GST Refund Process for Individuals in India: Challenges, Efficiency, and Policy Implications
Year: 2025
Type: article
Abstract: The Goods and Services Tax (GST) refund process in India plays a crucial role in ensuring liquidity for individuals, particularly exporters and those claiming input tax credits. While the framework aims to enhance transparency and ease of compliance, inefficiencies persist, leading to delays and financial burdens for taxpayers. This study critically examines the challenges faced by individuals in claiming GST refunds, emphasizing procedural bottlenecks, documentation requirements, and administrative inefficiencies. A review of existing literature from Scopus, Web of Science, ABDC, and UGC-listed journals highlights key issues, including refund delays, lack of digital integration, and inconsistent implementation across states. The research identifies gaps in the current system, such as the absence of a streamlined mechanism for individuals compared to businesses and the need for enhanced policy measures to address fraudulent claims without overburdening genuine taxpayers. A comparative analysis with global best practices in tax refund mechanisms suggests that automation, artificial intelligence-based risk assessment, and a unified refund processing system could enhance efficiency. The study proposes a policy framework to improve the GST refund process, focusing on process simplification, regulatory clarity, and technology-driven solutions. Addressing these challenges is essential for strengthening taxpayer trust, enhancing compliance, and aligning with India's broader goal of tax reform.
Authors: Noor Tashfeen, Meenu Sharma, Keshav Kumar, Rohit Hegde, Amisha Sahoo, Dr Tejaswini
Institution: Jain University
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4409997658