Simplifying the GST Refund Process: Highlights of the 47th GST Council Meeting
Are you tired of the complex and time-consuming GST refund process? Well, thereβs good news for you! The 47th GST Council Meeting held on 28th March 2020 introduced some significant changes to simplify the GST refund process. In this article, we will highlight the key takeaways from the meeting and how they can make the GST refund process hassle-free for businesses.
Introduction to GST Refund Process
Before we delve into the details of the 47th GST Council Meeting, letβs have a quick overview of the GST refund process. GST or Goods and Services Tax is an indirect tax levied on the supply of goods and services in India. Businesses registered under GST are eligible to claim refunds on taxes paid on inputs such as raw materials, capital goods, and services used in the production process. However, the refund process can be complicated, time-consuming, and prone to errors, leading to delays and financial losses for businesses.
Key Highlights of the 47th GST Council Meeting
The 47th GST Council Meeting aimed to address the challenges faced by businesses in the GST refund process and introduced several changes to simplify the process. Letβs take a look at the key highlights of the meeting.
Extension of the Refund Period
The Council extended the refund period for inverted duty structure cases from the current quarter to a maximum of one year from the relevant date. This move will provide relief to businesses that have been struggling to claim refunds due to the lengthy refund process.
Reduction in Late Fee Charges
To encourage the timely filing of refund applications, the Council reduced the late fee charges for GSTR-3B and GSTR-1 returns. Businesses filing GSTR-3B and GSTR-1 returns between 1st July 2020 to 30th September 2020 will be liable to pay a late fee of Rs. 500/- instead of Rs. 2000/-.
The Council introduced an automated refund process for exports of goods and services with effect from 24th March 2020. The process will ensure quick and hassle-free refunds to exporters, reducing the processing time to a maximum of three days.
Provisional Refund of 90% of Claimed Amount
To provide immediate relief to businesses, the Council introduced a new rule of granting a provisional refund of 90% of the claimed amount for refund applications filed on or after 26th March 2020. The provisional refund will be granted within seven days of filing the refund application, and the balance amount will be granted after due verification.
Simplified Refund Application Process
The Council simplified the refund application process by introducing a single refund application form for all types of refund claims. The new form will be applicable from 1st April 2020, reducing the paperwork and saving time for businesses.
The changes introduced in the 47th GST Council Meeting will go a long way in simplifying the GST refund process and providing relief to businesses struggling with the process. The extended refund period, reduction in late fee charges, automated refund process, provisional refund, and simplified refund application process will make the process hassle-free and less time-consuming for businesses.
1. What is the GST refund process?
The GST refund process allows businesses to claim refunds on taxes paid on inputs such as raw materials, capital goods, and services used in the production process.
2. What are the challenges faced by businesses in the GST refund process?
The GST refund process can be complicated, time-consuming, and prone to errors, leading to delays and financial losses for businesses.
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