Online Refund Processing and Single Disbursement under GST

GST Network developed and implemented 100% Electronic Refund Process

New Delhi, September 26, 2019: As decided by the GST Council, the refund processing by tax officers have been made online and disbursal through a single authority.

The refund is sought by taxpayers largely on account of exports. The other categories are for a refund of excess Input Tax Credit, inverted duty (where tax on inputs is higher than the tax on output), refund of excess cash in cash ledger
etc. As far as refund of export of goods on payment of IGST is concerned, the same has been fully online since inception where the return (GSTR-1) of the taxpayer is treated as refund application. After filing of GSTR-01 and GSTR3B, GST System processes the refund and shares the export invoice data along with details like shipping bills, port code etc. with a Customs System called ICEGATE, which then matches the details with shipping bills in its system and status of refund claimed on the same. Based on this, the eligible amount gets transferred to the bank account of taxpayers thru PFMS system of the Government. More than half of refund amount goes thru this route. Till date more than Rs 95,000crores has been refunded under this method.

For other set of refunds like export of services, inverted duty structure cases, accumulated ITC etc., the taxpayers applied for refunds online, on the GST Portal, along with the required statements in RFD 01-A form. The refund
application was transmitted electronically to the dashboard of the tax officer. However, the processing of the refund application by the tax officer was done manually, which included issue of deficiency memo, sow cause notice, payment advice, refund order etc.


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