Great news for all the taxpayers registered under the goods and services tax regime as the latest system of GSTN portal will be processing the GST refunds faster than the earlier version. GST Network, the IT Pillar of Indirect tax system, has unveiled online refund process as directed by the GST Council.
The new system by GSTN called as ‘Online Refund Processing and Single Disbursement’ is activated from 25th September 2019 while the older refund application before 25th September 2019 will be processed manually. This will increase the disbursement speed of refunds and further improve the GST compliance. Taxpayers can view the various stages of processing of their refund application on the GST Portal and can give replies to notice very easily, if any, online on the GST Portal.
There are some new features of GST refund Mechanism:
Refund status will be notified via SMS and Email at important stages of processing of their refund application;
Can track and view various stages of processing of their application ONLINE on their dashboard;
Can reply to their notices ONLINE on their dashboard; and
Faster disbursal of GST refund with minimum government officer inter-action.
What will be flow of GST Refund Application?
RFD-01- Online Refund Application to be filed by Assesse
RFD-02(Acknowledgement) – The tax officer shall issue RFD-02 electronically to the taxpayer. The taxpayer shall be able to view the acknowledgement in RFD-02 on his dashboard and through Email & SMS
RFD-03 (Deficiency Memo) – With the issuance of RFD-03, the ITC/ cash will be re-credited to the electronic credit ledger/cash ledger of the taxpayer. Taxpayer shall be able to view deficiency memo in RFD-03 on his dashboard. Once the RFD-03 has been issued against an ARN, taxpayer is required to file a fresh refund application. Taxpayer will receive communication through email and as well as SMS.
RFD-04 (Provisional Refund Order) – Taxpayer shall be able to view the provisional sanction order in RFD-04 on his dashboard and through Email and SMS.
RFD-05 (Payment Order) – Tax officer shall issue the RFD-05 electronically to the taxpayer. The tax officer is not required to send the copy of RFD-05 to the central nodal authority and state AAs.
RFD-06 (Final Refund Sanction / Rejection Order) – Tax officer shall issue RFD-06 electronically to the taxpayer. Tax payer can view RFD-06 on his dashboard.
RFD-07 (Withholding Order) – The tax officer shall issue RFD-07 electronically to the taxpayer. Tax payer can view RFD-06 on his dashboard and through Email & SMS.
RFD-08 (Show Cause Notice) – The tax officer shall issue RFD-08 electronically to the taxpayer. Tax payer can view RFD-06 on his dashboard and through Email & SMS. The taxpayer is expected to give a reply to the SCN within 15 days of receipt of the SCN. If the taxpayer does not respond within 15 days of the issuance of SCN, the tax officer can take action on the refund application.
RFD-09 (Reply to Show Cause Notice) – The taxpayer shall be able to reply to the SCN and upload supporting documents electronically through RFD-09.
PMT-03 (Order of Re-credit of Rejected Amount) – With the issuance of PMT-03, the inadmissible ITC shall get re-credited to the electronic credit ledger of the taxpayer automatically. Taxpayer is required to give an undertaking that he will not file an appeal against the refund order, if he/she desires to get a re-credit of the rejected amount. This undertaking has to be submitted to the tax officer manually.
This Online GST Refund System is definitely one step in “Ease of Doing Business”.
If you are looking to keep yourself updated about the recent compliances or requires assistance in filing of GST Refund, GST returns, GST assessments and GST audits, our team of experts can assist you in complying with the GST regime.
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