Spoken to GST council regarding refunds to MSMEs: Sitharaman

New Delhi, May 20 (KNN) The Commerce Ministry has spoken to the GST council raising the concern of the Micro Small and Medium Enterprises (MSME) exporters' regarding the refunds under the GST, Commerce and industry Minister Nirmala Sitharaman said during a press meet.

Under the GST, the exporters will be getting 90 per cent of the refund within seven days of the completion of the application and the rest 10 per cent would be refunded later, with an added 6 per cent of interest in case it takes time for the refund. This is a concern for the MSMEs as the 10 per cent of amount due with the authority will result in a blockade that will keep piling up.

Earlier the Commerce Minister assured that this will be brought to the notice of the GST council. The Minister informed today that the concern is conveyed and a decision is awaited in the line.

Also the Minister clarified that the 90 per cent of the refund will be initiated from the day of ‘submission of complete application’. She further elaborated that submission of a complete application refers to the stage at which the exporter gets an acknowledgement from the government.

Director General of Foreign trade Ajay Bhalla who was also present at the event informed that it has been decided that the application by an exporter seeking refund will be responded within three days of its submission. The seven day period for the refunds to initiate will be from the day of acknowledgement.

The Minister  was addressing a press conference themed on the completion of the three years of the Narendra Modi led government. (KNN/ DA)