CBIC said that it is fully committed to helping the GST taxpayers in the present COVID-19 situation. Since 30th March 2020, CBIC has processed 12923 refund applications involving claims worth Rs. 5575 Cr. While in the last week itself, CBIC has processed 7873 claims worth.. 3854 Cr. CBIC said that a trade and business-friendly measure taken by CBIC .de its Circular No. 133 da.d 31.03.2020. help GST returns filers to facilitate early ITC refunds and to ensure that the wrong ITC claims are not processed in the absence of relevant information, is misconstrued in certain sections of social media and other media as troubling the taxpayers in COVID -19 like situation.
CBIC said that this measure was taken into effect with GST Council’s approval in its 39th Meeting held on 14.03.2020. mitigate delays in I’M refunds faced by the taxpayers besides ensuring that wrong ITC claims are not processed. It had been brought to the notice of GSTC by various stakeholders including the taxpayers. It was noticed that lot of time is spent in the verification of whether the credit was availed on services and Capital Goods in certain categories for the refund claims.
CBIC said that in order. address the difficulty faced by trade in providing this data at the time of processing of claim leading to delays and an increase in compliance cost, it was decided in the GST Council. make declaration of classification codes a part of the application itself. The GST Council in the same meeting has also decided. allow bunching of periods across financial years. facilitate claim of refund by exporters. This would apply to applications filed after 31.03.2020. It may also be noted that the due date of all such applications which were due during 20th March 2020 and 29th June 2020 has been extended to 30.06.2020.
CBIC explained that the Circular No. 133 (da.d 31.03.2020) is with regard to the requirement to give HSN/SAC code along Rith the refund application. The GST Law doesn’t allow refund of credit availed on service,s and/or Capital Goods in certain categories. For example, Capital Goods ITC refund is not permissible for re.. of ITC on account of exports and other zero-rated supplies. Further, ITC availed on services and capital goods are not allowed to be refunded in the Inverted Structure Refimd category.
