{"id":35002,"date":"2018-10-31T14:44:31","date_gmt":"2018-10-31T09:14:31","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=35002"},"modified":"2018-10-31T14:44:31","modified_gmt":"2018-10-31T09:14:31","slug":"centre-to-hasten-gst-refunds","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/centre-to-hasten-gst-refunds\/","title":{"rendered":"Centre to hasten GST refunds:\u00a0"},"content":{"rendered":"

Centre to hasten GST refunds<\/span><\/a>:\u00a0<\/span><\/p>\n

Context<\/b><\/p>\n

The Centre on Friday termed as \u201cwild estimates,\u201d exporters claiming that working capital was getting blocked due to delay in Goods and Services Tax (GST) refunds.<\/span><\/p>\n

What is GST?<\/b><\/p>\n

\u00a0It is a destination based tax on consumption of goods and services. \u00a0It is proposed to be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff. \u00a0\u00a0In a nutshell, only value addition will be taxed and burden of tax is to be borne by the final consumer. <\/span><\/p>\n

\u00a0The tax would accrue to the taxing authority which has jurisdiction over the place of consumption which is also termed as place of supply. <\/span><\/p>\n

What is a tax REFUND?<\/b><\/p>\n

Timely refund mechanism is essential in tax administration, as it facilitates trade through the release of blocked funds for working capital, expansion and modernisation of existing business.<\/span><\/p>\n

The provisions pertaining to refund contained in the GST law aim to streamline and standardise the refund procedures under GST regime. Thus, under the GST regime, there will be a standardised form for making any claim for refunds. The claim and sanctioning procedure will be completely online and time bound, which is a marked departure from the existing time consuming and cumbersome procedure.<\/span><\/p>\n

Situations Leading to Refund Claims<\/b><\/p>\n

A claim for refund may arise on account of:<\/b><\/p>\n