NEW DELHI: Since August, S C Ralhan, chief executive of Ludhiana-based Sri Tools Industries, is awaiting refund of the goods and services tax (GST) that his company paid on inputs that went into exports. The arrears now add up to over Rs 2 crore.
“There is a system error as two ports are involved. As a result, we have not received any refund for exports that we made since July (when
GST was launched),” Ralhan told TOI over the phone.
The exporter explained that goods from Ludhiana are dispatched from an inland container depot, before being shipped from a port in Mumbai and the system does not allow his company to generate two export general manifest, documents needed to claim refunds.
Like Ralhan, there are thousands of exporters, large and small, who have not received refunds. Despite several complaints, the Central Board of Excise & Customs (CBEC) has not been able to address the concern, resulting in an uproar in the exporter community.
With the finance ministry and the GST Network (GSTN), which has put up the IT backbone for GST, unable to resolve the problem, the PM's Office has now stepped in to find a solution.
The delay in refunds comes at a time when the country's exports have displayed signs of moderation. The government is keen to push exports as part of its overall growth strategy.
Estimates with exporters' lobby group Fieo suggest that claims of around Rs 25,000 crore have been filed with the authorities but around 30% have been settled so far. “People are unable to file applications. So, around 1 lakh applications have been filed but the number should be 2-2.5 lakh,” said Fieo director general and CEO Ajay Sahay.
Source: timesofindia.indiatimes.com