New Delhi. The exporters GST refund Pending 80% so the exporters of the country have been stuck for the past seven months. Funds problem to small exporters is so high that they are not taking new orders because they do not have the cash to complete the order.
In the GST system, the first exporters pay taxes and then claim refunds. The problem of working capital has increased due to not getting a refund last 7 months.
Not taking new orders
Ajay Sahai of Fio told that after the GST came, the problem of cash flow has increased, due to which exporters have to cancel new orders. According to Fio, MSME has had to reduce its workforce due to the funding problem. There are many such investors who have refused new orders due to lack of funds. Before GST, exporters got discounts in duty but after getting GST they have to pay the tax first. After that, the refund of the tax paid is to be claimed. According to this process, about 1.85 lakh crore rupees are held by the government according to Fio.
Refunds have been stuck for 7 months
Sahay said that 80% refund payments are still pending for the feedback received from the exporters and tax authorities are not even taking the input tax credit applications. He told that the exporters are upset about their refund. There are many exporters who have not received refunds for the past seven months. The government had asked to bring e-wallet but that too will come only after April 1st. The scheme has not yet been notified by the government.
Exports are upset
Rajkumar Malhotra, chairman of Asian Handicraft Private Limited, said that so far the exporters ‘refunds have not started to meet, due to which the exporters’ money is blocked by the government. Workers were having difficulty in working capital. Due to the lack of exporters’ capitals, they are worried to complete their orders on time due to which they are not taking new orders.
Rectify the Government Portal
Om Prakash Prahlad, Chairman of Export Promotion Council for Handicrafts (EPCH) said that the industry has not yet started getting the refund. Handicraft Exporter Rajkumar Malhotra said that the government has also acknowledged that there is a problem in the GST portal, then the government should first eliminate this problem as the Customs officials are also agreeing that there is no problem in custom bills but on GST portal Showing miss-match with IGST.
Several claims have been made by the government regarding the refund
The government had earlier said that according to the IGST refund shipping bill from July to October, Rs. 6,500 crores and the amount of input tax credit amounting to about Rs. 30 crores has been stuck. Exchangers were scheduled to receive a refund of August by October 10 and October 18 in the GST Council meeting on October 6, 2017. Which has not yet started to meet?
Government gives relief package to export
The government had given the package to boost export. The Government announced to increase the export incentive for Labor Interessive Sector, simplify Documentation Procedures and to give additional financial assistance of Rs 8,500 crore annually. The government has increased the time limit of duty credit scrip to 24 months. Merchandise Export from India Scheme (MEIS) has increased the incentive by 2 percent.