Rapping the government in its report on “impact of GST on exporters”, Parliamentary Panel on Commerce on Tuesday said the delayed refunds have caused significant hardships to the exporters, reported CNBC-TV 18. The government rolled out goods and services tax network (GSTN) is haste without adequately testing it, said the report. Here are the six major takeaways from the report:
1)The panel alleged that the government put exporters to the hassle of paying taxes and taking the refund.
2)The Parliamentary asked the government to provide clarity on the definition of the registered warehouse.
3)The panel asked the government to allow duty credit scrips for payment of GST for domestic procurement.
4)The panel also asked the government to allow duty credit scrips for payment of IGST for exports and imports.
5) One of the suggestions in the report advised the government to extend pre-GST drawback rates till June 30, 2018
6)The report also said that lack of export refunds competitiveness shaved off competitiveness by 1.2 to 2 percent.
Saddled with a massive amount of unverified input tax credit (ITC) claims from the taxpayers, the government fears that the goods and services tax (GST) revenue for November could be lower than Rs 80,000 crore. Government officials told FE that deferment in filing comprehensive triplicate forms (GSTR-1,2 and 3) has left the government with no viable option to check veracity of taxes paid and credits claimed. The finance secretary met revenue department officials from states and Centre on Saturday to analyse the GST collection trend to plug leakages following the reduction in October mop-up to around Rs 83,000 crore. This was much lower than the average collection in the first three months at over Rs 90,000 crore. Additionally, officials said there was a danger that the decline in revenue collection could continue in the months after November until the filing of triplicate forms starts in April next year. “The dealers know that it is impossible for the department to verify each claim and hence a trend has emerged where ITCs have skyrocketed. In hindsight, invoice-matching should never have been completely deferred as it has sent a wrong signal to the assessees,” an official told FE.