New Delhi, Sept 20 (KNN) With the Goods and Services Tax in its third month since implementation, the exporters comprising of a fair share of the Micro, Small and Medium Enterprises (MSMEs) in the country complain capital crisis as the GST refunds continue to take time.

Different exporters associations raised their concern during a meeting with Revenue Secretary Hasmukh Adhia demanding appropriate action from the GST council

P.K Shah, former Chairman and currently board member, Engineering Exports Promotion Council (EEPC), in a press statement said that the festival season is likely to suffer following capital crunch. Also the workers employed in the trading and manufacturing units are to suffer due as they too are not able to avail their salaries.

EEPC said that the best way out could be that 90 per cent of refunds get released immediately after the shipments and allow the verification and adjustment be done at a later stage.

If done so, the small and medium exporters will be able to cope up with the problem of funds. Also they will be able to pay salaries and bonuses of workers in the festival season.

Another exporters body The Federation of Indian Exports Organization (FIEO) raised similar concerns that the deferment in mandatory filing of GST return forms, and difficulty in receiving tax returns is resulting in poor export rate of the country.

FIEO director, Ajay Sahai opined that this might lead to a big loss to the sector.

FIEO further said that the sector is likely to be hit by the large fall was in export orders that are to be delivered until October. (KNN/DA)