Govt gave ₹10,779cr refund to taxpayers

nNEW DELHI: The government has released ~10,779 crore dues to about 8.33 lakh taxpayers after it decided to expeditiously issue tax refunds to cash-strapped individuals and businessmen because of the nation-wide lockdown due to Covid-19 pandemic, finance ministry said on Friday.

While the Central Board of Direct Taxes (CBDT) has released income-tax (I-T) refunds worth ~5,204 crore to nearly 8.2 lakh taxpayers since April 8, the Central Board of Indirect Tax and Customs (CBIC) has processed 12,923 Goods and Services Tax (GST) refund applications involving claims worth ~ 5,575 crore, it said in two separate statements.

CBIC, on March 31, took the measure to help GST returns filers to facilitate early input tax credits as per the 39th GST Council’s decision on March 14.

However, the GST law doesn’t allow refund of credit availed on services and capital goods in certain categories, it said.

“CBIC is fully committed to help the GST taxpayers in the present Covid-19 situation. Since March 30, 2020, CBIC has processed 12,923 refund applications involving claims worth ~5,575 crore,” it said.

In a separate statement, the CBDT said the initiative is as per April 8 decision of the government.

The I-T department has, till date, issued nearly 14 lakh refunds up to ~5 lakh each in order to help taxpayers in Covid-19 pandemic situation. “Keeping its focus on providing relief to the small businesses in micro, small and medium enterprises (MSME), the CBDT will further issue refunds of ~7,760 crore at the earliest,” it said.

Since April 8, the I-T department has issued nearly 14 lakh refunds up to ~5 lakh each.

The CBDT said that in around 1.74 lakh cases, responses are awaited from taxpayers regarding reconciliation with their outstanding tax demand for which a reminder email has been sent, asking them to respond within seven days so that the refund can be processed at the earliest.

The finance ministry had said on April 8 that it will fast-track issuance of pending income tax refunds up to ~5 lakh, which will benefit around 14 lakh taxpayers, to provide relief to individuals and businesses hit by the pandemic.