Indore: Commissioner, state goods and service tax department (SGST), Raghvendra Singh assured that state government was working towards addressing the issue of SGST refunds and very soon, a policy on it would be formulated and accordingly, refunds will be released to the deserving receivers.
President MP Tax Law Bar Association, Ashwin Lakhotia said that “The assurance was given by Singh to a joint delegation of the association and Commercial Tax Practitioners Association (CTPA) on Wednesday as the delegation handed him over a memorandum demanding immediate commencement of refunds.
He informed that the commissioner also assured of discussing the matter with finance minister Jayant Malaiya so that a clear guideline can be released from the state government. In this contest an urgent meeting can also be called in a day or two to figure out the problem, he quoted Singh as saying.
Earlier, the delegation informed the commissioner about the provision in GST Act which says if any supplier export its goods or sell it to units located in the SEZ, total amount of the tax would be refunded within a fixed time period; otherwise, as per pre GST provisions the interest would be given on the amount.
But, in the absence of the clear guidelines in the matter, the refunds could not be started yet. SGST officers have approved very less refunds, but in the absence of the required direction from the state government, these refunds get stuck in the treasury, they said.
“Since the traders are yet to receive the refunds of IGST, CGST and SGST, it has been eight months, their working capital have been blocked. This situation is affecting trade heavily. Resultantly, the unacceptable delay of refund is discouraging the traders to supply to the SEZ units. This position may affect Indian export and government revenue collection in near future,” the delegation informed the commissioner.
It may be noted that central goods and service tax (CGST) department Indore will be organising ‘Refunds Fortnight’ from March 15 to 30 to release the refunds to the deserved taxpayers.