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Automated GST refund for exporters by next month

Press Trust of India  |  New Delhi 

Exporters of goods and services as well as suppliers to SEZ units are likely to get GST refunds automatically from June as the revenue department plans to introduce faceless scrutiny of refunds and faster claim settlement, an said.

Under GST, every person making a claim of refund on account of 'zero-rated' supplies has two options. Either he can export without payment of integrated under Bond/ LUT and claim a refund of accumulated Input Credit (ITC) or he may export on payment of integrated and claim refund thereof.

Currently, the facility of automatic refund is available only for those exporters who have paid Integrated (IGST) while exporting goods. Since the GST Network (GSTN) systems are integrated with Customs, hence, refunds are generally transferred to the of such exporters within a fortnight.

However, manufacturing exporters and suppliers to SEZ, who want to claim a refund of ITC, have to file an application in Form GST RFD-01A on the common portal and thereafter manually submit a print out of the form along with other documents to the

Once implemented, the time period for such refunds will come down to about a fortnight from months at present.

"The revenue department and is working to make the process of seeking by all exporters faceless by next month. It would make the process faster and also help in eliminating fake refunds," an told

GST refunds of exporters run into thousands of crores and any delay in the processing of refund claims blocks working capital of exporters.

Partner said fully computerized in case of export of services would be based on a comprehensively integrated system which connects with RBI servers to track the receipt of payments and link them automatically with level information.

"Tax refunds for inverted duty structure could also be copiously automated in future, however, it would require system to be loaded with HSN-enabled level information by every vendor, so that only eligible tax credits could be processed without any human intercession, he added.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, May 13 2019. 16:56 IST