The Goods and Service Tax (GST) network on Saturday has taken a few decisions, one of them is to implement a fully electronic refund module for Input Tax Credit (ITC) refund. This new refund module will be implemented through Form GST RFD-01.
Bihar State Deputy CM Mr.Sushil Kumar Modi, who heads the group of ministers of GST network, said, refunding was a big issue, especially in last 30 months after the implementation of GST, they had decided to completely go online.
This fully electronic refund module will be implemented from the 24th of September 2019 and this process will go through a single source, either from Central GST authority or State GST authority.
At present, taxpayers using the Form GST RFD-01A for the refund is a replica of GST RFD-01. In the present refund process, a taxpayer has to fill in required details in GST website, then an acknowledgement will be generated along with the annexures.
A taxpayer has to submit all the relevant documents along with acknowledgement to the concerned jurisdictional officer. The jurisdictional officer will process the refund application further.
Mr Sushil Kumar Modi said that most of the present process done manually, which lacked transparency and took longer time. The present refund process will not hurt exporters, as they make payment through IGST.
Exporters refunds will be processed within a week time and till date, Rs.93,416 crore were refunded to them. He also added that, once the online process was implemented taxpayers will get the payment from Public Financial Management System.
Smt Nirmala Sitaraman, Hon’ble Union Finance Minister made announcements relating to measures to boost economic growth. In those measures, she announced that a fully electronic refund module (Form GST RFD-01) will be implemented by September 2019 end for a quick and automated refund of ITC. This new refund system is expected to monitor and speed up ITC refunds.
DVSR Anjaneyulu known as AJ, is a Chartered Accountant by profession. Loves to listening to music & spending time with family and friends.