GST refund, income tax refund soon; FinMin gives immediate tax relief to lakhs of businesses, taxpayers

Long pending GST refunds, customs refunds, and income tax refunds will soon be credited into your accounts as the government has decided to provide immediate tax relief to about 1 lakh businesses and 14 lakh taxpayers. With this, the ministry of finance will provide a total tax refund to the tune of Rs 18000 crore. The move is seen as an extension of the relief measures worth Rs 1.7 lakh crore announced by Finance Minister Nirmala Sitharaman and monetary measures announced by RBI Governor Shaktikanta Das.

The statement issued by the ministry said that the pending income-tax refunds up to Rs 5 lakh will be credited with immediate effect and the decision has been taken in the context of Covid-19 pandemic. As businesses across the country are suffering from the effect of the ongoing lockdown, the government seems to leave no stone unturned. Before today’s announcement, the Central Board of Indirect Taxes and Customs (CBIC) announced immediate relief measures for traders.

CBIC allowed businesses to import and export goods without furnishing bonds to the customs authorities till the end of the month. It also said that importers and exporters will have to furnish an undertaking to the customs authorities till April 30 in lieu of the bonds. Besides multiple measures to boost the businesses, the Reserve Bank of India had also extended the period of realisation of the value of exports to 15 months from the date of export, which was 9 months before this. The move was aimed at enabling the exporters to realise their receipts, especially from COVID-19 affected countries within the extended period and to enhance the negotiating power with them.