The revenue department under GST have plans to introduce a faceless scrutiny of refunds to hasten the claim settlement process. If this plan rolls out, the exporters of goods and services in India as well as SEZ units will be able to claim their GST refunds Automatically from June onwards.
Under GST, an exporter claiming a refund on account of ‘zero-rated’ supplies can chose between the following 2 options
- Export the goods or services without making payment of IGST under a bond/LUT and claim a refund of the accumulated ITC.
- Export the goods and services by paying IGST and claim a refund of the same.
The facility to claim the refund automatically is available for exporters who have paid Integrated Goods and Services Tax (IGST) while exporting goods. Since the GST Network (GSTN) systems are integrated with Customs, the refunds are automatically transferred to the bank accounts of such exporters within a fortnight.
On the other hand, manufacturing exporters and suppliers to SEZ, claiming a refund of ITC, have to file an application in Form GST RFD-01A on the common portal and manually submit a print out of the form along with other documents to the jurisdictional officer.
( Sometimes, the refunds get stuck, you may read here to know why your export refunds are not getting processed)
With the implementation of automated GST Refunds, the revenue department gets
- Smarter – with faceless transaction process.
- Quicker – with reduced refund time.
- Safer – with the elimination of fake refunds.
How IRIS GST Software can help?
IRIS GST Software can help you at every step of the way from invoice generation to GST return filing, have a seamless GST reconciliation, and claim maximum Input Tax Credit!
By leveraging IRIS GST Software and IRIS IRP, businesses can simplify data integration, save time, and enhance the accuracy of their returns plus maximize their ITC claim.
Embracing this smooth invoice data flow not only ensures compliance but also facilitates effective financial management and fosters a more transparent and streamlined tax environment.
For any queries or to book a demo, visit our website or write us a mail at firstname.lastname@example.org.