Gujarat government should also authorise its officials in State Goods and Services Tax (SGST) commissionerate to revalidate refunds that have been lapsed because of non-payment by officials of Central GST (GST), said a top tax advocate in the city. 

He said that there are a number of cases where State GST authorities have disbursed refunds, but not by CGST depriving businessmen of their rightful refunds. However, a top official in the state government said that there is no authority given to the state tax authorities and it cannot revalidate unless it is approved by GST Council, the apex body for GST in the country.

Under GST regime businessmen get GST refunds in form of Input Tax Credit (ITC). However, the component of SGST is disbursed by state tax authorities, while the CGST component is disbursed by CGST authorities. Tax practitioner Monish Bhalla said that there has been a number of cases where the SGST component has been disbursed but not the CGST component. “After a gap of 90 days, tax authorities are unable to disburse refunds. However, Maharashtra government has come out with a circular that its tax officials can revalidate tax refunds if the deadline of 90 days has passed. If Maharashtra government can do it, why not Gujarat government,” said Bhalla.

Ajay Kumar, special commissioner in SGST Commissionerate in Gujarat said that tax authorities in Gujarat cannot blindly follow other states, as any action need the approval of GST Council. “We had also got similar complaints. We had raised this issue, which has been sent to the Law Committee (of GST Council)” said Ajay Kumar.

Axat Vyas, convenor of National Action Committee of GST Professionals said that thirty-second meeting of GST Council has approved a provision of single window system, wherein officials of SGST can disburse refunds on behalf of the CGST counterpart. However, the system has issues of jurisdiction.