Engineering exporters' apex body Engineering Export Promotion Council has
urged the government to intervene and push for release of at least 90 per cent
of GST refunds to exporters immediately after the shipping bills are filed with
We strongly recommend the setting up of a ‘war room' for exports in the
commerce ministry as well as suggested by the Commerce and Industry Minister
Suresh Prabhu for foreign investors," EEPC India Chairman T S Bhasin said
in a statement here.
Expressing confidence in the newly appointed minister, he said Prabhu
should intervene with the finance ministry and the GST Council and get a relief
in terms of release of at least 90 per cent goods and services tax (GST) refund
on submission of the shipping bills, if a complete GST exemption is not
EEPC said that while the government has extended the dates for filing of
July returns for GST to September 10, 25 and 30 and for August to October 5, 10
Ironically, it would mean blocking of the refunds for exporters, who are in
any case hard pressed for cash and have been significantly disadvantaged by
continuous rise in value of rupee against the US dollar.
According to the 'back of envelope' calculations based on the July
engineering exports of 5.17 billion US
Dollars, or Rs 33,129 crore, the GST refunds of at least Rs 1,520 crore would
be held up till the third week of October for July.
If the Integrated Goods and Service Tax (IGST), paid by exporters, is
added, the dues to the exporting community would be in excess of Rs 1700 crore
for July itself. Such a dispensation would certainly add to our costs and make
our exports that much uncompetitive," Bhasin said.
He said exporters are facing extreme cash flow problem because of locking
up of the GST refunds with the authorities.
In view of this extraordinary situation, we urge the government to give
bulk of the refund to exporters immediately based on the shipping bills that
have been filed with the Indian Customs Electronic Commerce/Electronic Data
interchange Gateway (ICEGATE), the apex body said.
EEPC suggested that the verification and adjustment can be done later based
on the filing by the exporters as per their respective GST filing and returns.
This will help small and medium scale exporters to tide over the blockage
of funds and allow them to pay the salaries and bonuses of their workers in the
The members have pointed out that they are in a desperate situation and
hence government must intervene to avoid a mini social crisis, EEPC said.