“It has been determined to problem all pending GST and Custom refunds which would supply profit to round 1 lakh enterprise entities, together with MSME. Thus, the full refund granted might be roughly Rs. 18,000 crore,” stated a press release.
The Government additionally stated it might present rapid reduction to the enterprise entities and people by releasing all the pending income-tax refunds up to Rs. 5 lakh, instantly. This would profit round 14 lakh taxpayers.
“Speedy online IT, GST and Customs refunds without human intervention, even upto Rs 5 lakh, should assuage the situation of MSMEs, who would be under extreme cash crunch,” stated Harpreet Singh, Partner, KPMG.
To present reduction to companies grappling with the financial affect of Covid 19, the Government on March 24 had prolonged the submitting of Return for the month of March, April and May 2020 and composition returns beneath GST June 30. The Finance Minister additionally stated firms which have lower than Rs 5 crore turnover won’t have to pay curiosity, late charge or penalty. For greater firms late charge and penalty won’t apply and solely curiosity at a decreased price of 9% might be charged.
However, taxpayers have been demanding extra and a major want was the refund of caught GST. “As a next step Government could look at, expediting issuance of benefits under Foreign Trade Policy i.e. Service Exports India Scheme (SEIS) and duty drawbacks. This could provide relief to lot of small service and goods exporters,” provides Singh.
According to MS Mani, Partner, Deloitte India, “In a scenario the place companies are planning of coping with money crunch conditions on resumption of operations, enabling GST refunds on a conflict footing could be help companies and energise them. Businesses which have borne the brunt of the lockdown could be enormously enthused on the prospect of getting GST refunds enabling faster resumption of operations.”