GST: Big relief to traders, now refund of input service will be given

The GST department has given relief to other industrialists including textile industrialists. Industrialists were not yet given refund of input service by the GST Department. However, according to the new circular issued by the Central Tax, industrialists will be given refund. This reform will give a big relief to the textile industry. Because in five years till now their crores of rupees are stuck due to lack of refund.

Let us tell you that till now the department has not refunded the input service tax paid on the service taken by the industrialists to prepare their goods. For example, if a garment trader buys it from weavers and processes it in a dyeing-mill or does embroidery work, he will not get a refund of the tax paid. Similarly, crores of rupees of service inputs of Surat industrialists got stuck due to non-refund of tax paid for shop rent, CA fee or any other service. However, the formula has been changed to 89(5) in 142022 notification issued by the Central Government on 5th July. According to which industrialists will get refund from now on. Entrepreneurs believe that this decision will give a big relief to all industries. The textile industrialists of Surat will benefit greatly.

According to the notification issued by the Central Board for refund of input service on July 5, the input service will be refunded in the GST paid by the industrialists for the service related to the trade industry. The industrialists who have not got the refund till now, went to the Supreme Court. After this the department has amended it. This reform will give a big relief to the textile industrialists of Surat. This update is very welcome for entrepreneurs.