Commerce & Finance Ministry working together for early release of Rs.14,000 cr of GST refund to exporters

Inter departmental parleys are intensifying between Department of Commerce and Revenue for early release of pending Rs.14,000 crores of export refunds relating to GST as the Government has already disposed off GST refunds amounting to Rs.20,000 crores by April 2018, according to the Additional Directorate General of Foreign Trade, Mr. N K Srivastava.

Addressing a Workshop on Issues in Export & Import of Goods & Services vis-à-vis Foreign Trade Policy under aegis of PHD Chamber of Commerce and Industry here, Mr. Srivastava also disclosed that the focus of the Government is also shifting towards creation of sector specific export promotion to enable India further rise its exports.

To this effect, a Committee has been constituted within the Department of Commerce to examine the potential of sectoral exports that have been until now stayed put unattended to, added Mr. Srivastava pointing out that concentration of India’s exports proceeds till now remained largely on services particularly relating to IT.

In his welcome remarks, Vice President, PHD Chamber, Mr. D K Aggarwal highlighted the grievances being faced by exporters relating to their refunds and asked the government to take up the issue with faster and accelerated pace.

According to him, Indian exports in the last couple of years have not been proceeding with required pace and speed including volumes,and exports have shrunk only to an extent of 12% of GDP which is a matter of concern for India in particular and trade in general.

Chairman, Indirect Taxes Committee, PHD Chamber, Mr. Bimal Jain in his theme presentation drew a comparison between pre-GST and post-GST exports and pointed out that in the current regime must ensure ease of business with simplification for exports of goods and services with timely refund of GST so as to ensure no working capital gets blocked in the hands of exporters.