Fearing that a staggering Rs 65,000 crore could get stuck in GST refunds, exporters on Tuesday asked the government to fast-track the refund process and avoid further deterioration in their ‘liquidity situation’.
The Committee on Exports, chaired by Revenue Secretary Hasmukh Adhia, today met 8 export promotion associations to understand their concerns post the implementation Goods and Services Tax (GST) from July 1. “If refund does not start flowing immediately then about Rs 65,000 crore would be stuck by the end of October. This will further deteriorate exporters' liquidity situation,” FIEO Director General Ajay Sahai told reporters after the meeting.
He hoped that Government would take a decision soon so that exporters get a level playing field vis-a-vis other sectors. During the meeting the exporters pressed for starting the refund process immediately based on GSTR-1 and GSTR-3B data. While GSTR-3B is the initial simplified returns which businesses have to file, GSTR-1 is the final sales return to be filed every month.
Engineering Export Promotion Council board member PK Shah said with the ensuing festive season it is important that the authoritiesrelease at least 90 per cent refunds soon after the shipments and complete verification and adjustment process at a later stage. Council for leather Exports Vice Chairman P Ahmed said that exporters are faced with challenging times due to GST and need immediate refund of taxes. The Gems and Jewellery Industry demanded exemption from Integrated GST on procurement of precious metals from the nominated agencies for the purpose of manufacture and export of jewellery.