GST refunds to go to bank accounts filed with Customs
By Express News Service | Published: 13th October 2017 03:42 PM |
CHENNAI: With GST refunds for exporters set to begin rolling out, the government on Friday announced that the refunds would be deposited in the bank accounts they have filed with the Customs department and not in accounts mentioned in the GST registration forms.
Central Board of Excise and Customs (CBEC) has asked exporters to align their bank account details declared to the Customs with that of GST regime. GST rules mandate that these refunds are to be credited in the accounts mentioned in the registration particulars. However, exporters have also been declaring details of bank accounts to Customs authorities to facilitate drawbacks etc.
“In order to ensure smooth processing of refunds of IGST paid on exported goods, it has been decided that said refund amount shall be credited to the bank account of the exporter registered with customs even if it is different from the bank account of the applicant mentioned in his registration particulars,” the CBEC said.
However, the indirect tax authority admitted that there was a possibility that bank account details available with the customs department might not match with those declared in the GST registration form. In which case, it is advising exporters to either change bank account declared to customs to align it with their GST registration particulars or add the account declared with Customs in their GST registration details to prevent hassles.
Earlier, the government had stated that it would clear pending refunds by the end of November. Around Rs 67,000 crore of funds are estimated to have accumulated as IGST during July and August, of which refunds due to exporters are
estimated at under Rs 10,000 crore.