government’s GST refund fortnight window has made it possible that exporters
get their refund if all the formalities have been gone through without lapses.
Mr. Ganesh Kumar Gupta, President, FIEO has said that the fortnight refund was
moving satisfactorily till now and could see a record clearance of about Rs
14,000-15000 crore adding that he is not receiving as many (exporters)
complaints as before.
(refund fortnight has been) satisfactory. By the end of it, the refund
clearance figure will be around Rs 14,000-15,000 crore because they (Central
Board of Indirect Taxes and Customs) are aggressively refunding the IGST
(Interstate GST) claims. We will know the exact figure soon,” said Gupta.
almost double the amount cleared during the refund fortnight of March. The
Central Board of Indirect Taxes and Customs (CBIC) had cleared Rs 7,000 crore
fortnight window to clear the backlog of exporters’ claims under the Goods and
Services Tax (GST) regime could see close to Rs 14,000-15,000 crore of the
pending amount being sanctioned by June 16.
Federation of Indian Exporters Organisation (FIEO) feel that this 15-day window
may not see the over Rs 20,000-crore refund – for which claims have been filed
– sanctioned as there were issues that still remain unresolved.
The data put
out by the Government recently showed that the GST refund sanctioned to
exporters till now was Rs 30,000 crore. They said the pending claims amounted
to Rs 14,000 crore, which is lower than the FIEO’s figure of Rs 20,000 crore.
that refunds were still stuck for those who were unable to file returns due to
technical glitches on the GST returns filing platform – GST Network (GSTN).
Even claims – where the figures in the GST returns and refund claims were not
matching – have been rejected by the CBIC.
“I am not
receiving as many (exporters) complaints as before. So far, as my company or
its sister firms are concerned, they have all received the refunds to the
extent of 96%-97%. I believe everybody must be getting it,” added Gupta.
Director General (DG) and CEO of FIEO, revealed that exporters' refunds are
still stuck due to export general manifest (EGM) errors, which he believes
could result in 5% of the refund claims lying with the CBIC.
“That is an
area, where we require improvement because if there are EGM errors then the
refund is not processed by the customs,” said Sahai.
The EGM is
filed by exporters when a ship leaves the Country, which shows that there has
been an export transaction.
related to EGM error) would be a sizeable amount. Most of those, who are
exporting from Inland Container Depot of Ludhiana, Faridabad, Bengaluru and
others are affected by it,” added Sahai.
The DG of
FIEO said refunds are stuck due to returns filing issues, which have persisted
as “system software has not been modified so far”.
days back, they (CBIC officials) told us that they will be modifying the
software in a week’s time, but it has not yet been resolved (till now),” he
Sahai, problems relating to input tax credit (ITC) refund has also further
aggravated the exporters’ working capital woes. “For exporters, who are not
exporting in the month in which they procure inputs – for whom the ITC claims
and exports are in different months – for such exporters (working capital)