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Monday , 16 July 2018
Breaking News

GST refunds yet to be transferred to exporters

The government has provided reassurances to exporters that their GST refunds will be processed, but it has not been done yet. The exporters have staged various protests and written to the government regarding their GST returns. The entire issue has cropped up due to the changes introduced for exports, as per the newly launched Goods and Services Tax (GST). Earlier, the exports were entirely exempted from tax, but after GST, exporters are required to pay taxes on the things they manufacture or purchase. There is a provision within GST that allows such taxes to be claimed as refunds. The claims can be made after goods have been delivered to their destination outside of India. Experts said that problems of exporters need to be resolved urgently since exports play an important part in the country’s GDP. If the GDP growth is to be increased, the government will have to resolve the problems of the exporters.

The exporters said that since their claims have not been refunded, they are facing working capital shortages, which in turn is impacting exports. Since the launch of GST in July, the government has collected approximately Rs 67,000 crore. This is as per the Integrated Goods and Services Tax, which is charged for inter-state movement of goods. However, the government has not yet processed the refunds for these. Earlier, the GST council had said that July refunds will be cleared by October 10 and August refunds will be paid after October 18. However, most exporters are yet to receive any refunds.

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