Even though the crucial issues under the yet-to-be GST are unclear, the
government has decided to refund within a week 90% of claims of exporters and
the remaining 10% duty refund will be made after verifications by tax
In case the duty refund is not made in time, then, the" government
will pay interest to exporters. However, it is yet to be decided how much
interest will be paid to exporters in such a scenario,” Commerce secretary Rita
Teaotia told the state ministers. The commerce secretary’s assurance satisfied
exporters and the states.
This measure would bring immense relief to the exporters from cash crunch
which they will have to experience since under the existing conditions the
refund takes months. To this scheme of duty refund, it must be noted here, that
" it will be possible if the states agree to the same, as exports are
subject to the Integrated GST, which has both central and state GST
components,” said S C Ralhan, president of the Federation of Indian Export
The issue was raised at a meeting of state industry ministers under the
Trade Promotion and Development Council, chaired by commerce and industry
minister Nirmala Sitharaman.
The commerce minister said the commerce ministry has designed a new scheme
called Trade Infrastructure for Exports Scheme (TIES) that will come into
operation from the next financial year to support states to build export
The scheme, the exact details of which are still to be finalized, will
replace the ASIDE (Assistance to States for Infrastructure Development of
Exports) scheme that was discontinued by the centre in 2015-16, when states’
share in net proceeds of union tax revenues was increased to 42% from 32%, in
line with the 14th Finance Commission’s recommendations.
However, the states are yet to agree to expediting refunds.
S.C. Ralhan, president, Federation of Indian Export Organizations, said
exporters require the support of the states so that exports do not face the liquidity
problems under GST.
“The Merchant Exporters, who at present avail exemptions through various
forms, may be given the same facility under GST. We have many meetings with the
Central Government but they feel it will be possible only if the States agree
to the same as exports are subject to IGST which has both Central GST and State
GST component. The exemption from IGST on the final product procured for
exports would help in easing the liquidity as cost of credit in India is much
above the international benchmark,” he said.