Highlighting issue of liquidity crisis among exporters due to delays in Goods and Services Tax (GST) refund, the Federation of Indian Export Organisations (FIEO) has said that the cash crunch is forcing exporters to turn down new orders and few of them have already refused new orders. The industry body noted that micro, small and medium enterprises (MSMEs) are also cutting their workforce due to liquidity crisis.
FIEO Director General Ajay Sahai pointed out that after the implementation of the new tax regime, many exporters have not received a single rupee. He also highlighted exporters’ feedback reports in which about 80 per cent of the refund is pending and the tax authorities are not accepting the application of input tax credit (ITC).
Sahai further expressed worries over the on-time implementation of e-wallet mechanism, as it is supposed to be introduced from April 01 this year, but still even broad contours of the scheme have not been notified. He also said that so far no consultation has happened with the trade and industry.