Good news has arrived for all the taxpayers registered under the goods and services tax regime as the latest system of GSTN portal will be processing the GST refunds faster than the earlier version. GST Network, the IT backbone of the indirect tax system, from 25th Sept 2019 started an online refund process made by the GST Council.
The latest system by GSTN called as ‘Online Refund Processing and Single Disbursement’ which is activated from 25th September 2019 while the older refund application before 25th September 2019 will be processed manually.
Some of Procedure mechanism regarding New Online GST Refund:
- When new system of GST Refund mechanism will start?
The new ‘Online Refund Processing and Single Disbursement’ started from 25th Sept
- What about old refund application submitted prior to 25th Sept 2019?
Old refund application will be proceed as per old procedure only. It will not be shifted to new
- What are some features of new GST refund Mechanism?
- Refund status will be notified via SMS and Email at important stages of processing of their refund application.
- Can track and view various stages of processing of their application ONLINE on their dashboard.
- Can reply to their notices ONLINE on their dashboard.
- Faster disbursal of GST refund with minimum government officer inter-action
- What care to be taken regarding Bank account?
- The bank account details mentioned in the refund application shall be validated by PFMS after filing of RFD-01. The taxpayers must ensure that the bank account details selected in the refund application are valid and correct.
- The taxpayer will need to change/ edit the bank account details (through non-core amendment in registration in REG-14) if there is failure of bank account validation by PFMS. After performing this step, the taxpayer needs to enter the updated bank account by clicking on ‘Update Bank Account’ functionality provided with the ARN of the refund application.
- The taxpayer shall be able to view the status of bank account validation on his dashboard. It will also be communicated through e-mail/ SMS.
- What will be flow of GST Refund Application?
Online Refund Application to be filed by Assesses.
Earlier, all of the above procedure was manual which was taking un-necessary time at each stage. Also the refund process was done for both Central and State GST by one tax authority to whom the taxpayer was assigned administratively but disbursement was done by accounting authorities of central and state tax departments separately. This was leading to a delay on account of sharing of sanction order with counterparty accounting authority through that tax authority, it said.
The new system has done away with this and after processing is completed by the tax officer, the sanctioned amount will get credited to the bank account of the Taxpayer through PFMS System,.
The new system will boost the disbursement speed of refunds and further improve the GST compliance and through internal checks, system is going to ensure that no fraud refund is sanctioned.
This Online GST Refund System is definitely one step in “Ease of Doing Business”.