Finance Ministry Refutes FIEO’s Claims, Says Rs 71,169 Crore GST Refunds Cleared
The FIEO said that Rs 22,000 crore GST refunds were pending with the government, thus creating liquidity problems for exporters.
The government today said that Rs 71,169 crore worth of Goods and Service Tax refunds have been disposed till date and refuted the trade body Federation of Indian Export Organisations claim that Rs 22,000 crore were stuck. The ministry called the figure as exaggerated and inaccurate.
The Finance Ministry, in a statement, said that the refund claims are being cleared expeditiously and asked export bodies to refrain from putting out "unsubstantiated" claims as they cause "needless alarm" among the exporters.
The FIEO had earlier this week said that Rs 22,000 crore GST refunds were pending with the government, which is creating liquidity problems for exporters. They said that refunds of about Rs 7,000 crore were pending on account of Integrated GST, and about Rs 15,000 crore due to input tax credit as of Sept. 30.
The ministry clarified that IGST refund worth only Rs 3,065 crore was held up due to deficiency in claims filed and the quantum of pending input tax credit refund is only Rs 2,077 crore.
"It is a fact that a large number of exporters have been granted refunds so far while a few claims are still pending owing to deficiencies found in the claims," it said.
The ministry said 92.68 percent, or Rs 38,824 crore of the total IGST refund claims of Rs 41,889 crore have already been disposed. "The remaining claims amounting to Rs 3,065 crores are held up on account of various deficiencies which have been communicated to exporters for remedial action," it said.
"Out of the refund claims of Rs 39,372 crore received, provisional/final order has been issued in case of refunds amounting to Rs 32,345 crore. In claims amounting to Rs 4,951 crore, deficiency memos have been issued," it added.
"Thus, actual pendency is far less than is being put out for the knowledge of the public. The overall disposal of GST refunds is Rs 71,169 crore till date. Refund claims without any deficiency are being cleared expeditiously," the ministry said. It said that efforts were being made to clear all the dues on account of pending refund claims.
"Co-operation of the exporter community is solicited to ensure that they exercise due diligence while filing GSTR 1 and GSTR 3B returns as well as Shipping Bills," the ministry said and assured the exporting community that all their eligible refund claims will be sanctioned without any delay.