Faster income tax, GST refunds will help ease working capital strain: Partha DeSarkar, Global CEO, Hinduja Global Solutions
Initiatives to support ease of doing business and actions for faster Income Tax and GST refunds would be appreciated, Partha DeSarkar said.
January 27, 2021 / 07:30 PM IST
Representative image (PC- MoneyControl.Com)
For the upcoming Budget 2021, Partha DeSarkar, Global CEO, Hinduja Global Solutions says:
Considering the impact caused by the COVID-19 pandemic, businesses and individuals alike have great expectations for a growth-oriented Union Budget, focusing on economic recovery and stability. We are cognizant of the fact that the pandemic has reduced the inflow of the Government as well and any tax concessions might further shrink the budgeted revenues.
Initiatives to support ease of doing business and actions for faster Income Tax and GST refunds would be appreciated. A simple procedural ask is to allow the GST payments made for import of services under reverse charge method to be offset against other GST paying units within the same entity. The legal inability to transfer GST paid from one registration to another can be resolved by routing through Input Service Distributor (ISD) registration and distribution of the same.
The grant of refund for GST paid by businesses under reverse charge method for SEZ / Export oriented units in particular, can be reduced substantially if this mechanism is allowed. Doing so will provide businesses with more working capital while not affecting the Government’s revenue collection, and reduce the stagnation of refunds filed with GST offices in the last three and half years.