As agreed by the GST Council, GST Network, the IT backbone of the indirect tax system, announced on Thursday an electronic refund process.
Taxpayers can now easily file a refund request (in RFD 01 form) with the implementation of online refund technology and tax officers can process the same electronically, GST Network said in a release.
Both communication will also be online between taxpayers and tax officers. As of September 25, 2019, the electronic refund process came into effect on the GST website, it said.
Previously, the processing of the refund was carried out by one central and state GST tax authority to which the taxpayer was assigned administratively but disbursed separately by central and state tax authorities.
This led to a pause in exchanging the penalty order with counter party accounting authority through that tax authority, it said.
This has been replaced by the new system and is done by the tax officer after collection. The penalized sum will be credited through the PFMS process to the Taxpayer’s bank account, he said.
Prakash Kumar, CEO of the GST Network, said the new refund process would create a seamless experience for taxpayers and tax officers alike.
“This will increase the pace of disbursement of refunds and further enhance compliance with GST. Taxpayers can now view the different stages of processing their refund request on the GST portal and can provide answers to the GST portal online, if any,” he said.
They will also receive information via SMS and Email, he said, adding most importantly that the payment of the sum will now be made from one disbursement authority i.e. at important stages of processing their refund request. PFMS unlike the earlier one-authority sanction system, but the payment was made separately by the State and Central Authorities.
Meanwhile, all requests for reimbursement submitted before September 26, 2019 will be handled manually as per the old process of reimbursement.