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Commerce Ministry Condemns DRI’s Notices Under GST! Why?

Notices for Availing Invalid GST Exemptions

Commerce ministry is rummaging jury-rigged expedient for the exporters by implementing the pre and post-import integrated goods and services tax (IGST) exemption for inputs contributed in export between October 2017 and January 2019.

Commerce Ministry runs counter to the 1000 notices being sent to exporters by Directorate of Revenue Intelligence (DRI) on grounds of allegedly breaching the laws of Goods and Services Tax with its finance counterpart. 

Ministry holds “overzealous revenue collection” by DRI (Directorate of Revenue Intelligence) responsible for unnecessarily aggravating the exporters. 

Around 1000 exporters have received GST notices regarding the non-payment of duties For those who are a bit unfamiliar with the GST demand notice, the possibility of reconciling data rely on the taxpayers as mentioned under the GST Act. on imports and flouting import laws. Dinesh Maheshwari who is an executive director & chief financial officer at Future Enterprises Ltd has also been arrested by DRI for disobeying GST related rules & regulations that permits tax-exempt shipments of specified goods under a free trade agreement with Bangladesh. However, the notices to exporters were sent by DRI after receiving government order to take legal actions against exporters for illegal availment of advance authorisation licenses that approves duty-free import of inputs.

Ministry urged Department of Revenue in written for putting forth the demand for providing retrospective GST exemption to exporters in the GST Council meet comprising state ministers under the chairmanship of the finance minister.

“This department is of the view that enthusiasm of exporters should not be killed by overzealous revenue collection based on technicalities where revenue does not accrue in principle. You may consider placing these concerns before the GST Council Get to know the details about GST council and how it works for GST implementation in India? We also describe its constitution, functions, quorum and decision-making. for early resolution,” the commerce ministry said.

Ministry underlined the fact that the imports made from October 2017 to January 2019 comes under the advance authorisation scheme and so are duty-free pre as well as post export. However, the notices sent by DRI to the exporters are regarding claim only the post-import IGST exemption for the period from October 2017 to January 2019.

During the period, the IGST exemption was permitted only for pre-import of inputs. But from 15th January 2019, the exemption was permitted on both for pre as well as post-import. However, the Commerce Ministry is making a call for the implementation of this rule from October 2017 itself instead of January 2019.

Disclaimer:- "All the information given is from credible and authentic resources and has been published after moderation. Any change in detail or information other than fact must be considered a human error. The blog we write is to provide updated information. You can raise any query on matters related to blog content. Also, note that we don’t provide any type of consultancy so we are sorry for being unable to reply to consultancy queries. Also, we do mention that our replies are solely on a practical basis and we advise you to cross verify with professional authorities for a fact check."

Published by Resham Aswani (Ex-Employee)
A B.com graduate, a certified pranic healer, and tax & accounting geek is currently pursuing correspondence M.B.A, always keen to learn new things and grow professionally. Resham Aswani has joined SAG Infotech as a content writer as she has a keen interest in research, writing and staying updated about the latest affairs in taxation and accounting sector. Resham likes to shed light on the current happenings in the taxation field by writing crisp, bold articles to keep her audience updated. View more posts
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