Lok Sabha Question No. 193 (UNSTARRED), answered on 2018-02-02
Subject: Refund/Adjustment of Excess GST
Ministry: FINANCE
Asked by: PINAKI MISRA

## 193. SHRI PINAKI MISRA:

Will the Minister of FINANCE be pleased to state:

- a) whether about Rs. 2 lakh crore of traders' money as excess tax is stuck with the Government since the launch of Goods and Services Tax (GST) in July, 2017 and if so, the details thereof;
- b) whether the said money is stuck due to technology issues and irrational tax rates under GST forcing several traders to shut their business and if so, the details thereof;
- c) the details of action being taken by the Government to either refund or adjust such excess tax paid by the traders under GST; and
- d) whether the tax department has no clarity to deal with this excess money of traders and if so, the details thereof?

## ANSWER MINISTER OF STATE IN MINISTRY OF FINANCE (SHRI SHIV PRATAP SHUKLA)

(a) and (b): Section 59 of the Central Goods and Services Tax Act, 2017 specifies that every registered person shall  self-assess  the  taxes  payable  and  furnish  a  return  for  each  tax  period.  The  Goods  and Services  Tax  (GST)  rate  structure  for  goods  has  been  notified.  For  convenience,  goods  have  been organised Goods and Services Tax (GST) rate-wise in Schedules I to VII. Accordingly, the taxpayer can determine  his  tax  liability  and  discharge  the  due  amount  as  Goods  and  Services  Tax  (GST).  The Government  has  devised  an  elaborate  refund  mechanism  to  refund  excess  tax,  if  any,  paid  by  the taxpayer as explained in part (c).

Subsequent  to  implementation  of  Goods  and  Services  Tax  (GST),  the  Government  is  taking  regular feedback  from  all  the  stakeholders  like  tax  consultants,  trade  and  industry,  taxpayers  about  issues related to Goods and Services Tax (GST) including rate structure. These issues are discussed in the Goods and Services Tax Council meetings. On the basis of the Council's recommendations, the rate structure  is  reviewed  from  time to  time.  The  changes recommended by  the  Council  have  been  given effect through notifications issued under section 9 or 11 of the CGST/SGST or section 5 of the IGST Act, 2017. In its 23 rd  meeting, Goods and Services Tax Council shifted 178 items of daily use from the top tax bracket of 28 per cent to 18 per cent.

(c) The process of refund of integrated tax paid on export of goods is online. In this regard, Circular No. 42/2017 - Customs dated 07.11.2017 has been issued detailing the solutions to common errors in filing of  such  claims.  Further,  Notification  No.  3/2017  -  Central  Tax  dated  23.01.2018  has  been  issued  to enable  manual  intervention  of  Customs  Officers  wherever  necessary  for  speedy  processing  of  such refund claims. Till 29.01.2018, an amount of Rs.1818.4 crore has been paid as refund.

In case of other types of refunds, it has been decided by the Goods and Services Tax Council to provide for manual application, processing and sanction of refunds. The detailed procedure has been laid down in two Circulars No. 17/17/2017 dated 15.11.2017 and No. 24/24/2017 dated 21.12.2017 to assist the taxpayers in filing the refund claims. Till 29.01.2018, an amount of Rs. 1074.3 crore has been paid as refunds under this category.

- (d) Does not arise.

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA UNSTARRED QUESTION NO. 193

TO BE ANSWERED ON FRIDAY, THE 2 nd  FEBRUARY, 2018, 13 MAGHA, SAKA 1939

## Refund / Adjustment of Excess GST

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