Exporters, heads of export promotion councils and senior officials from the commerce ministry plan to submit a petition seeking the exemption when they meet the revenue secretary on Tuesday. “There is an apprehension that exports will decline, going ahead,” said an official aware of the meeting.
Exporters are likely to raise the issues of working capital and refunds which will be ploughed back into their business and the loss of interest.
“Merchant exporters and those in the small and medium enterprises are up in arms,” the official said. Micro, small and medium enterprises now have to pay GST when buying from merchant exporters. The government has a two refund mechanisms for exporters.
They can furnish a bond instead of paying integrated GST and claim refund of the unutilised input tax credit. This entitles them to get a 90% refund within seven days of acknowledgement of the application and the rest in 60 days. Alternatively, they can pay IGST and then claim the refund, which they get within 60 days.
Another official said certain traditional sectors like textiles and gems and jewellery are suffering and need special attention. A scheme offering higher duty drawbacks will end on September 30 and many exporters don’t have the finances to pay for exports.
The liquidity crunch is estimated at $10 billion for the July-October period.
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4 Comments on this Story
Col Ranbir Lamba1173 days ago
read my post 6 months back . Traders and exporters plus manufacturing will suffer .GST high taxation will ruin economy as many will avoid .inflation will rise and GDP will fall. worst than note ban failure
adeshwar raja B1173 days ago
In spite of all this noise most of the exporters are very profitable and doing well on personal grounds. Really not aure from this article if the exporters are facing such a crunch.
Ssundararaman 1173 days ago
Clumsy slip shod whimsical populistic gimmickry .. in neta-rule.. taking econ. decisions on political equations.. that too after 2 decades of cheating the people on gst.. this is what happens.. when professional governance is yet to set in... ? GOK