Exporters in a spot as GST refunds delayed

High volume sectors seek change in norms, as four months of taxation has led to liquidity crisis for SMEs

Exporters have said their failure to receive goods and services tax (GST) refunds is dragging down the sector.

“After paying the GST four months in a row and without receiving any refunds, small and medium enterprises are at a breaking point. There is an immediate need for remedial measures to prevent a further decline in exports,” said Ganesh Kumar Gupta, president of the Federation of Indian Export Organisations.

In the GST regime, exporters have to pay taxes on realised profits upfront and then apply for refunds.

Exports grew for 13 straight months, peaking at over 25 per cent growth in September, but then