed by the accounting department of state and central individually.
This old system was responsible for the delay in refunds but in the latest refund system, the single tax authority will ensure that the refund amount gets credited to the taxpayer as soon as possible.
The taxpayers basically claim the refunds in the export section while there are other departments where the claim needs to be settled such as Input Tax Credit, inverted duty, refund of excess cash in cash ledger and more.
From now onwards the refund application will be processed online and on-property basis which will ensure the best and speedy refund to the taxpayers.
