New Delhi: The Prime Minister's Office has called a meeting of top officials of commerce and finance ministries on Monday to discuss the issue of GST refunds as exporters claimed that their 70 percent of refunds are still stuck even after eight months of roll out of the new tax regime.
The meeting would also assess the impact of delay in refund process on exports and manufacturing, sources said.
The issue of refunds to exporters has been hanging fire for over five months now, with exporters complaining that delay in GST refunds has blocked their working capital.
The revenue department, on the other hand, has argued that there are discrepancies in forms submitted by exporters with the customs department and those with the GST Network (GSTN).
The Central Board of Excise and Customs (CBEC) has sanctioned Rs 4,000 crore worth refunds to exporters in four months since October. Still, claims of about Rs 10,000 crore are stuck due to discrepancies in the information furnished by exporters to GST Network (GSTN) through forms like GSTR 1 or Table 6A or GSTR 3B, and the shipping bills filed with the Customs.
According to sources, the meeting would be attended by Finance Secretary Hasmukh Adhia, Commerce Secretary Rita Teaotia, CBEC Chairperson Vanaja Sarna and top officials from the Directorate General of Foreign Trade (DGFT).
The DGFT, under the commerce ministry, is slated to make a presentation before the principal secretary to the prime minister on the pending refunds to exporters.
The GST Council in October last year had said that an e-wallet mechanism for refunds to exporters would be developed and had entrusted the DGFT to prepare required norms for the implementation from April 2018.
Under the e-wallet mechanism, a notional credit would be transferred to the exporters account based on their past record and the credit can be used to pay taxes on input.
Exports during April-January 2017-18 grew by 11.75 percent to $247.89 billion as against $221.82 billion in the year-ago period.
Published Date: Mar 11, 2018 15:17 PM | Updated Date: Mar 11, 2018 15:17 PM