Red Tape Grinds GST to a Halt

This refers to your cover story ( The Good, Bad and Ugly, July 30). Our company – Blue Star International – is a government-recognised Star Export house, with turnover of `40 crore and 100 per cent realisation of export proceeds till date. Our GST jurisdictional office is in Bhikaji Cama Place, New Delhi. We welcomed the 7th July CBEC notification distinguishing or clarifying who could give bond and who could give letter of undertaking (LUT) for exporting without payment of IGST.

Our team went to the GST jurisdictional office on 10th July to seek what documents are required for LUT acceptance and claiming composite rate drawback. We moved our file for LUT acceptance the same day to claim composite rate drawback with all required documents. The superintendent confirmed our file was complete and the certificates would be issued by 5 pm, the same day. Despite waiting till 7.30 pm, they did not issue the certificate. They issued the letter of acceptance for LUT on 14th July, but refused to issue letter for claiming composite rate drawback.

We sought a meeting with the GST Commissioner, who told us to meet the Addl. Commissioner for Composite Rate Drawback. He told us their office had stopped issuing such letters since custom commissioner at ICD, Tughlakabad, was not accepting it. We confronted him with Circular no 22/2017 – Customs dated June 30, 2017, and newspaper advertisements stating all jurisdictional GST officers to issue such letter for claiming composite rate drawback and to ensure smooth flow of exports till 30th September.

He informed that there was no way to ensure that some rogue exporter will not avail of the double benefit of composite rate drawback & GST input tax credit refund fraudulently. We showed him copies of NOC for claiming composite rate drawback issued by range commissioners of other jurisdiction, where exporters were able to take advantage of this. He stated that whoever was issuing such a NOC was doing so at the risk of their job. We are sure many exporters face similar issues and request concerned bodies to take up this matter urgently and resolve it. A. Saluja, Director, Blue Star International