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GST regime more primitive than VAT: Amit Mitra

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

Press Trust of India  |  Kolkata 

Complications in GST anti-profiteering rules

The hurried launch of without proper infrastructure in place has made the indirect system more "primitive" than the regime, Minister said. The Centre, he said, is using ledger for manual record of refunds due to lack of interface between the network and customs electronic date interchange (EDI) as well as the of Foreign Trade (DGFT). This was one reason why he had asked the Centre to push back the date of launch, the minister said. Even in the system, there was no manual intervention in the entire process of filing of returns, Mitra said while addressing an award ceremony organised by Federation of here last evening. Citing a parliamentary committee report, the minister said owing to the system, exporters were unable to get refunds and at least 10-15 per cent of their working capital was locked. The committee noted that a sharp liquidity crunch has gripped majority of exporters due to blocking of funds, Mitra said. "The delay in disbursing refunds 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," Mitra pointed. "There are job losses due to less business in gems and jewellery sector, I am also deeply concerned about SME and unorganised sectors which are cash-based," Mitra said. Despite GST-related hurdles, Mitra was optimistic about the overall growth of exports from In 2016-17, export from the state was worth Rs 53,649 crore and it is expected to touch Rs 75,000-80,000 crore in 2019-20, Mitra said. Some 10 items account for almost two-thirds of the total exports from the state with jewellery, fishery and leather among the majors.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Sat, December 23 2017. 00:56 IST
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