PMO meet today to discuss GST refund for exporters
New Delhi: The Prime Minister’s Office has finally decided to intervene between the Ministry of Commerce and the Ministry of Finance and after the failure of both the ministries to fail to reach an agreement on the GST refund for exporters of 100 crores, top-level meeting on Today
“There is disagreement between the Finance Ministry and Commerce Ministry over GST refunds. Although the Department of Revenue realized that there were discrepancies in the forms filed by exporters, the Commerce Ministry wanted refunds to be cleared. those exporters should flag this issue, the PMO tried to intervene,” a senior Finance Ministry official said.The issue of refunds to exporters has been hanging fire for over five months now. Exporters claim that more than 70% of their GST refunds are stuck with the government.
Since the launch of GST, the Central Board of Excise and Customs (CBEC) has given the refund of 40 billion rupees to exporters in the four months since October.
They flagged their concerns to both ministries and on several forums. Exporters say it has blocked its capital and will affect commerce.
The meeting was attended by Finance Secretary Hasmukh Adhia, Commerce Secretary Rita Teotia, CBEC Chairperson Vanaja Sarna and top officials from the Directorate General of Foreign Trade (DGFT).
Under the Ministry of Commerce, the DGFT is slated to make a presentation before the Principal Secretary to the PM on the pending refunds to exporters.
The GST Council in its latest meeting deferred the e-wallet mechanism for refunds to exporters for the next meet and Vanaja Sarna said the government would set up camps from March 15 to process refunds.