Govt plans GST Incometax refunds for large companies to ensure liquidity

The government may soon provide refunds on income tax and goods and services tax (GST) to large companies, The Economic Times reported.

The move is intended to ensure that large companies have adequate liquidity during the nationwide lockdown to contain the spread of COVID-19.

The refunds will be higher than the Rs 18,000 crore given to small taxpayers, the report said.

"Large cases (of refunds) will be dealt with after a week or 10 days, by which we will have issued refunds to small taxpayers," an official told The Economic Times.

Though about 93 percent of all refund cases involved small taxpayers, where the amount is small, in the case of large companies it will be higher, the official said.

The official added that the government is trying to process the refunds soon.

On April 8, the finance ministry said it will immediately release pending income tax refunds of up to Rs 5 lakh. The total amount on such refunds was estimated at roughly Rs 18,000 crore, benefitting 14 lakh taxpayers.

On April 15, the Central Board of Direct Taxes (CBDT) said over 10.2 lakh refunds worth Rs 4,250 crore had been issued within the week.