Income Tax, GST and Customs Refund to be paid immediately By Rohit Kumar


Update Category Income Tax, GST and Customs Refund to be paid immediately
Update Source Press Release - Ministry of Finance – 8th April 2020
Release No. TM/GST/066 dated 10th April 2020
 
Press Release ID – 1612291 dated 8th April, 2020 by Ministry of Finance –

“IT Department to release all pending income tax refunds up to Rs 5 lakhs immediately ; Around 14 lakh taxpayers to benefit

All GST & CUSTOM refunds also to be released ; to provide benefit to around 1 lakh business entities including MSMEs

Rs 18,000 crore of total refund granted immediately
In the context of the COVID-19 situation and with a view to provide immediate relief to the business entities and individuals, it has been decided to issue all the pending income-tax refunds up to Rs. 5 lakh, immediately. This would benefit around 14 lakh taxpayers.
 
It has also been decided to issue all pending GST and Custom refunds which would provide benefit to around 1 lakh business entities, including MSME. Thus, the total refund granted will be approximately Rs. 18,000 crore.”
 
Our Comments –
 
In the wake of outbreak of Covid-19 (Corona Virus) the businesses specially MSME and professionals are reeling under shortage of cash, hence the step of the Government to release pending refunds is a welcome move. This step may provide a breather for few days. The details of implementation of the process is to be looked into.
 
GST Law provides for payment of 90% provisional refund within 7 days of receipt of application and even instructions to release 90% refund amount immediately would have been a better step.

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