“The cbic GST refund procedure complicates matters” | News Ludhiana
Ludhiana: Central Office of Indirect Taxes and Customs (CBIC) prescribed the detailed procedure to be followed by the GST Department from June 14 for the approval of the refund and the further prescribed procedure for its post-verification and examination for the filing of the appeal.
With this decision, the CBIC aims to put an end to fraudulent claims. However, the development is seen as a setback by tax experts and assessors, as it may cause delays in processing refunds.
tax specialist NK Thamman said: ‘Right now in most places the order to speak up for punishment or denial of reimbursement has not gone through. Now, the CBIC has requested the reimbursement sanctioning authority to pass a detailed speaking order and has also prescribed details that must be mentioned in this speaking order. The net effect of this is that in the initial period, there may be a delay in the passage of the reimbursement order, as the reimbursement sanctioning authority must establish the form of the speaking order and each order must contain a detailed reasoning for sanctioning or rejecting the order.
Thaman also added, “However, a detailed speaking order will be very useful for the taxpayers whose refund is rejected because he is able to know the detailed reasons for the rejection of the refund and will be able to defend the order effectively. rejection. ”
Jaswinder Singh Thukralpresident of Janta Nagar Small Manufacturers Association said: “The new procedure is nothing short of another blow to us. This will delay the processing of refunds, which are already given to businessmen at a slow pace. The new regulations are adopted to make the GST more complex and burdensome for businessmen to comply with. »