Export refunds in slow lane
The refund to exporters under the goods and services tax regime has begun at a slow pace with about Rs 130 crore of July tax disbursed in the first 10 days.
- Published 24.10.17
New Delhi: The refund to exporters under the goods and services tax regime has begun at a slow pace with about Rs 130 crore of July tax disbursed in the first 10 days.
Of the total integrated GST claim of about Rs 750 crore in July, officials said so far about Rs 130 crore have been paid back to exporters.
"The refunds are on the lower side of our estimates. We hope that all refunds for July and August will be cleared by the end of this month," Ajay Sahai, director-general and CEO of exporter body FIEO, said.
Though there is no GST on them, exporters have to pay IGST, which is refunded. The slow pace of IGST refunds is significant given that the GST Council, in its last meeting, had announced that all pending refunds for July and August would be cleared at the earliest - those for July would start by October 10 and for August by October 18. The issue has now been raised by the finance ministry as well as exporters, who have urged tax officials to expedite the refunds.
The government has asked exporters to align the bank account given to the customs department and the one mentioned in the GST registration form for the disbursal of refunds.
"In order to ensure smooth processing and payment of refund of IGST paid on exported goods, it has been decided that the said refund amount shall be credited to the bank account of the exporter registered with Customs even if it is different from the bank account of the applicant mentioned in his registration particulars," the CBEC said.
It also advised exporters to either change the bank account declared to Customs to align it with their GST registration particulars or add the account declared with Customs in their GST registration details.
GST Network today said it has launched an offline tool for businesses to quarterly file a form detailing inputs or capital goods sent to job workers and received back from them. The excel-based offline tool has been made available for preparing and uploading the statement in form GST ITC-04. The tool can be accessed inder the "download" section of the GST portal, GSTN said in a statement.