CAG asks Finance Ministry to put in place online Customs refund system

The Comptroller and Auditor General (CAG) has urged the Finance Ministry to consider establishing an online system, similar to the GSTN system, for streamlining the customs refund process to enhance its efficiency. Additionally, the official auditor has raised concerns about significant delays in implementing the exchange rate update module on a daily basis. The CAG has requested that this system be made operational without delay.

Refunds can be sought under the Customs Act in various scenarios, such as when imported goods are found to be defective or not meeting agreed specifications, when export duty/cess has been paid on exported goods that are subsequently returned, or when duty has been paid upon assessing imported goods and the person seeks a refund.

The CAG suggested, “The Ministry should contemplate the adoption of an online workflow for capturing and processing refunds, modeled on the lines of the GSTN System. This approach would allow the Department to electronically monitor Bill of Entries (BEs) against which refund claims have been lodged. Such a system would significantly enhance the efficiency, effectiveness, and transparency of refund case management.”

Also Read: Govt likely to issue Ordinance to impose GST of 28 per cent on online gaming

The CAG also noted that in February 2014, the Central Board of Indirect Taxes and Customs (CBIC) announced the completion of testing for an exchange rate update module through communication with the State Bank of India (SBI). However, the actual launch was deferred pending resolution of technical issues with SBI. Subsequently, the module underwent redesigning, and final preparations for its implementation are being undertaken by SBI.

CBIC typically establishes the conversion rate for major foreign currencies used in transactions approximately every 14 days and issues related notifications. If import/export transactions involve currencies not covered by these notifications, importers/exporters are required to provide an exchange rate certificate from SBI at the time of submitting bills of entry or shipping documents.

The CAG emphasized the importance of implementing a system that captures daily exchange rate fluctuations, which would mitigate unjustified gains or losses for importers, exporters, and the Department alike. The CAG concluded, “The system for daily exchange rate updates should be activated at the earliest opportunity.

Are you Looking for GST Refund Service? Mygstrefund.com offers GST refunds on business, exports, and many more if your GST application is rejected. Get in touch with us today.

Pharmaceutical Exports from India

India is a big deal in the world of medicine and vaccines. It makes a lot of generic medicines and vaccines that are used everywhere. India is even called the "Pharmacy of the World" because its medicines are good quality and not too expensive. Despite some problems, like supply chain issues, India's medicine exports are doing well. The USA, Belgium, and South Africa are some of the top places buying Indian medicines. The government helps by running programs to make the medicine industry stronger. Groups like Pharmexcil and the Department of Pharmaceuticals also lend a hand. Their job is to make sure everyone can get good medicines without paying too much.

GST VS OLD TAX STRUCTURE

Goods and Service Tax, commonly known as GST, is a consumption tax applied to the supply of goods and services. It replaces multiple indirect taxes, simplifying the tax system. Previously, India had a complex tax system with different types of taxes, causing inconvenience to individuals. This paper compares the current GST framework with the old tax system and discusses its impact on the Indian economy. The idea of GST was first proposed by the Vajpayee government in 2000 and was implemented in India on July 1, 2017, after passing through various stages of discussion and approval.

Incorporation of a Company In India

The process of forming a company involves incorporation, where it gains legal distinction from its owners. Initial steps, including promotion and incorporation, are crucial, with promoters conceptualising the business and registering it under specific laws. Following this, the company attracts investors, raises capital, and commences operations. Promoting a company involves critical decisions on its concept, structure, and capitalisation. Incorporation entails name approval, application filing, and obtaining a Certificate of Incorporation. Subsequently, capital subscription and commencement of business follow, ensuring compliance with legal requirements. Public companies undergo additional steps before initiating operations. Overall, incorporation offers benefits like limited liability, perpetual existence, and legal capacity. Compliance with regulations is essential, ensuring the company's lawful establishment and paving the way for its growth and success.