GST Network starts online refund processing, will help taxpayers in claims

GST Network lets taxpayers to file refund application (in RFD 01 form) easily and tax officers to process online.

GST Network, the IT backbone of the indirect tax system, on Thursday started an online refund process made by the GST Council.

The system lets taxpayers to file refund application (in RFD 01 form) easily and tax officers to process online, said the Network in a statement.

All communications between taxpayers and tax officers will also be online. The online refund process has become effective from September 25, 2019, on the GST portal, it said.

Earlier, the refund process was done for both Central and State GST by one tax authority to whom the taxpayer was assigned administratively but disbursement was done by accounting authorities of central and state tax departments separately.

This was leading to a delay on account of sharing of sanction order with counterparty accounting authority through that tax authority, it said.

The new system has done away with this and after processing is completed by the tax officer, the sanctioned amount will get credited to the bank account of the Taxpayer through PFMS System, it said.

GST Network CEO Prakash Kumar said the new refund process will create a seamless experience for both taxpayers and tax officers.

"This will boost the disbursement speed of refunds and further improve the GST compliance. Taxpayers can view the various stages of processing of their refund application on the GST Portal and can give replies to notice, if any, online on the GST Portal now," he said.

They will also be given information through text message and e-mail, at important stages of processing of their refund application. The payment of amount will now be done from one disbursement authority, PFMS unlike the earlier method where sanction was done by one authority but payment was made by State and Central Authorities separately.

Meanwhile, all refund applications filed before September 26, 2019 will be processed manually as done under the old refund process.