Home Business CBEC camps from Thursday for quicker procedure of GST refunds to exporters

CBEC camps from Thursday for quicker procedure of GST refunds to exporters

375
0
SHARE

(G.N.S) Dt. 12
New Delhi
The Prime Minister’s Office has called a meeting of top officials of commerce and finance ministries tomorrow 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 PMO is expected to meet with Commerce and Finance officials on Monday to look at the issue of piling up of export refunds claims. However, the industry claims basic problems in electronic filing have persisted, as the tax authorities are insisting upon some declarations that are legally difficult to provide.
The Central Board of Excise and Customs (CBEC) has already given refunds to the tune of Rs 5,000 crore but as much as 70 per cent of total refunds to exporters is still stuck even after eight months of GST roll out. Sarna said there are instances of exporters committing errors while filing refund claims and to help them, the department has started giving out refunds partially with manual intervention. “Now to solve it completely we have instituted a special fortnight campaign, starting from March 15 which will go on till March 29. There are going to be camps all over the country so that all exporters can come with refund problem and they will be explained what their problem is, they will be asked to rectify it and then the process will completed and refund will be given.
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.
“So we hope that by March 31 all pending refunds as far as exporters are concerned will be sorted out,” Sarna 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 GST Council in its meeting today decided to implement e-wallet scheme for refunds to exporters by October 1. 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.
To ease exporter woes, the Council has also allowed exporters to continue to claim tax exemptions till October 1, 2018. Accordingly, merchant exporters can pay a tax at the rate of 0.1 per cent on goods procured for export purposes and obtain a refund for the same. Also, domestic procurement made under Advance Authorisation, EPCG and EOU schemes are being recognised as ‘deemed exports’ with flexibility for either the suppliers or the exporters being able to claim a refund of GST/IGST paid thereon. The GST Council in its meeting on Saturday decided to defer implementation of the e-wallet scheme for refunds to exporters till October 1.
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.
An official statement issued after the Council’s meeting said that the CBEC and GSTN have started detailed data analytics and preliminary data analysis has revealed that there is variance between the amount of Integrated GST (IGST) and compensation cess paid by importers at Customs ports and input tax credit for the same claimed in GSTR-3B. Besides, it has come to light that there are major data gaps between self declared liability in GSTR-1and GSTR-3B. “It was deliberated that this information may be further analysed and adequate action may be initiated accordingly,” the statement added.
Also, domestic procurement made under Advance Authorisation, EPCG and EOU schemes are being recognised as ‘deemed exports’ with flexibility for either the suppliers or the exporters being able to claim a refund of GST/IGST paid thereon.
Exports during April-January 2017-18 grew by 11.75 percent to USD 247.89 billion as against USD 221.82 billion in the year-ago period. Exporters claim only 10 per cent of refunds have been made by the government for input tax credit and 30 per cent in case of the integrated GST (IGST). These claims have been contested by the Revenue Department of the Finance Ministry. According to the Central Board of Excise and Customs (CBEC), the nodal department for GST implementation, 88.77 per cent of refunds have been disbursed for input-tax credit claims. It claims that of Rs 41 billion claimed under completed applications, refunds worth Rs 37 billion have been refunded.

Print Friendly, PDF & Email

LEAVE A REPLY

Please enter your comment!
Please enter your name here