Businesses gear up to get GST refunds in fortnight-long drive, say top bizmen in Gujarat

Business bodies in Gujarat are gearing up to get their Goods and Services Tax (GST) refunds locked up in government treasury during the fortnight-long drive initiated by GST authorities at state and the centre. Businessmen say that most of the refunds pertain to Integrated GST (IGST) of exporters. Rs 1,145 crore worth refunds are pending in the ceramic sector and close to Rs500 crore worth of refunds are pending in chemicals and dye-stuffs.

The central finance ministry has begun a 15-day drive beginning May 31 to clear the GST refunds, many of them pending since July last year. However, PD Vaghela, commissioner of commercial tax in Gujarat said that while the drive is nationwide, it does not hold much significance in Gujarat they have cleared most of the refund, and whatever cases are pending are being treated on merits. “About 80% of State GST (SGST) have been issued prior to the drive. Of about Rs1,650 crore worth of refunds,  we have already refunded Rs1,350 crore have been issues. We are constantly monitoring the situation in the state through a specially created software,” Vaghela told DNA. 

He informed that there have been cases where applications of refunds were made online. In such cases, a physical copy is also sought and cases are being disposed of.

Industry bodies like Gujarat Chamber of Commerce and Industry (GCCI) and Confederation of All India Traders (CAIT) are have taken initiatives to enable their members to get a refund. 

CAIT national convenor, Pramod Bhagat said that it has invited applications from all its members to be presented to GST authorities during the drive. GCCI senior vice president Jaimin Vasa said that GCCI has also sought applications from businessmen on the basis of which representations will be made. GCCI has already gone to Gujarat High Court to expedite the refunds under GST regime.

“Applications are constantly pouring in. So far refunds worth Rs300 crore are estimated to be blocked under GST. Many businessmen are not even approaching us. If they bring their issues to our notice, we can represent them appropriately,” said Vasa.

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KG Kundariya, president of Morbi Ceramics Association said refunds close to Rs1,145 crore are pending with IGST. Bhupendra Patel, president of Gujarat Dye-stuffs Manufacturers Association said refunds close to Rs500 crore are pending mostly under IGST.