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E-wallet will address GST refund issue of exporters: Suresh Prabhu

As per exporters, about Rs 200 billion is stuck on account of delay in refund of duty claims under the new indirect tax regime

Press Trust of India  |  New Delhi 

GST, taxes

Introduction of e-mechanism will effectively address the woes of exporters who have been complaining of delays in refund of taxes under the regime, Prabhu has said.

Under the e-mechanism, a notional credit would be transferred to exporters' accounts based on their past record and the credit can be used to pay taxes on inputs.

Prabhu said that secretaries in the commerce and are working on the matter.

"The only way it can be addressed properly is through e-(mechanism). has to take a call on this. will actually address the issue because then you (exporters) do not have to pay and seek refunds," he told

According to exporters, delay in refund of taxes is blocking their working capital and impacting shipments. The issue of refunds to exporters has been delayed for over eight months now.

The revenue department, on the other hand, has argued that there are discrepancies in the forms submitted by exporters with the customs department and those with the Network (GSTN).

As per exporters, about Rs 200 billion is stuck on account of delay in refund of duty claims under the new indirect tax regime.

Before GST, exporters used to get ab-initio exemptions from duties. But now they have to pay first and then seek refund.

The Prime Minister's Office had earlier called a meeting of top officials of commerce and to discuss the issue of refunds.

The in its meeting earlier this month decided to implement scheme for refunds to exporters by October 1.

Meanwhile, the CBEC field formations have launched 'GST refund fortnight' beginning yesterday to quickly sanction pending refunds to exporters.

(FIEO) had stated that could help resolve the problem of liquidity. Exporters may use it like a running account where will be debited from e-wallet when duty paid supplies have to be undertaken and the amount is credited when the proof of exports is made available.

First Published: Sun, March 18 2018. 15:27 IST
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