News

GST refunds: FinMin promises speedy disbursal, says over 90% of claims cleared

Our Bureau New Delhi | Updated on November 08, 2018

Exporters have been complaining about the delay in getting refunds, which has affected their liquidity and competitiveness   -  shylendrahoode

The Finance Ministry on Thursday assured exporters that there will not be any delay in Goods & Services Tax (GST) refunds.

Exporters have been complaining about the delay in getting refund which, in turn, is affecting liquidity and overall competitiveness. In a statement, the Ministry said that efforts are being made to clear all the pending refund claims, where ever requisite information is provided and found eligible.

The Ministry also solicited co-operation of the exporter community to ensure that they respond to the deficiency memos and errors communicated by Centre and State GST as well as Customs Authorities and also “exercise due diligence while filing GSTR 1 and GSTR 3B returns as well as Shipping Bills.”

The Ministry claimed that the disposal rate is consistently improving month-on-month. As on October 31, total GST refunds to the tune of ₹82,775 crore have been disposed by the CBIC and State authorities out of the total refund claims of ₹88,175 crore received so far which means 93.8 per cent claims have been disposed. “The pending GST refund claims amounting to ₹5,400 crore are being expeditiously processed so as to provide relief to eligible exporters. Refund claims without any deficiency are being cleared expeditiously,” it said.

It also mentioned that in case of IGST (Integrated Goods & Services Tax) refunds, about 93.27 per cent (₹42,935 crore) of the total claims (₹46,032 crore) transmitted to Customs from GSTN (Goods and Services Tax Network) as on October 31 have already been disposed. “The remaining claims amounting to ₹3,096 crore are held up on account of various deficiencies which have been communicated to exporters for remedial action,” it said.

In the case of RFD-01A (ITC or Input Tax Return Refund) claims, out of the total refund claims of ₹42,145 crore the pendency as on October 31 is ₹159 crore with the Centre and ₹2,146 crore with the States. Provisional/final order has been issued in case of refunds amounting to ₹34,602 crore. “In claims amounting to ₹5,239 crore, deficiency memos have been issued by respective GST authorities,” it said.

Published on November 08, 2018

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor