CHENNAI : Reacting to the trade data for the month of October 2017 which has shown decline in export of major manufacturing and labour oriented sectors Dr. Sakthivel, Regional Chairman, FIEO (SR) said that exporters could not take advantage of positive trend in global trade due to serious cash crunch.
While referring to the difficulties faced by the exporters in getting GST refund for Tax paid on exports during the month of July and August, Dr. Sakthivel said that irrespective of the best effort of the Department to disburse refund claims due to systemic issues including the need for matching various heads of different returns majority of the cases of refund claims could not be settled. Hence he requested Central Board of Excise ad Customs to come forward to issue GST refund based on details of IGST paid on exports immediately and post-verification if necessary can be done on later stage.
Referring to the reduced Duty Drawback rate for across the sectors Dr. Sakthivel urged Finance Minister to reinstate old rate of duty drawback at least upto 31st March 2018 including reinstating old ROSL rates so that Indian products become competitive and take advantage of positive market trends or else bring in a system to refund all embodied taxes suffer in export products.
He also urged the Finance Minister to instruct the banks for providing soft loan against GST refund receivable so that exporters can come out from serious financial crunch. FIEO Regional Chairman also urged GST Council to refund input tax suffered on export products from July to October immediately and in case the system is not ready, the refund may be provided based on the claim by the exporters and post-verification can be done on later stage, Dr. Sakthivel said.