The exporters and representatives of industry bodies voiced their concerns over the goods and services tax (GST) related issues, including filing tax returns and timely refund of duties, with Union Finance Minister Arun Jaitley. In the meeting, the apex body of exporters, Federation of Indian Export Organisations (FIEO), pushed for exemption from GST for merchant exporters, immediate start of the refund process with exporters facing liquidity issues and allowing export benefit scrips for payment of IGST and CGST.
The industry representatives also brought up compliance matters on which the finance minister invited suggestions to improve the GST implementation. Traders, particularly SMEs, are facing issues in filing returns, which is increasing their compliance burden. Besides, FIEO President Ganesh Gupta has said that the finance minister gave a sympathetic hearing to their concerns and assured all possible help. He also said that small exporters are particularly hit with new tax regime as they have to borrow money to pay GST and availability and the cost of credit is adversely impacting them. He added that the government should consider introduction of e-wallet for exporters.
Further, Gems and Jewellery Export Promotion Council Chairman Praveenshankar Pandya has said that the sector is facing problems as exports are declining after the GST rollout. He also said that small businesses are getting impacted more and some have cut their productions. Adding further, he said that they have raised the issue of compliance and also demanded exemption from IGST on procurement of precious metals from nominated agencies for the purpose of manufacturing and export of jewellery. He added the finance minister would tabulate their demands to put that before the GST Council.