Business Standard

~100 crof GST refunds stuck, say tea exporters from South India


At least~100 crore worth of goods and services tax(GST) refund of tea exporters from South India are stuck, impacting working capital and outbound shipment, say industry representa­tives.

Dipak Shah, chairman, South India Tea Exporters Associatio­n, says the government is continuous­ly extending the date for filing of returns and, as such, no merchant exporter is able to get refund of the taxes paid. “This is a failure of the total system,” he alleged, adding that though the Centre had issued a notificati­on to give relief for exporters, the refund option is still not available on the GST Network, the system's informatio­n technology backbone. He estimates ~100 crore of tax refund dues.

A tea exporter says he and others are now looking to meet their working capital requiremen­t from private financing, as they've exhausted the bank limits. "This happens at an interest burden which is sometimes 24-30 per cent, against the usual seven-eight per cent given by banks. This is purely to honour export commitment­s," he said.

As a result, there is hesitation on concluding future export contracts. Which, in turn, could mean lower demand and a drop in prices.

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