Skip to main content

Mismatch in govt GST export refund numbers

By
Mismatch in govt GST export refund numbers
The latest figures from the government on claims filed by exporters for refunds under the goods and services tax (GST) grossly contradicts its earlier statement of facts in this regard.
At the end of November 2017, the finance ministry had said the cumulative total of GST refund claims from shippers from July 1 rollout of the new tax till endOctober was Rs 65 billion.
And, inamidJanuary letter to the Federation of Indian Export Organisations (FIEO), the ministry has stated the total of such refund claims from July 1 till December 31 was Rs 55 billion —of which Rs 19.23 billion had been paid. The communication has been reviewed by Business Standard.
Asked to explain how a cumulative figure could melt in this manner, despite the addition of claims for November and December,asenior Finance Ministry official said, “At this juncture, it cannot be commented on.” Ajay Sahai, director general of FIEO, said: “There is no consistency in the figures being released.” The other issue is, of course, the charge that the governments, Union and states, continue to sit on the bulk of the claims, crippling the working capital needs of the trade.
Industry estimates had earlier placed the tax refunds to be released by the Centre and state governments at Rs 500 billion.State governments have not refunded their component of taxes under the Duty Drawback Scheme, said Sahai.“Exporters are in the dark about their pending claims,” FIEO President Ganesh Kumar Gupta said. “The response given by the Customs authorities is inadequate.
It is essential that a facility to view the status of refund be provided, so that exporters are aware of the stage of refund and deficiency, if any.” The finance ministry official said the delay was because claims were not being filed using the appropriate forms and matching shipping bills. To this, exporters said that problems in filing claims electronic have persisted as the authorities were asking for declarations that were difficult to provide.
REFUND CONUNDRUM
  • Exporters were earlier allowed dutyfree imports to make export products
  • GST forced them to pay duty and later apply forarefund
  • Refund numbers of government and industry widely divergent
  • Exporters claim yet to get cash |Industry estimates say Rs 500 billion worth of refunds stuck
The Business Standard, New Delhi, 21th February 2018

Comments

Post a Comment

Popular posts from this blog

New income tax slab and rates for new tax regime FY 2023-24 (AY 2024-25) announced in Budget 2023

By
  Basic exemption limit has been hiked to Rs.3 lakh from Rs 2.5 currently under the new income tax regime in Budget 2023. Further, the income tax slabs in the new tax regime has been changed. According to the announcement, 5 income tax slabs will be there in FY 2023-24, from 6 income tax slabs currently. A rebate under Section 87A has been enhanced under the new tax regime; from the current income level of Rs.5 lakh to Rs.7 lakh. Thus, individuals opting for the new income tax regime and having an income up to Rs.7 lakh will not pay any taxes   The income tax slabs under the new income tax regime will now be as follows: Rs 0 to Rs 3 lakh - 0% tax rate Rs 3 lakh to 6 lakh - 5% Rs 6 lakh to 9 lakh - 10% Rs 9 lakh to Rs 12 lakh - 15% Rs 12 lakh to Rs 15 lakh - 20% Above Rs 15 lakh - 30%   The revised Income tax slabs under new tax regime for FY 2023-24 (AY 2024-25)   Income tax slabs under new tax regime Income tax rates under new tax regime O to Rs 3 lakh 0 Rs 3 lakh to Rs 6 lakh 5% Rs 6
Post a Comment
Read more

Jaitley plans to cut MSME tax rate to 25%

By
Income tax for companies with annual turnover up to ?50 crore has been reduced to 25% from 30% in order to make Micro, Small and Medium Enterprises (MSME) companies more viable and also to encourage firms to migrate to a company format. This move will benefit 96% or 6.67 lakh of the 6.94 lakh companies filing returns of lower taxation and make MSME sector more competitive as compared with large companies. However, bigger firms have shown their disappointment since the proposal for reducing tax rates was to make Indian firms competitive globally and it is the large firms that are competing globally. The Finance Minister foregone revenue estimate of Rs 7,200 crore per annum for this for this measure. Besides, the Finance Minister refrained from removing or reducing Minimum Alternate Tax (MAT), a popular demand from India Inc., but provided a higher period of 15 years for carry forward of future credit claims, instead of the existing 10-year period. “It is not practical to rem
1 comment
Read more

Don't forget to verify your income tax return in August: Here's the process

By
  An ITR return needs to be verified within 120 days of filing of tax return. Now that you have filed your income tax return, remember to verify it because your return filing process is not complete unless you do so. The CBDT has reduced the time limit of ITR verification to 30 days (from 120 days) from the date of return submission. The new rule is applicable for the returns filed online on or after 1st August 2022. E-verification is the most convenient and instant method for verifying your ITR. However, if you prefer not to e-verify, you have the option to verify it by sending a physical copy of the ITR-V. Taxpayers who filed returns by July 31, 2023 but forget to verify their tax returns, will get the following email from the tax department, as per ClearTax. If your ITR is not verified within 30 days of e-filing, it will be considered invalid, and may be liable to pay a Late Fee. Aadhaar OTP | EVC through bank account | EVC through Demat account | Sending duly signed ITR-V through s
Post a Comment
Read more