GST Portal Now Upgraded With an Online Refund Processing Feature

On 25 September 2019, the online GST refund process has been launched as determined by the GST Council. The new feature of online refunding is functional on the GST portal. 

The online refund feature will let taxpayers file refund application via RFD-01 Form easily. Tax officers will, now, process the applications online. GST Network stated that all communications between taxpayers and tax officers will be carried out online going forward. 

Previously, the refund processing was handled by a tax authority that handled both Central and State GST. Taxpayers were assigned administratively but accounting authorities of central and state tax departments made the disbursements separately. This arrangement led to a delay in sharing of the sanction order with counterparty accounting authority through the tax authority.

Also Read: CBIC clarifies the applicability of the scheme on pre-GST legacy cases

The new system has all these pitfalls covered; once the application is processed by the tax officer, the sanctioned amount will get credited to the taxpayer’s bank account through Public Financial Management System (PFMS). It is expected to make the lives of both tax officers and taxpayers easy.

As a result of this new system, the disbursement speed of refunds will be quick. Further, it also improves the GST compliance. The online system is made such that the process remains transparent; taxpayers can view the various stages through which their refund application progresses. 

They also receive updates when their application is going through important stages via SMS and email. Also, the refund disbursement will be done by one authority, unlike the earlier procedure where State and Central authorities made payment separately.

However, all refund applications filed on or before 26 September 2019 will be processed manually as per the conventional method.

For any clarifications/feedback on the topic, please contact the writer at

You May Also Like

Taxation of dividend income received on or after 1 April 2020 (FY 2020-21)

You may receive a dividend from your equity or mutual fund investments.…

Know the taxation rules for income F&O trading

Futures and options are stock derivatives that are traded in the stock…

Important Cash Transaction Limits and Penalties Under Income Tax That You Need to Know About

In India, there are a lot of transactions that go unaccounted for,…

What is the TDS provision for rent paid by individuals above Rs 50,000?

Many people are unaware of TDS provisions while paying rent on the…