 "Exporters have said that over time the IGST refund system had become seamless, whereas input tax credit refunds took longer.")
The commerce department has conveyed to the finance ministry exporters’ concern related to the Budget proposal of disallowing integrated goods and services tax (IGST) for exports and recommended a re-look at the proposal before the Finance Act is finalised.
Exporters have said that over time the IGST refund system had become seamless, whereas input tax credit refunds took longer.
Besides, while capital goods input taxes can be adjusted under IGST, it is not permitted under the input tax credit system, which will be a challenge for exporters.
The move to disallow IGST for exporters is aimed to plug large-scale frauds in the GST
