GST and Custom refunds worth 18,000 crores to be released

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In an attempt to provide financial relief to the businesses hit by COVID, the Government announces to release refunds. The Government will issue GST and custom refunds to benefit around one-lakh markets, including Micro, Small, and Medium Enterprises (MSMEs). Thus, the total GST custom refund amount under the relief package will be approximately INR 18000 crores.

The Government will also release all the pending income tax refunds up to five lakh rupees immediately. It will provide further relief to individuals and small business entities.

Harpreet Singh, Partner at KPMG, gave his views. He said that the Government should make a refund process for income tax refunds up to 5 lakhs rupees easier. Further, the process for GST and Custom refunds is online. The online process will make things speedy. Besides, it will be without human intervention.

Governments are working hard to provide monetary and fiscal relief aid to the struggling economy. All businesses, whether small, medium, or large, all are affected by the impact of pandemic coronavirus.

The Government also lists specific other points in its relief package. They are as under:

  • Extension of GST returns filing date for the three months (March, April, and May) until 30 June 2020.
  • Extension of Composition returns for the quarter (January, February, and March) until 30 June 2020.
  • No interest, penalty, and fine for the companies with less than Rs. 5 crore turnover.
  • Speedy ITR and GST and Custom refund up to INR 5 lakhs.
  • Waiver for more prominent companies on late fees, fines, and penalties. Interest to be applicable at reduced rates i.e., 9% per annum.

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