Concerned over delayed refund under Goods and Services Tax (GST) regime, various export bodies have written to the Union Commerce Ministry seeking faster refunds. The delayed refunds, exporters say, are leading to working capital crunch, though they have expressed hope of a solution to the issue after the Budget.
Chairman of the Plastics Export Promotion Council (PLEXCONCIL), Ashok K Basak said that IGST dues (refunds) to the tune of Rs 6,500 crore are pending over the last four months, while in case of the Chemical and Allied Products Export Promotion Council the dues stand at about Rs 11,257 crore. He said that “We have written to the Ministry to ensure faster refunds and given a number of suggestions to ensure that working capital shortfall is met”.
TK Bhattacharyya, Executive Director, CAPEXIL, said that some of the suggestions put forward include channelising refunds through nationalised banks, providing loans against the IGST dues or issuing bank guarantees and letter of undertaking against the due amounts. He added that “We are hopeful of the Ministry considering these recommendations once the Budget is over”. Total exports from PLEXCONCIL, CAPEXIL, Basic Chemicals, Cosmetics and Dyes Export Promotion Council (CHEMEXCIL), and Shellac and Forest Export Promotion Council (SHEFEXIL) accounted for $36.85 billion in FY17.