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Hundreds of MSME exporters taking legal route against govt circular denying their IGST refund

Updated: Nov 16, 2018 06:39:19am
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Hundreds of MSME exporters taking legal route against govt circular denying their IGST refund

New Delhi, Nov 16 (KNN) Large number of exporters from Micro, Small and Medium Enterprises (MSMEs), who have been facing tough time getting back their huge chunk of working capital tied up due to drawback issue in Integrated Goods and Service Tax (IGST), are all set to take a legal route to fight their battle. 

Because of the drawback issue, the exporters have come under huge credit burden and facing enormous fall in their turnover.

Such exporters, hundreds in number, have formed a forum to jointly take their representation to the government.

The forum is planning to submit representation to the government over the Central Board of Indirect Taxes & Custom’s (CBIC’s) circular stating that it would not be justified allowing exporters to avail IGST refund after initially claiming the benefit of higher drawback or even where higher and lower rates of duty drawback were identical.

Talking to KNN India, Sahil Aggarwal, Export Manager, Shri Ganesh Granites, said “GST has made the life of exporters hell. Even survival has become difficult.”

Detailing about his case, he said “For granite, lower rate of duty drawback and higher rate of duty drawback is same and government is saying who has taken the higher rate of duty drawback will not get IGST refund.”

“But in our case (on behalf of other exporters), he claimed that both higher and lower rates are same. So, how can the government deny from paying back our refunds,” he questioned.

The entrepreneur claimed that since the implementation of GST, his turnover has reduced from Rs 40-50 lakh per month to Rs 6-7 lakh per month.

He pointed “The confusion of the columns A and B was not even clear to the custom officers and government is saying that this is the matter of ignorance from exporters’ side.”

Also Read: https://knnindia.co.in/news/newsdetails/msme/over-100-msme-exporters-to-file-petition-over-refused-igst-refund-due-to-technical-glitch

Raising concerns over this matter, another exporter from West Bengal, Subash Kedia, Proprietor of Inter Trade said that at time of GST implementation government said that any mistake during transition period within 3 months will be taken care of and now they have stepped back.

With minor mistake of Column A & B, government is not losing any revenue because percentage is same under both the columns however the exporters are incurring massive losses, he pointed.

“We have taken this matter from top to bottom but government has been turning a deaf ear to our plea,” said exporters.

On getting a zero response from the various departments, Chetan Aggarwal, Co-owner of NK Metal said “We will fight a legal battle against the government to get our refunds back.”

Hundreds of MSME exporters have decided to file a petition in this regard with the High Court. They have estimated that not less than Rs 5000 crores are stuck due to this particular issue.

COMMENTS

  1. Ajay
    Ajay 18/11/2018 5:56 AM

    We company is receiving goods at gst rate of 18%and 28% averaging around 20% since our company major sale is export we are charging 12% and on some product it is 5% average arounr 11% .VALUE ADDITION IS MAXIMUM 30 % WHICH INCKUDE LABOUR WASTEAGE BANK INTEREST ETC.NOW EVERY MONTH EXTRA DUTY IS ADDED .EXCISE REFUND of begore july 2017 are pending .30 % to 50 % capital is blocked .how can some one grow without money

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