Exporters not happy with GST refunds, claims

The tax department has asked exporters to file claims in proper form with matching shipping bills, however, the exporters rue that problems with the system were making it tough to comply.

The revenue department and the exporters are at loggerheads over unpaid refunds and tax credits that have accrued to businesses since the implementation of Goods and Services Tax (GST).
 
The finance ministry, in its official note on Wednesday, said that the quantum of IGST refund claims during the period July to October is about Rs 6,500 crore and the input credit claim is to the tune of Rs 30 crore.
 
The claim amount has left exporters in dimay. They said finance ministry, in a meeting with them, had said that Rs 6,500 crore was around 15 per cent of the overall dues to exporters.
 
"On this basis, the total outstanding refund would be to the tune of Rs 43,000 crore. Central Board of Excise and Customs (CBEC) has no figure of GST refund due to services exports as the same is not routed through customs or where shipping bill is filed. The quarterly exports of services is to the tune of $50 billion," a source was quoted as saying by TOI.
 
The tax department has asked exporters to file claims in proper form with matching shipping bills, however, the exporters rue that problems with the system were making it tough to comply.
 
"It has been observed that certain common errors such as incorrect shipping bill number in GSTR1, mismatch of invoice number and IGST amount paid, wrong bank account etc. are being committed by exporters while filing their returns. These errors are the sole reason for delay in grant of refunds, or rejection thereof," the ministry said.
 
The ministry advised exporters to take due precaution to ensure that no errors creep in while filing GSTR 1 of August 2017 and onwards. 
 
The facility for filing GSTR 1 for August 2017 would also be ready by 4 December 2017.
 
Source: TOI & Media reports

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