To ease the process of claiming GST refunds, the Finance Ministry has said that now simply submitting a printout of just one form to tax authorities would be enough.
To ease the process of claiming GST refunds, the Finance Ministry has said that now simply submitting a printout of ‘GSTR-2A’ form to tax authorities would be enough instead of giving invoices of all purchases in a month. Goods and Services Tax (GST) refund had become a big problem for businesses due to liquidity issues.
Now to ease the process, the government has said that only GSTR-2A, which is a purchase return auto-generated by the system, will be enough for claiming refunds. The government said that the GSTR-2A form will serve as an evidence, showing which a claimant can avail input tax credit (ITC).
However, in cases where the GSTR-2A form does not contain all details of all the invoices for which ITC is being claimed, tax authorities may ask for hard-copies of invoices. The government also clarified that if the GSTR-2A contains details of all the invoices, the tax officials cannot ask for a copy of invoices.
The government earlier initiated several GST refund fortnights for speedy and bulk settlement of claims alongside helping businesses with the due process. The government has cleared claims of over Rs 54,000 crore to exporters till July. Of the total amount, Integrated GST (IGST) refund was Rs 29,829 crore, a disposal rate of 93%. ITC claims of Rs 24,549 crore were also settled.
It was reported that some businesses were still facing troubles in getting refunds, to which the government had said that it devising a plan to expedite the process in cases where there have mistakes in giving details.