Engineering exporters’ apex body Engineering Export Promotion Council (EEPC) of India has impressed upon the new Commerce and Industry Minister Suresh Prabhu to intervene and push for release of at least 90 per cent GST refunds to exporters immediately after the shipping bills are filed with the authorities.
“We are quite sure that Prabhu would intervene with the Finance Ministry and the GST Council and get us a relief in terms of release of at least 90 per cent GST refund on submission of shipping bills, if a complete GST exemption is not feasible,” said EEPC India Chairman T S Bhasin.
Government has recently extended the dates for filing of July returns for Goods and Services Tax (GST) to September 10, 25 and 30 and for August to October 5, 10 and 15. This would unfortunately mean blocking of GST 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.
In a bid to help small and medium scale exporters to tide over the blockage of funds, the Council has urged the government to give bulk of the refund to exporters immediately based on the shipping bills that have been filed with the ICEGATE.
“The verification and adjustment can be done later based on the filing by the exporters as per their respective GST filing and returns. Our members have pointed out that they are in a desperate situation and hence government must intervene to avoid a mini social crisis,” said Bhasin.
“Such a dispensation would certainly add to our costs and make our exports that much uncompetitive,” he added.
The Council has also strongly recommended a “war room” for exports.
According to the calculations based on July engineering exports of Rs 33,129 crore, GST refunds of at least Rs 1520 crore would be held up till the third week of October for July. If the IGST, paid by exporters is added, the dues to the exporting community would be in excess of Rs 1700 crore for July itself.