The government has released Rs 10,779 crore dues to about 8.33 lakh taxpayers after the government 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 Rs 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 Rs 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.
In a separate statement the CBDT said the initiative is as per April 8 decision of the government. I-T department has till date issued nearly 14 lakh refunds up to Rs 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), CBDT will further issue refunds of Rs 7,760 crore at the earliest, it said.