Economy

Exporters urge government panel to speed up GST refunds

Exporters urge government panel to speed up GST refunds”

Also, some relief to exporters could be on cards as Revenue Secretary Hasmukh Adhia headed panel met 8 export promotion associations today to understand their concerns. "If refund does not start flowing immediately then about "65,000 crore would be stuck by the end of October".

Exporters have been complaining that about Rs 1.8 lakh crore of working capital has been locked up in refunds due from the tax department ever since introduction of GST from July 1. "This will further deteriorate exporters' liquidity situation", said FIEO Director General Ajay Sahai.

GSTR 3B is a simple return form introduced by the CBEC for the month of July and August, following the roll out of the Goods and Services Tax from July 1. The apex export promotion council suggested a quick refund mechanism based on GSTR-1 and GSTR-3B forms.

EEPC said the authorities should release at least 90 per cent of refunds immediately after the shipments and allow the verification and adjustment be done at a later stage. Additionally, the gems and jewellery industry demanded exemption from integrated GST (IGST) on procurement of precious metals from the nominated agencies for the objective of manufacture and export of jewellery. In its 21st meeting in Hyderabad earlier this month, the GST Council had made a decision to form a committee on exports to review issues faced by the exporters in getting tax content in exports neutralised and suggest remedies to the Council.

Among the solutions that are being debated arecreation of an e-wallet for exporters from which money automatically flows for procurement of goods without having to worry about the GST refund.

Members of seven export promotion councils, Federation of Indian Export Organisations and officials from the commerce ministry discussed the issues ailing exports with Adhia, chief economic advisor Arvind Subramanian and GST commissioners of various states.

"MSME units do not have capacity to pay further GST and thus they are refusing further orders".

In the pre-GST era, exporters would get ab-initio exemptions from duties, as per various schemes under the foreign trade policy.



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