SME Times News Bureau | 14 May, 2019
The
Central Board of Indirect Taxes & Customs (CBIC) has decided to process the
input tax credit (ITC) claims online, said an official.
The move
is expected to give exporters a big relief as it will reduce the ITC settlement
time from a few months now to a fortnight and also clear the clogged working
capital fast.
"The new automated process will be in place from June. We were attempting
to do the same from April, but it got slightly delayed," said an official.
The automatic refund facility is currently available only to those exporters
who have paid the integrated goods and services tax (IGST) while exporting
goods.
At present, exporters claiming ITC refund have to file an application in Form
GST RFD-01A on the common portal and then physically submit its printout along
with other documents to the jurisdictional officer.
M.S. Mani, Partner, Deloitte India, said while the goods and services (GST) law
had an inbuilt provision for faster refunds, operationalising the same would
really ease the working capital challenges of exporters.
"It is now essential for businesses to ensure that data required for
processing refunds is available in the GST portal. The processing can start
only when all relevant details are available online," said Mani.