Exporters' GST Refund To Be Resolved Within 2-Months, Assures Revenue Secretary

News World India | 1
| October 8 , 2017 , 14:08 IST

After reforms in the new taxation system Goods and Services Tax (GST), the government has announced that it will start clearing the pending GST refunds to exporters by November-end while no tax will be levied on exports over the period of next 6 months.

Revenue Secretary Hasmukh Adhia said, "For a period of 6 months, we are actually reverting back to the pre-GST scenario (where manufacturing exporters or those who manufacture goods for exports did not pay any tax). So, they have no reason for any complain now."

Assuring the Adhia issue of refund to exporters will be resolved within two months he said that over July-August, an estimated Rs 67,000 crore has accumulated as the Integrated GST (IGST), of which only about Rs 5,000-10,000 crore will be due as refunds to exporters.

The government's decision comes in an effort to provide the exporters a relief period to get used to the new taxation system.

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The secretary also talked about the e-wallet that will be provided to the exporters after the relief period. "From April 1 an e-wallet service will be launched that will give exporters notional credits that can be used to pay GST, he said. The credit in the wallet would be transferable," he said.

"Under GST, even a merchant exporter who collects goods from many producers and exports  has to pay the full rate of duty and seek the refund. But, he is only an aggregator. So, that was the problem and it has been sorted out," he added.

He also said, "It is possible that the manufacturing exporter himself has no liability to pay, but the supplier who gave him inputs may have. So, he can transfer credit (from e-wallet) to the supplier account. So, the e wallet would be transferable, just like any other wallets, but the only restriction is that it can't be given in cash, it can be only used for payment of duty."