GST: Joint Committee submits report on business processes

A Joint Committee on Business Processes for Goods and Service Tax (GST), set up by the Empowered Committee on GST, has submitted three draft reports on refunds, payment process and registration.

The Ministry of Finance has made these reports available on their website for public comments.

The Joint Committee has recommended, among other things, that the refund, arising on various grounds, would be granted only if the incidence of GST paid by a trader has not been passed on to the consumer.  Up to 90% of the refund claimed by the taxpayer may be  sanctioned  automatically  by  the  system.  The balance   amount   of   refund   may   be   granted   after   completion   of verification of documents and accounts to be  done  at  the  end of  the financial year and to be completed within a period of three months.  Partial refund may not be  allowed.

The Committee recommended that GST Law may provide for certain predefined period during which refund may not be granted and  entire  refund  claim  may  be  sanctioned  within  the  time limit laid down in the GST Law.

It has also proposed a tax Refund for International Tourist scheme under which foreign tourists can get tax refunds for purchases made from approved shops.