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Revenue Department to automate GST refunds for exporters in June

Published
today May 15, 2019
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The government’s Revenue Department plans to automate goods and services tax refunds for exporters by June. The move aims to speed up the claims process and increase scrutiny.

The government is working towards digitising more GST payments and refunds


As the government seeks to crack down on GST avoidance and fraud and to speed up the process, it plans to automate GST refunds for exporters next month, an official told the Press Trust of India. Automating the process would speed it up to around two weeks from the current time frame of around several months.

"The revenue department and GSTN is working to make the process of seeking tax refund by all exporters faceless by next month,” the official told the Press Trust of India. “It would make the process faster and also help in eliminating fake refunds."

Exporters have previously complained that the current process affects their working capital as they have to pay extra tax and wait a significant time for the refund, during which time they do not have the cash flow to conduct business efficiently.  

The government plan to fully automate the refund system would cover exporters of both goods and services as well as SEZ unit suppliers. At present, automatic refunds are only available to exporters who pay Integrated GST when exporting  but the new plan would work towards digitising the whole system. The government plans to digitise both the GST system and payments in general to reduce fake currency and fraud and increase control. 

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