Exporters Worried Rs 65,000 Crore May Get Stuck In Input Tax Credit
Exporters seek refunds based on summarised returns filed by taxpayers.
Exporters told a panel that Rs 65,000 crore could get stuck in input tax credits by December if rules on refunds under Goods and Services Tax are not eased.
In a meeting with the Committee on Exports, headed by Revenue Secretary Hasmukh Adhia to look into problems faced after the rollout of the Goods and Services Tax, exporters sought refunds based on summarised returns filed by taxpayers.
Prior to GST, exporters got refunds of excise duty paid in about three months, PK Shah, former chairman and current board of Engineering Export Promotion Council of India. That’s nearly the same under GSTR2 filing for the purchase of goods and services. But extension of deadline to file returns may extend the wait.
Working capital has been locked up in refunds, exporters told the panel. The industry asked it to consider refunds based on GSTR-3B and GSTR-1 returns already filed by taxpayers, said director general at Federation at Indian Export Organizations.
GSTR-3B are summarised returns for sale and purchase of goods and services, to be filed on 20th of the next month. GSTR-1 are returns for sale of products to be filed by October 10 for the month of July.
The extension in filing GSTR-2 returns has postponed the date to file refund claims, delaying refunds, Sumit Lunker, indirect tax partner at PwC, told BloombergQuint. The last date for filing GSTR-2 for July is October 31.