Skip to main content

GST Refund of Rs 20,000 Cr Pending: Exporters’ Body

GST Refund of Rs  20,000 Cr Pending: Exporters’ Body
Refund of over Rs 20,000 crore on account of Goods and Services Tax (GST) is pending with the government with more than half the amount stuck as input tax credit, Federation of Indian Export Organisations said on Tuesday.
While claims over Rs7,000 crore were cleared in March, the amount was Rs 1,000 crore in April.However, after exporters’ request, the GST council and tax department are organizing a second phase of Special Refund Fortnight starting May 31, which will enable exporters to draw their refunds at a speedy pace.
Many exporters have been unable to file the refund of input tax credit due to technical glitches, exports and claim happened in different months. The major challenge lies on ITC refund especially because the process is partly electronic and partly manual which is cumbersome and add to the transaction cost, the exporters’ body said. On IGST, refunds are getting delayed due to airline and shipping companies not submitting proof of export to customs and mismatches of invoice numbers in shipping bills and GST return forms, FIEO said.
“IGST exemptions are being made time to time, which have led to instability. The exemptions should be made on a permanent basis,” said Ganesh Kumar Gupta, president, FIEO, adding the refund process has considerably slowed down after the clearance fortnight.
The apex body of exporters expects India’s exports to grow 15-20% in FY19 to USD 350 billion despite challenges on GST, increasing protectionism and credit squeeze because of rigid approach of banks. These factors have also affected employment creation.
“As a result, job creation has been dented. According to a rough estimate, every USD 1 million worth of exports creates 100 jobs. Therefore, additional exports of USD 2.7billion should have created 2.7 million jobs in exports,” Gupta said.Ajay Sahai, director general of FIEO, said growth will be driven by automobile, auto components, pharmaceutical, organic and speciality chemicals and plastic goods exports.

Rising petroleum and commodity prices would also add to export growth. The recent depreciation of Indian Rupee has helped traditional exports like handicrafts, carpets, marine products, agroprocessed products, sports goods, apparels & textiles and leather which depend primarily on domestic inputs.

The tough stand taken by banks has affected flow of credit and hence, exports. Sectors which are not doing well and require maximum support are the worst hit due to the rigid approach of the banks, FIEO said.

The Economic Times, New Delhi, 30th May 2018

Comments

  1. Hey Buddy! What a fantastic post, thank you so much ☺
    I am really impressed by the information you are providing by this post/article.
    Thank you again!
    Professional Painting Service Provider for Apartment/Villa/Houses in Dubai U.A.E.
    Apartment Painting Services Dubai

    ReplyDelete
  2. Nice post with accurate information on the internet, sharing it with friends now.
    Thank you,
    Deccan Building Cleaning Services LLC Dubai UAE
    Move In Deep Cleaning Dubai

    ReplyDelete

Post a Comment

Popular posts from this blog

SC order on RBI circular: More options for banks to tackle defaulting firms

Lenders also have the option of restructuring the loans Lenders to companies which are under stress could now have three options to deal with them if they default on loans: take a haircut as part of a one-time settlement, restructure the loans for a longer tenure as they did when corporate debt restructuring schemes were allowed, or go to the Insolvency and Bankruptcy Code (IBC) for redress. These changes in the options available to lenders come, according to PE funds and bank lawyers who are involved in the IBC process, in the wake of the Supreme Court on Tuesday setting aside the 12 February RBI circular, which allowed a 180-day window to banks to resolve a company default.But they can still find a resolution. According to a Reserve Bank of India circular, a loan becomes a non-performing asset when banks cannot find a way of recovering their money in 90 days. In short, banks still have a window to resolve the default. Lenders can take a haircut as part of a one -time settlement of du…

April GST collections at new high despite rate rationalisation in December

Goods and services tax (GST) collection touched a record high in April, exceeding Rs 1 trillion for the third time in four months. The mop-up was 10 per cent higher over the previous year. Gross collection for the month was Rs 1.13 trillion, said the finance ministry. Despite the recent rate rationalisation in December, a rise in collection was reported. Of the total collected, the CGST (central GST) contributed Rs 21,163 crore, the SGST (state GST) Rs 28,801 crore, the IGST (integrated GST) Rs 54,733 crore (including Rs 23,289 crore on import) and cess Rs 9,168 crore (including Rs 1,053 crore on import). After settlement of the IGST and the balance IGST in a 50:50 ratio between the Centre and states on a provisional basis, the CGST stood at Rs 47,533 crore and SGST at Rs 50,776 crore. The CGST target in the Union Budget for 2019-20 is Rs 6.1 trillion. “The April collection indicates the tax base is increasing gradually, with GST getting stabilised with measures such as e-way bills and…

Shrinking footprints of foreign banks in India

Shrinking footprints of foreign banks in India Foreign banks are increasingly shrinking their presence in India and are also becoming more conservative than private and public sector counterparts. While many of them have sold some of their businesses in India as part of their global strategy, some are trying to keep their core expertise intact. Others are branching out to newer areas to continue business momentum.For example, HSBC and Barclays Bank in India have got out of the retail business, whereas corporate-focused Standard Chartered Bank is now trying to increase its focus on retail “Building a retail franchise is a huge exercise and takes a long time. You cannot afford to lose it,” said Shashank Joshi, Bank of Tokyo-Mitsubishi UFJ’s India head.According to the Reserve Bank of India (RBI) data, foreign banks’ combined loan book shrunk nearly 10 per cent from Rs 3.78 trillion in fiscal 2015-16 to Rs 3.42 trillion last financial year. The banking industry, which includes foreign banks…