GST blues: Pharma exporters in Karnataka facing cash flow crisis under the new taxation
New Delhi, Nov 25 (KNN) The pharmaceutical companies including the Micro, Small and Medium Enterprises (MSMEs) sector have been facing major cash flow crisis due to delay in refund on Integrated Goods and Services Tax (IGST) payment, Karnataka Drugs and Pharmaceutical Manufacturers Association informed.
Anjan K Roy, founder and chairman, RL Fine Chem in a press interview said that the delay in the refunds on IGST paid had affected the MSMEs badly and payments to vendors, stalls supply chain and flow of exports had been stalled .Apart from cash crunch, exporters had been facing problems in applying for refunds on the websites.
He added that the government should make the tax regime smooth and should start refunding otherwise some exporters might go out of business.
Sunil Attavar, president, Karnataka Drugs and Pharmaceutical Manufacturers Association (KDPMA) said that the government has issued a series of new notifications to help exporters to get their refunds. KDPMA had approach senior officers and they have assured the Association that the process of refunds had started and the procedural problems would be sorted out soon.
The delay in IGST refunds had derailed the payment cycle.
Exporters complain that export benefits under MEIS (Merchandise Exports from India Scheme) are also not yet been provided to the exporters. (KNN/AG)