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10
October 2018
 |
GST (The
Total Investment & Insurance Solutions)
Despite three fortnights organised by the
government to clear the goods and services tax (GST) refunds of exporters,
input tax credit (ITC NSE 0.60 % ) refund worth Rs 15,000 crore and atleast Rs
8,000 crore of integrated GST refunds are stuck with the government, Federation
of Indian Export Organisations (FIEO) said on Wednesday. GST refund is blunting
the competitive edge of exports, it said. “Refund of IGST worth Rs 8,000 crore
and ITC worth Rs 15,000 crore are yet to be paid to exporters and it is causing
a liquidity problem,”said Ganesh Kumar Gupta, FIEO president and urged the
government to organise another GST refund clearance fortnight. GST refund
claims of Rs 54,378 crore of exporters have been cleared by the centre and
state tax officials till July end. As of July 31, 2018, the total amount of
IGST refund claims disposed was Rs 29,829 crore, taking the disposal rate to
93%.
He explained that though the refund process
has improved in the last six months, the actual refund can only be claimed
after manufacturing of goods and exports with a lead time of about 3-9 months
depending on the production cycle. At present, ITC refund is partly electronic
and partly manual. The exporter files refund application at the portal, takes a
print out along with acknowledgement and carries it to GST authorities in hard
copy along with required documents which too varies from authorities to
authorities. The physical interface adds to the transaction time and cost and
best be avoided. FIEO said the GST network may be asked to develop a complete
electronic data interchange for processing the ITC refund as has been done for
IGST refund to avoid human intervention in the process.
Another immediate concern of the export
sector is with regard to flow of credit from the banking sector as getting
renewal of limits is taking abnormal time with huge documentation requirement,
according to Gupta. India’s exports grew 9.7% to $302.84 billion in 2017-18 and
in the April-August 2017-18 period, exports rose 16%. Gupta said the growth
could be above 20% if refunds are made timely.The Total Investment & Insurance Solutions
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