Exporters to take up GST refund issue with Finance Minister today

Posted by Daily Shipping Times on 28-09-2017        Tweet

NEW DELHI: Exporters plan to take up the issue of quick refunds, a uniform goods and services tax on job work and concerns of small and medium enterprises when they meet Finance Minister Arun Jaitley.

“The Minister wants to know industry’s concerns about GST,” said a person aware of the stakeholder consultation, adding that the meeting is a precursor to the GST Council meeting on October 6.

Exporters are likely to seek a uniform job rate of 5% in GST regime, which was introduced on July 1.

“Job work for some sectors like handicrafts and carpets is complex. So many processes are involved and the credit flows between the exporter and the job worker. So the Government does not get any revenue from this transaction,” the person said.

Exporters could reiterate the need of fast-tracking the refund process to improve their liquidity situation.

At a meeting with Revenue Secretary Hasmukh Adhia last week, exporters had said that Rs 65,000 crore could get stuck in the July-October period if the current mechanism of refunds for GST continues. This amount was disputed by the Government later.

Exporters flagged their concerns over the liquidity crunch and the loss of competitiveness of India’s exports on account of the refund process.