A demand has been put by the Export Promotion Council of India for the online linkage of the Goods and Services Network (GSTN) with the NSDL portal to ensure a fast and smooth transition of GST refunds.
Ever since the GST has been launched in the country, the biggest issue for the exporters has been of timely refunds of input tax credits, which directly affects the cash flow and in turn the production capacity of these businesses.
During an open house, which was held in Delhi on April 25 and witnessed the presence of more than 250 EOUs and SEZs exporters from all over the country, the suggestion to link GSTN and NSDL online was made in front of officials of finance, commerce ministries and GSTN to solve the issues of exporters and timely refund of tax credits.
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According to the report, as much as 60 percent of the total refunds of exporters across the country are stuck with the government. GST refunds worth around Rs 17,616 crore has already been allocated to exporters till March, however, many refund cases are still pending for review.
Among other suggestions put by exporters, one was to allow SEZ units to claim refunds against the GST paid to suppliers. As per the existing rule, suppliers can provide goods/services to SEZ units under LUT without having to pay IGST, or alternatively, they can pay tax for which refund could be claimed. Most suppliers are taking the second option and charging GST from SEZ businesses, however, SEZ units as of now cannot claim the refund of taxes. The ministry, in response, confirmed that a separate method will be introduced through which SEZ units would be able to claim refunds.
The discussions also took place regarding various rulings including the recent one, which implemented GST on the supplies made by Duty-free shops at Indian airports. Other issues were related to the classification of products and services for tax rates, GST exemption and technical issues related to GSTN.
“We have compiled all the suggestions and made a written representation to Ministry of Commerce & Industry, Ministry of Finance, CBEC, CBDT, NSDL and members of the GST Council,” said Vinay Sharma, Chairman of the EPCE, who was present during the session.
The open house was attended by a number of GST official including the likes of Arun Goyal, Special Secretary, GST Council, L.B. Singhal, Development Commissioner, Noida SEZ, Yogendra Garg, Additional Director General, Directorate of GST and Dheeraj Rastogi, Joint Secretary, GST Council.
The reports claim that the overall exports from SEZs in India during the current financial year is higher than the last year. The merchandise and software worth Rs 5,51,344 crores were exported from SEZs in 2017-18 as compared to Rs 4,68,567 last year.
