Skip to main content

Govt Refutes Exporters’ Claim on Pending GST Refunds

By
Govt Refutes Exporters’ Claim on Pending GST Refunds
Says there has been no dip in refunds; special refund fortnight to begin from May 31
The government has refuted exporters’ claim that Rs 20,000 crore of goods and services tax (GST) refund is pending, and said there has been no dip in refunds as it announced a special refund fortnight beginning May 31.
“Refund claims to the tune of RS 7,000 crore-Rs 14,000 crore on the IGST side, and Rs 7,000 crore on account of ITC, are pending with the government as on date, as against the figure of ?20,000 crore projected by FIEO in the press reports,” the government said in a statement.
The Federation of Indian Export Organisations (FIEO) had on Tuesday raised the issue of refunds claiming a slowdown and Rs 20,000 dues.The government admitted that refunds of goods and services tax (GST) have been a concern for both itself and trade for the past several months, but so far Rs 30,000 crore GST refund has been sanctioned -- Rs 16,000 crore of IGST and Rs 14,000 crore of input tax credit. “Contrary to the press reports that there has been a dip in refund sanction after the first Refund Fortnight in March 2018, the refund sanctioned during May 2018 is to the tune of Rs 8,000 crore,” it said.
A ‘Special Drive Refund Fortnight’ beginning May 31 been announced to clear the dues.Government has asked those with pending refunds to approach their jurisdictional tax authority for disposal of any of their refund claims submitted on or before April 30 which are still pending.
ERRONEOUS DECLARATIONS
The Central Board of Indirect Taxes and Customs (CBIC) is implementing a solution to process refunds held up in cases where exporters have mistakenly declared their export supplies as domestic supplies. A circular issued by the government on May 29 states that on receipt of the records from GSTN, the customs would automatically process the refunds for sanction, if no other errors are committed by exporters.
A separate circular issued on May 30 relates to refund claims by input service distributor, composition dealer, exports of services and supplies made to special economic zones. The circular also clarifies issues related to requirement of letter of undertaking in cases of export of exempted or non-GST goods and scope of restriction imposed and also refunds of input tax credit relating to compensation.
“The circular for refund of IGST paid on exports allows refund even in case of mismatch of tax liability on exports of goods disclosed in GSTR 3B and GSTR 1. This is welcome development,” said Pratik Jain, indirect tax leader at PWC.
The Economic Times, New Delhi, 31st May 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