EXPORTERS SEEK EARLY REFUNDS UNDER GST REGIME

NEW DELHI: Exporters and other traders have sought early payment of refunds under of the Goods and services Tax (GST) system.

With refunds under the new tax structure yet to be paid, the export sector is left with little money. According to the exporters group, Federation of Indian Exports Organisation (FIEO), ₹65,000 crore is stuck in GST refunds, and the reform process needs to be fast-tracked to avoid further deterioration in the “liquidity situation” of exporters.

Under the new tax system, businesses have to first pay GST and then claim refunds.

The committee on exports under revenue secretary Hasmukh Adhia met on Tuesday to discuss the issue. The committee was set up to look into the problems faced by exporters following GST roll-out.

Exporters said the refund process must be undertaken based on returns filed and data available under forms GSTR-1 and GSTR-3B.

Under the new tax structure, businesses need to file initial returns under form GSTR-3B, while GSTR-1 reflects the summary of all outward supplies.

“We have presented our case and sought relaxation... the committee was very co-operative and we are hoping that the problem will be addressed,” Ajay Sahai, director-general, FIEO, told HT.

According to sources in the commerce ministry, the cash crunch could even lead to delay in regular salary payments to employees in some cases.

The Confederation of Indian Industry (CII), has suggested that the government should consider special initiatives for promoting exports, including re-examining certain provisions under the GST regime.

Meanwhile, the GST Council chaired by finance minister Arun Jaitley, will meet again on October 6, instead of the earlier stipulated October 24, to discuss challenges that have come up post GST roll-out.