Skip to main content

Errors in GST returns filing a hurdle in issuing tax refunds to exporters: CBEC

By
Errors in GST returns filing a hurdle in issuing tax refunds to exporters: CBEC
Errors in GST returns, pertaining to either the summary of transactions, purchases, sales or a comprehensive filing of transactions are causing delays in processing claims, says CBEC chief Vanaja SarnaErrors in GST returns filing are coming in the way of disbursing tax refunds to exporters covered by the goods and services tax regime, according to Central Board of Excise and Customs (CBEC) chairperson Vanaja Sarna.
In an interview, Sarna said a third of the total dues to exporters have already been disbursed as the documents are clear.Claims worth more than Rs4,000 crore for dues under integrated GST (IGST) have been processed, she said. Total IGST refunds due to exporters since July, the first month of the tax, stand at about Rs13,000 crore.
GST Network, the company that processes tax returns under the new indirect tax regime, is unable to process the remaining claims on account of errors and mismatches in the returns filed.“Our officers are working 24x7 to make sure that taxpayers rectify the errors in their returns so that we can disburse the refunds,” Sarna said, adding that multiple outreach programmes have been held to get these errors corrected.
She added that errors in GST returns pertaining to either the summary of transactions, purchases, sales or a comprehensive filing of transactions are causing delays in processing the claims.While large businesses carry out these filings every month, businesses up to Rs1.5 crore in sales are allowed to file on a quarterly basis.
Taxes that go into export production are refunded to ensure that exports remain competitive in international markets. The GST Council, the federal indirect tax body chaired by finance minister Arun Jaitley, has been making efforts to minimize delays so that exporters do not face any liquidity crunch. The council is working on evolving an e-wallet facility to solve the issue of refunds.
Ajay Sahai, director general and chief executive officer of the Federation of Indian Export Organisations, said that procedures need to be simplified to ensure that exporters, who have already paid taxes are issued refunds expeditiously. “In the absence of quick refunds, small and medium enterprises may be forced to forgo export orders, preventing them from participating in global economic growth,” Sahai said.
The Mint, New Delhi, 24th February 2018

Comments

Post a Comment

Popular posts from this blog

Govt’s gamble on GST cuts: What do the bond and currency markets signal?

By
  It’s not just humans who suffer from cognitive biases; markets do too. Interestingly, different financial markets exhibit distinct biases, each interpreting events through its own prism of prejudice. Take the recent announcements on GST reforms: equity markets have chosen to view them through the lens of growth, while bond and currency markets are focusing on potential macroeconomic risks—fiscal pressures and current account challenges. So, which lens captures the true pulse?Equity markets may be right in expecting GST reforms to revive consumption, which has remained lacklustre for a while. But the key question remains—will this revival come at the cost of broader macro stability?It is well known that consumption stocks have rallied since the GST rationalisation announcement. But what about bond markets? What signals are they sending since this rejig was announced from the ramparts of the Red Fort?The signs aren't encouraging. Bond prices have slumped and yields have surged sinc...
Post a Comment
Read more

Luxury carmakers urge clarity on GST rates to boost festive season sales

By
  A clear picture regarding new GST rates at the earliest will help the overall auto industry, including the luxury car segment, to regain momentum in the ongoing quarter, which generally sees enhanced sales on account of the festive season.The high-powered GST Council, chaired by Finance Minister Nirmala Sitharaman, will meet on September 3-4 to discuss moving to a two-slab taxation.In an interaction with PTI, BMW Group India President and CEO Hardeep Singh Brar said the recent speculation about the change in GST rates has caused uncertainty in the minds of consumers.Consumer interest and demand is strong, but they (prospective buyers) have adopted a wait-and-watch approach, and this delayed decision-making is impacting new vehicle sales at a certain level, he noted."Expediting clarity on GST rates is essential to get back to speed and ensure the auto sector's contribution to economic growth during this quarter is robust," Brar stated.He also hoped that the sustainable p...
Post a Comment
Read more

Sebi proposes tighter norms for green bond third-party reviewers

By
  Sebi on Friday said it has proposed to tighten the norms to appoint independent third-party reviewers or certifiers for green debt securities to align them with requirements for other ESG-linked bonds.In a draft circular, Sebi said that the current norms for green bonds, introduced in February 2023, lack detailed requirements around reviewer independence, conflict of interest mitigation, and disclosure standards that are now in place for other ESG-linked securities under a June 2025 circular.The regulator's latest proposal seeks public comments on a revised framework that would bring parity by incorporating comprehensive criteria for third-party certifiers of green bonds on non-convertible securities.Under the proposed norms, issuers of green debt securities will need to appoint reviewers who are independent of their management, directors, and key managerial personnel. These reviewers will be remunerated in a way that prevents any conflicts of interest and possess relevant expert...
Post a Comment
Read more