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Manual processing of GST makes it more primitive then VAT: Amit Mitra

Despite GST-related hurdles, Mitra was optimist about the overall growth of exports from West Benga

Press Trust of India  |  Kolkata 

Amit Mitra, West Bengal
(From left) Amit Mitra, finance minister (Photo: Subrata Majumder)

has said with the hurried launch of the without putting in place, the system has become more "primitive" than the VAT regime with "manual" processing of Due to lack of interface in place between the Goods and Services network with the customs electronic date interchange (EDI) and the of Foreign Trade (DGFT), the Centre is using ledger for manual records for refunds, said. Pointing out that that this was one reason why he had asked the Centre to push back the date of introduction of the new regime, he hoped that the problem is temporary. Even in the state VAT system, there was no manual intervention in the entire process of filing of returns, said while addressing the Federation of organised award ceremony here last evening. The said owing to the new system, exporters were unable to get their refunds and at least 10-15 per cent of their working capital was remaining locked. According to the report 'Impact of on Exports' by the headed by Naresh Gujral, the refund of Integrated Goods and Services (IGST) paid on export goods and refund of Input Credit (ITC) on goods exported under Letter of Undertaking (LUT)/ Bond in July, August, and September, 2017 was still pending, the said. The Committee notes that a sharp liquidity crunch has gripped the majority of exporters due to the blocking of funds, said. "The delay in disbursing refund means your capital is blocked.

The Committees report said the (quantum of) blocked capital (stuck up with the government for refunds) could be between 15-20 per cent of the working capital. Declining of the working capital would lead to losing of jobs by the workers," pointed. "There are job losses due to lower business in gems and jewellery sector, I am also deeply concerned for the SME and the unorganised sectors which is cash based," said. Despite GST-related hurdles, was optimist about the overall growth of exports from In 2016-17, exports from the state were worth Rs 53,649 crore and it was expected to touch Rs 75,000-80,000 crore in 2019-20, said. Some 10 items account for almost two-thirds of the total exports with jewellery, fishery and leather among the major items of export from Bengal.

First Published: Fri, December 22 2017. 12:45 IST