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FIEO's claims inaccurate, Rs 711-bn GST refunds cleared till date: FinMin

FIEO had earlier this week said Rs 220 billion GST refunds are pending with the government, which is creating liquidity problems for exporters

Press Trust of India  |  New Delhi 

Illustration by Ajay Mohanty

The government Friday said Rs 711.69 billion worth have been disposed of till date and refuted FIEO's claim that Rs 220 billion is stuck, saying the figure is exaggerated and inaccurate.

The Finance Ministry, in a statement, said refund claims are being cleared expeditiously and asked export bodies to refrain from putting out "unsubstantiated" claims as they cause "needless alarm" amongst the exporters.

The (FIEO) had earlier this week said Rs 220 billion are pending with the government, which is creating liquidity problems for exporters.

said refunds of about Rs 70 billion are pending on account of Integrated GST (IGST) and about Rs 150 billion due to input tax credit (ITC) as of September 30.

The termed these figures as "exaggerated and thus inaccurate". It clarified that refund worth only Rs 30.65 billion is held up due to deficiency in claims filed, and the quantum of pending ITC refund is only Rs 20.77 billion.

"It is a fact that a large number of exporters have been granted refunds so far while a few claims are still pending owing to deficiencies found in the claims," it said.

The ministry said 92.68 per cent (Rs 388.24 billion) of the total refund claims of Rs 418.89 billion have already been disposed.

"The remaining claims amounting to Rs 30.65 billion are held up on account of various deficiencies which have been communicated to exporters for remedial action," it said.

In the case of ITC refund claims with the Centre and states, the pendency as on date is only Rs 20.77 billion, the ministry said.

"Out of the refund claims of Rs 393.72 billion received, provisional/final order has been issued in case of refunds amounting to Rs 323.45 billion. In claims amounting to Rs 49.51 billion, deficiency memos have been issued," it added.

"Thus, actual pendency is far less than is being put out for the knowledge of the public. The overall disposal of is Rs 711.69 billion till date. Refund claims without any deficiency are being cleared expeditiously," the ministry said.

It said that efforts are being made continuously to clear all the dues on account of pending refund claims.

"Co-operation of the exporter community is solicited to ensure that they exercise due diligence while filing GSTR 1 and GSTR 3B returns as well as Shipping Bills," the ministry said and assured the exporting community that all their eligible refund claims will be sanctioned without any delay.

First Published: Fri, October 12 2018. 22:05 IST