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.