The CBIC has asked their field officers to avoid asking for physical submission of documents from entities, who are claiming GST and customs refunds. CBIC is running a ”Special Refund and Drawback Disposal Drive” this month to clear ₹18,000 crore pending refunds. All communication by field offices must be done using official email IDs and the prescribed process doesn’t warrant any physical submission of documents and any such practice must be avoided.
In addition to this, in the given scenario where states have to fight very hard to overcome financial crisis due to covid-19 lockdown, Union government is exploring ways to raise a loan to pay the shortfall of the Goods and Services Tax (GST) compensation amount to States.
The government of India resisting suggestions to pay the shortfall from the Consolidated Fund of India and the option of raising a loan on the cess account was already discussed and the loan accrued would be paid from cess accruals in the future.
For December 2019 and January 2020, the Central government owes around ₹30,000-35,000 crore as compensation and around ₹30,000 crore for February and March. The government had last week released ₹14,103 crore to States as the second tranche of compensation for October and November 2019. It paid ₹19,950 crore in February for these two months.
Bank’s outreach agents, called as business correspondents or bank mitras, have sought for an immediate rebate on all their tax-related obligations such as GST and TDS along with a special hardship allowance for a period of at least six months from now.
They have alleged that banks are passing on added tax liabilities on their agents operating in rural areas and underbanked urban localities, thereby affecting their daily livelihoods. This is having an impact on their ability to operate smoothly, hindering timely disbursement of government’s ₹1.75 lakh crore relief package to needy people. Banks load their 50% GST loss on BC Agent fee which makes the GST 150%. They plead that GST on fee for BC services be made NIL immediately.
They have also sought a monthly fixed income of ₹5000 for all BC agents along with a share of incentive on fee charged on digital transactions through their micro-ATM networks.These agents are typically small kirana shop owners or merchants who partner with banks to extend key banking services such as withdrawals, deposits and domestic remittances in localities without branches or ATMs.