In a move that would benefit the MSME exporters, Commerce & Industry Minister Nirmala Sitharaman has said that the Department of Revenue (DoR) will refund the tax claims of Indian exporters within seven days.

The Minister also said that exporters would get interest on the refund, if it is delayed beyond two weeks.

Commerce Minister has put her proposal in before government. Announcement came considering that exporters have been demanding exemption from Goods & Services Tax (GST) regime on certain grounds. According to the exporters delay in refunds often takes months and results in blocking of working capital.

According to the Dr. Yerram Raju, Economist, it is a positive decision and government should approve it for the sake of exporters.

“It is a very positive recommendation and I hope that government will accept this,” said Dr. Raju.

 “But within a week it cannot be done as per the election code. Approval of the recommendation shall be considered by the finance mister in the budget,” added Dr. Raju.

After chairing the meeting of the Council for Trade Development and Promotion here on Thursday, Commerce minister told reporters that the concern of the exporters was that the refund should not take too long.

Elaborating on the issue, Commerce Secretary Rita Teaotia said the Department of Commerce has been taking up this matter with the Department of Revenue (DoR).

She said according to the GST, it clearly provides that the taxes must be paid and that the refund will be provided. According to her, since the regime is so structured, in order to see that there is minimum pain to the exporters, what the DoR has committed that 90% of the refund will be made within seven days. Delays beyond that would invite interest payment. (KNN/RAS)