New Delhi, Nov 9 (KNN) Industry body Associated Chambers of Commerce and Industry of India (Assocham) in a representation has urged the GST Council and the government to help the exporters to get tax refunds at the earliest and ease the rules and obligations under the GST regime for exporters.

The Associated Chambers of Commerce and Industry of India (Assocham) in a statement said that the growth in exports has been picked up which must be maintained by making the goods competitive but its pertinent to ensure that the exporters remain fully funded and do not face any working capital shortage.

According to Assocham the tax refunds have been stuck either due to delay in processing or the litigations relating to eligibility/ procedural aspects for refund claim.

Assocham noted that the according to the section 16 of the Integrated GST Act, the exporters have an option not to pay any IGST on the exports and can claim refund of the GST paid on procurement of inputs but no refund is available for GST paid on the capital goods .

Since, there is no output GST liability, exporters have been facing blockage of credit of GST paid on capital goods.

Assocham also noted that during the pre-GST regime, there was a provision to pay excise duty/ service tax on the procurements with the Merchandise Exports from India Scheme (MEIS) and Service Exports from India Scheme (SEIS) scrips but with GST implementation  the MIES and SEIS scrips can be used only for making payment of the basic customs duty which has hampered the  finances of exporters. (KNN/AG)