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PMO calls FinMin, Commerce officials on exporters' GST refunds

Press Trust of India  |  New Delhi 

The has called a meeting of top officials of commerce and to discuss the issue of GST refunds as exporters claimed that their 70 per cent of refunds are still stuck even after eight months of roll out of the new tax regime. The meeting would also assess the impact of delay in refund process on exports and manufacturing, sources said. The issue of refunds to exporters has been hanging fire for over five months now, with exporters complaining that delay in GST refunds has blocked their working capital. The revenue department, on the other hand, has argued that there are discrepancies in forms submitted by exporters with the customs department and those with the GST Network (GSTN). The (CBEC) has sanctioned Rs 4,000 crore worth refunds to exporters in four months since October.

Still, claims of about Rs 10,000 crore are stuck due to discrepancies in the information furnished by exporters to GST Network (GSTN) through forms like GSTR 1 or Table 6A or GSTR 3B, and the shipping bills filed with the Customs. According to sources, the meeting would be attended by Hasmukh Adhia, Rita Teaotia, CBEC and top officials from the of Foreign Trade (DGFT). The DGFT, under the Commerce Ministry, is slated to make a presentation before the to the on the pending refunds to exporters. The in October last year had said that an mechanism for refunds to exporters would be developed and had entrusted the DGFT to prepare required norms for the implementation from April, 2018. Under the mechanism, a notional credit would be transferred to the exporters account based on their past record and the credit can be used to pay taxes on input. The in its meeting on Saturday decided to defer implementation of the scheme for refunds to exporters till October 1. To ease exporter woes, the Council had also allowed exporters to continue to claim tax exemptions for an extra 6 months till October 1, 2018. Accordingly, merchant exporters can pay a tax at the rate of 0.1 per cent on goods procured for export purposes and obtain a refund for the same. Also, domestic procurement made under Advance Authorisation, EPCG and EOU schemes are being recognised as 'deemed exports' with flexibility for either the suppliers or the exporters being able to claim a refund of GST/IGST paid thereon. Exports during April-January 2017-18 grew by 11.75 per cent to USD 247.89 billion as against USD 221.82 billion in the year-ago period.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sun, March 11 2018. 18:15 IST