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28/11/2018 08:19am

FISME facilitates meeting of MSME exporters with GST officials over pending IGST refund

image FISME facilitates meeting of MSME exporters with GST officials over pending IGST refund

New Delhi, Nov 28 (KNN) Large number of exporters from Micro, Small and Medium Enterprises (MSMEs) sector held a meeting with senior GST officials over their pending refunds due to drawback issue in Integrated Goods and Service Tax (IGST). The meeting was facilitated by Federation of Indian Micro and Small & Medium Enterprises (FISME) in the national capital.

More than 70 exporters were present in the meeting.

SK Rahman, Additional Director General, Directorate of GST along with other officials were present in the meeting.

On the vex issue of refund of IGST in cases where exporters ‘erroneously’ opted for higher drawback, Rahman apprised them about a recent CBIC Circular which said “…There is no justification for re-opening the issue at this stage.”

He elaborated that the directorate can’t reopen the issue at this stage as it may lead to double claims or would result into CAG’s objection.

“It has been noted that exporters had availed the option to take drawback at higher rate in place of IGST refund out of their own -volition. Considering the fact that exporters have made aforesaid declaration while claiming the higher rate of drawback, it has been decided that it would not be justified allowing exporters to avail IGST refund after initially claiming the benefit of higher drawback. There is no justification for re-opening the issue at this stage,” Rahman read the CBIC circular which was release in October.

He said that in August 2018 also it was clarified to the exporters during a meeting that the issue cannot be reopened at this stage.

Many exporters shared their anguish towards the CBIC order crying that crores of rupees are stuck due to this issue and leading to working capital shortage.

Giving a patient hearing to the exporters on this issue, Rahman asked them to make a representation to the highest authority.

Also, the GST officials answered the queries of exporters related to GST issues that are troubling the exporters.

The officials also requested the exporters to make the use of help desk that has been set up for 100 days just to solve the issues of the taxpayers.

Pankaj Bansal, FISME Treasurer, said, “Exporters are facing significant shrinkage in their working capital under the new system which is restricting their ability to take in new orders. Because of the drawback issue, the exporters have come under huge credit burden and facing enormous fall in their turnover.”

After the meeting, Bansal said the some concerns of the exporters have been addressed but the refund of IGST issue still remains.

He said the exporters, who have formed a forum, will make a representation and submit to the concerned departments for successful resolution of their issues. (KNN Bureau)


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