NEW DELHI: Exporters told a high level government panel on Tuesday that that Rs 65,000 crore could get stuck in the July-October period if the current mechanism of refunds for the goods and services tax (GST) continues and asked the government to fast track the refund process to improve their liquidity situation.
Exporters flagged their concerns on liquidity crunch and the loss of competitiveness of India’s exports due to the
GST to a committee headed by revenue secretary Hasmukh Adhia.
Members of seven export promotion councils, Federation of Indian Export Organisations and officials from the commerce ministry discussed the issues ailing exports with Adhia, chief economic advisor Arvind Subramanian and GST commissioners of various states.
Adhia is also chairman of the Committee on Exports set up by the GST Council.
“If refund does not start flowing immediately then about Rs 65,000 crore would be stuck by the end of October. This will further deteriorate exporters' liquidity situation,” said FIEO Director General Ajay Sahai.
With filing of the GST return forms- GSTR-1,2 & 3 for July now extended to October 10, October 31 and November 10, respectively, refunds are likely to come in by December.
“Huge capital is blocked in refund. Exporters will have to pay GST for July to October period from their own resources,” said FIEO in its presentation.
The apex export promotion council suggested a quick refund mechanism based on GSTR-1 and GSTR-3B forms.
While GSTR-3B is the initial simplified returns which businesses have to file, GSTR-1 is the final sales return to be filed every month.
Exporters also sought a uniform rate for job work at 5% which in sectors other than textiles is 18%.
Source: economictimes.indiatimes.com