Good news for businesses! Centre launches GST refund drive to settle claims by THIS date

New Delhi: In a bid to offer some respite to businesses reeling down under the Covid-19 weather, the Central Board of Indirect Taxes and Customs (CBIC) has launched a tax refund drive. 

The announcement, that was made on Saturday (May 16), is aimed at helping business dodge their liquidity issues after lockdowns and curfews in many Indian states is leading to severe losses for many businesses in the country. 

The special GST refund disposal drive will run from 15 May to 31 May 2021, according to the official CBIC notification. The purpose of the drive is to process and dispose of all pending GST refund claims on priority, CBIC said. “It is expected that during this special drive, all GST refund claims, pending as on 14 May, shall be disposed of by 31 May," CBIC’s instruction to its field officers noted.

According to the GST law, the tax department has to dispose of refund claims within a total of 60 days without any liability to pay interest. Therefore, the department is now looking to clear all GST refund claims on a priority basis. 

However, the CBIC’s instruction noted that officers should strive to settle claims as soon as possible to meet the statutory deadlines. The department also said that it will try to dispose of the claim preferably within 30 days after receiving the refund application.

Senior field officials have been asked to oversee the refund processing performance daily to improve the settlement speed, while urging its workers to work hand in hand with industry bodies working in the interest of exporters and small businesses.