GST refunds: Incomplete claim memos stall GST refunds


New Delhi: Businesses facing a cashflow squeeze due to the lockdown are grappling with deficiency memos that have stalled the release of goods and service tax refunds even as the government announced measures to enhance liquidity amid the Covid-19 crisis.

Tax authorities have been issuing deficiency memos for some incomplete refund claims beyond the stipulated time of 15 days, forcing taxpayers to refile applications, people familiar with the development said. However, the refiled applications are treated as new and in many cases, the refund amounts end up getting blocked because the deadline has passed. The industry has represented the matter before the Central Board of Indirect Taxes and Customs.

“There are bona fide instances wherein the first refund applications were filed within the prescribed time limits but because of the error on the part of authorities, the deficiency memo was not provided within 15 days and when application is filed afresh, the same gets barred by time,” according to the representation to CBIC.


Source link

Articles You May Like

‘No Time to Die,’ ‘Ghostbusters: Afterlife,’ ‘Uncharted’ delayed
Stocks could ‘explode’ if Biden improves Covid vaccine rollout
As Biden takes office, China again calls for relations with the U.S. to ‘return to the right track’
release of fourth quarter, full-year 2020 GDP
Stock futures tick lower to end record-setting week

Leave a Reply

Your email address will not be published. Required fields are marked *