Tax Refund To Exporters Under GST Within Seven Days: Commerce Minister

The Department of Revenue has promised to refund tax claims of exporters within seven days under the new GST regime, thus addressing a major concern of the sector, Commerce and Industry Minister Nirmala Sitharaman said on Thursday.

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

Exporters have been demanding ab-initio exemption from payment of taxes under the Goods and Services Tax (GST) regime arguing that delay in refunds often takes months and results in blocking the working capital. Sitharaman had recently raised the issues of exporters in the GST Council meeting.

In Thursday’s meeting, the exporters were assured "that on 90 percent of the amount (of refund), within seven days, the refund will be made and if there is an undue delay, interest will be paid on the amount due," Sitharaman said.

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

"GST clearly provides that the taxes must be paid and that the refund will be provided. So since the regime is so structured, in order to see that there is minimum pain to the exporters. The revenue department has committed that 90 percent of the refund will be made within seven days. Delays beyond that would invite interest payment," she said.

She said the remaining 10 percent will be subject to whatever verification revenue department is required to do.

The revenue department will work on the details to ensure that exporters do not suffer because of delay in refund.

Teaotia said exporters will get interest if the refund is delayed beyond two weeks.

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