Exporters may seek exemption on tax payment
Exporters plan to seek outright exemption on payment of goods and services tax, citing a crunch in working capital due to the uncertainty in the time taken to get refunds for unutilised input tax credit.
Exporters, heads of export promotion councils and senior officials from the commerce ministry plan to submit a petition seeking the exemption when they meet the revenue secretary on Tuesday. “There is an apprehension that exports will decline, going ahead,” said an an official aware of the meeting.
Exporters are likely to raise the issues of working capital and refunds which will be ploughed back into their business and the loss of interest.
“Merchant exporters and those in the small and medium enterprises are up in arms,” the official said. Micro, small and medium enterprises now have to pay GST when buying from merchant exporters. The government has a two refund mechanisms for exporters.
They can furnish a bond instead of paying integrated GST and claim refund of the unutilised input tax credit. This entitles them to get a 90% refund within seven days of acknowledgement of the application and the rest in 60 days. Alternatively, they can pay IGST and then claim the refund, which they get within 60 days.
Another official said certain traditional sectors like textiles and gems and jewellery are suffering and need special attention.A scheme offering higher duty drawbacks will end on September 30 and many exporters don’t have the finances to pay for exports.
The Economic Times ,New Delhi,19th september 2017
Exporters, heads of export promotion councils and senior officials from the commerce ministry plan to submit a petition seeking the exemption when they meet the revenue secretary on Tuesday. “There is an apprehension that exports will decline, going ahead,” said an an official aware of the meeting.
Exporters are likely to raise the issues of working capital and refunds which will be ploughed back into their business and the loss of interest.
“Merchant exporters and those in the small and medium enterprises are up in arms,” the official said. Micro, small and medium enterprises now have to pay GST when buying from merchant exporters. The government has a two refund mechanisms for exporters.
They can furnish a bond instead of paying integrated GST and claim refund of the unutilised input tax credit. This entitles them to get a 90% refund within seven days of acknowledgement of the application and the rest in 60 days. Alternatively, they can pay IGST and then claim the refund, which they get within 60 days.
Another official said certain traditional sectors like textiles and gems and jewellery are suffering and need special attention.A scheme offering higher duty drawbacks will end on September 30 and many exporters don’t have the finances to pay for exports.
The Economic Times ,New Delhi,19th september 2017
Comments
Post a Comment