Corruption in GST
Time limit for making Refund Application
A person claiming refund is required to file an application on the GST Portal in Form GST RFD-01 before the expiry of two years from the “relevant date” as given in the Explanation to Section 54 of the CGST/SGST Act.
Time limit for acknowledgement of Refund
The acknowledgement will be communicated in Form GST RFD-02 to the applicant within 15 days from the date of receipt of application complete in all respect.
Time limit in case of deficiencies
Deficiencies, if any, in the refund claim has to be pointed out within 15 days. A Form GST RFD-03 (Deficiency Memo) will be issued by the proper officer to the applicant pointing out the deficiencies through the common portal electronically requiring him to file a refund application after rectification of such deficiencies.
Time limit for sanctioning of Refund
Refund has to be sanctioned in Form GST RFD-06 within 60 days from the date of receipt of application - complete in all respects.
If refund is not sanctioned within the said period of 60 days, interest at the rate notified not exceeding 6% will have to be paid in accordance with Section 56 of the CGST/SGST Act
We have deposited INR 24276789.00 under reverse charge which is much beyond our financial capacity.
We have taken loans from bank for the GST obligations and in the belief that GST department would process timely refunds and in turn we would pay the banks on time.
Now the bank is behind us, since we are not able to pay back the loans taken.
Till date we have filed 4 GST refunds and awaiting INR 20065573.00 since April 2024.
Now since you have blocked all our working capital, and our bank accounts are nil now and we cannot run our basic daily requirements.
We will not be able to pay any GST and any kind of tax liability from next month.
What penalty you will put on us?
We are a MSME.
We must close our company now since next month we will have no money to pay salaries and rent.
We will not be able to deposit statutory dues such as PF and ESI for next month.
We hope immunity from GST department since you would be held accountable if we close our operations and fail in paying dues to banks/employees/taxes/vendors etc.
On a daily visit to the GST department since many months, we always hear from the officer that refunds for January 2024 and February 2024 are put on the table of commissioner for his final approval and the file for March 2024 refund is with a lady officer who is working on the same and now she is on leaves for her son’s marriage. For your information, the lady officer has not yet acknowledged the refund for March 2024.
We give employment to close to 600 people and most of them will be jobless now ,since we must terminate all.
There will be few hundred also jobless which will be affected who depends us on indirectly.
Do we have to go to High Court now? more
A person claiming refund is required to file an application on the GST Portal in Form GST RFD-01 before the expiry of two years from the “relevant date” as given in the Explanation to Section 54 of the CGST/SGST Act.
Time limit for acknowledgement of Refund
The acknowledgement will be communicated in Form GST RFD-02 to the applicant within 15 days from the date of receipt of application complete in all respect.
Time limit in case of deficiencies
Deficiencies, if any, in the refund claim has to be pointed out within 15 days. A Form GST RFD-03 (Deficiency Memo) will be issued by the proper officer to the applicant pointing out the deficiencies through the common portal electronically requiring him to file a refund application after rectification of such deficiencies.
Time limit for sanctioning of Refund
Refund has to be sanctioned in Form GST RFD-06 within 60 days from the date of receipt of application - complete in all respects.
If refund is not sanctioned within the said period of 60 days, interest at the rate notified not exceeding 6% will have to be paid in accordance with Section 56 of the CGST/SGST Act
We have deposited INR 24276789.00 under reverse charge which is much beyond our financial capacity.
We have taken loans from bank for the GST obligations and in the belief that GST department would process timely refunds and in turn we would pay the banks on time.
Now the bank is behind us, since we are not able to pay back the loans taken.
Till date we have filed 4 GST refunds and awaiting INR 20065573.00 since April 2024.
Now since you have blocked all our working capital, and our bank accounts are nil now and we cannot run our basic daily requirements.
We will not be able to pay any GST and any kind of tax liability from next month.
What penalty you will put on us?
We are a MSME.
We must close our company now since next month we will have no money to pay salaries and rent.
We will not be able to deposit statutory dues such as PF and ESI for next month.
We hope immunity from GST department since you would be held accountable if we close our operations and fail in paying dues to banks/employees/taxes/vendors etc.
On a daily visit to the GST department since many months, we always hear from the officer that refunds for January 2024 and February 2024 are put on the table of commissioner for his final approval and the file for March 2024 refund is with a lady officer who is working on the same and now she is on leaves for her son’s marriage. For your information, the lady officer has not yet acknowledged the refund for March 2024.
We give employment to close to 600 people and most of them will be jobless now ,since we must terminate all.
There will be few hundred also jobless which will be affected who depends us on indirectly.
Do we have to go to High Court now? more
Viewed by 427
View all 7 comments Below 7 comments
Please check this link if this helps anyway for you https://gstcouncil.gov.in/grievance-redressal-committee-grc more
Jan 10
Earlier commissioner was Dr Atish kumar who was transferred in December. Now Asha choudhary who is acting commissioner and will not and can not take any action more
Jan 09
Thank you Mr. Sharma. Every thing is within rules , no hiccup in file except money. we are packers and movers who handles outbound household shipment on behalf of customers , since is is export and exempted . we just need our GST money back which we paid to Govt , which is perfect within the rules . They say go and complain to modiji . As per them there are no time line to refund If I pay 8 % it will be done on same day . we are MSME adn our over 5 crore is stuck with them and they know we will not survive for long . Mine is 44 years old company and I am the first Indian to start this industry in India and will die slow death more
Jan 09
Reach out to GST Ombudsman S .No. Location Address 1 Delhi The Indirect Tax Ombudsman, New Delhi Room No. 580, 5th Floor, Hotel Samrat, Chanakyapuri, New Delhi – 110 021. Ph. No. 011-24672751/24102819, Fax: 011-24672751 2 Chennai O/o Indirect Tax Ombudsman, Chennai 26/1, Mahathma Gandhi Road, nungambakkam, Chennai – 600 034 E-mail id: indiataxommanchn@nic.in 3 Mumbai O/o Indirect Tax Ombudsman, Mumbai Utpad Shulk Bhavan. Plot No. C-24, Sector – E, Bandra-Kurla Complex, Bandra (East) Mumbai – 400 051 Phone No. 022-26572822. E-mail id: ombudsman-mum@nic.in 4 Lucknow O/o Indirect Tax Ombudsman 7-A, Ashok Marg, Lucknow Phone No. 0522-2233053 E-mail id: ombudsmanluck@gmail.com 5 Bangalore O/o Indirect Tax Ombudsman 7th Floor, ‘A’ Wing, Kendriya Sadan, Koramangala, Bangalore – 560 034. Phone No. 080-25522358, Fax – 080-25539506 E-mail id: ombudsman.indt.blr@gmail.com https://dor.gov.in/ombudsman more
Jan 08
Yes, corruption is a serious issue, but there must be some issues the dept picking and holding the refund which is not clear here. There must be notice issued with timeline to reply, or data requested by the dept. The entire things are not clear here but you can raise Grievance at https://selfservice.gstsystem.in/ReportIssue.aspx https://pgportal.gov.in Reach out to below : https://gstcouncil.gov.in/grievance-redressal-committee-grc more
Jan 08
