Errors in GST Return Filing Slows Down Tax Refunds to Exporters

As confirmed by the Central Board of Excise and Customs (CBEC), errors by exporters in filing GST returns are causing the delay in disbursing tax refunds. Only a third of the total returns filed under the new tax regime are eligible for tax refunds and the refund process for those with clear documents has begun.

GST Network cannot process the remaining claims due to mismatches and errors in the returns filed. Most of the errors are being found in shipping bills, invoices and some other export documents. Business firms with sales greater than Rs. 1.5 crore have to file the returns every month, whereas others can do it on a quarterly basis.

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So far, Refund Tax amounting to Rs 4,000 crore has been reimbursed under integrated GST (IGST). The total IGST refund due to exporters for this tax period stands at around Rs 13,000 crore. CBEC is working round the clock and conducting various outreach programmes to rectify the filing errors and ensure quick reimbursement.

Taxes collected on exports are refunded to maintain competitiveness in the international market. Any delay in refunds can cause a dip in liquidity for exporters. The GST Council and Finance Ministry are taking required measures towards minimizing liquidity crunch. The GST Council is looking for technical solutions like e-wallet to curb such issues.

However, in the meantime, the procedures involved in tax filing have to be simplified at all cost. Also, the GST Council must address the pending tax refunds at the earliest and save small and medium enterprises from relinquishing export orders due to limited funds.