January 06, 2017

Tax Refund Of Exporters Within Seven Days Under The New GST Regime

Nirmala Sitharaman

Commerce and Industry Minister Nirmala Sitharaman showed a major concern of the sector, the Department of Revenue, who has promised to refund tax claims of exporters within seven days under the new GST regime.

The exporters would get interest on the refund if it is delayed beyond two weeks, the minister added. Exporters have been demanding ab-initio exemption from payment of taxes under the Goods and Services Tax (GST) regime arguing that delay in refunds often takes months and also results in blocking the working capital. They also stated that exports need to be encouraged in view of the global slowdown. The minister recently raised the issues of exporters in the GST Council meeting.

In meeting, the exporters were assured “that on 90 per cent of the amount (of refund), within seven days, the refund will be made and if there is an undue delay, interest will be paid on the amount due,” Sitharaman said.

“The Department of Commerce has been taking up this matter with the Department of Revenue (DoR)”, Commerce Secretary Rita Teaotia said while elaborating on the issue.

Rita Teaotia further added that "GST clearly provides that the taxes must be paid and that the refund will be provided. So since the regime is so structured, in order to see that there is minimum pain to the exporters, what the DoR has committed that 90 per cent of the refund will be made within seven days. Delays beyond that would invite interest payment."

The Commerce and Industry Ministry has recently suggested to the GST Council to exempt leather and plantations sector from the GST ambit.

Related Post

latest News

  • Director files copyright infringement lawsuit against upcoming film 'Mission Mangal'

    Radha Bharadwaj, a woman director, recently filed a copyright infringement against an upcoming film "Mission Mangal" at the Bombay High Court, allegin...

    Read More
  • SC Asks Centre To Give Another Chance To "Genuine People To Deposit Old Notes"

    On July 4, the Supreme Court rapped the Centre and asked it to give another chance to "genuine people to deposit old notes."

    Read More
  • CCI slaps Rs 15 million fine on Monsanto

    The Competition Commission of India (CCI) had fined US seeds company, Monsanto, Rs 15 million for delay in filing replies during a probe ordered by th...

    Read More