Currently, when you claim for GST refund with the central tax officer, you will receive only 50% of your money, the rest 50% will be cleared by state tax officer after verification.
Sometimes, even after sanction/payment of refund, the tax authority delays the GST refund. The two authorities – state and central settling the same refund adds to unnecessary complexities and inconvenience for the taxpayers. Meaning, you need to wait very long for the entire amount to get refunded.
To solve this issue, GOVT is coming up with a simple GST refund process.
Under the proposed ‘single authority mechanism’,
✔ You can claim your refund only once.
✔ Either Centre or state officer will check, assess and sanction full tax refund (both Central GST and State GST portion).
✔ State and central GOVT will do internal account adjustments to find out their share.
✔ This means you don’t have to wait long.
✔ It is no more difficult to get refunded. The process is simple too.
✔ With a faster refund, your cash flow improves, you will now have more capital to invest in your business.
All in all, this is a massive jump in ease of doing business! Have opinions on this? Comment below.
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