Allaying concerns of exporters related to GST, the commerce ministry today said it is looking at all options to ensure timely refund of taxes under the new indirect tax regime to be rolled out next month. Director General of Foreign Trade (DGFT) A K Bhalla also asked the exporters to take up their issues related with Goods and Services Tax (GST). The Federation of Indian Export Organisations (FIEO) has expressed serious concerns over refund of duties as it takes a lot of time. They have demanded ab-initio exemption from paying of taxes.
FIEO has stated that paying duties first and then seeking refund would result in blockage of working capital with the government. “We are definitely looking at the impact you people will be having because of the working capital thing…we are looking at all the possible (options),” Bhalla told exporters here. He was addressing at the FIEO’s outreach programme on GST, which was attended by over 200 exporters. The government, he said, has extended interest subsidy scheme to exporters to deal with credit related problems.
“We can look at whether we can expand this (scheme),” Bhalla said, adding, “please flag your concerns with the state finance ministers also so that they are aware of your issues. Refund should come in minimum possible time, we would try for that”. He said exporters should bring in the notice of tax exemption issue to states and explain them that “exemptions need to be given”. Explaining the benefits of GST, he said the new regime will be very beneficial for exporters.
“Let us transit into a new regime. Let us understand that. The foreign trade policy will continue as it is…You will get much more credit in your account,” he said. The government plans to implement the GST, which will unify 16 different levies, from July 1. The GST Council will meet tomorrow to decide on tax rates for six goods and will also clear pending rules for the new indirect tax regime.