Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: due date for vat payment :: cpt :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: articles on VAT and GST in India :: form 3cd :: ACCOUNTING STANDARDS :: empanelment :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit
 
 
General »
 Employees may have to bear the GST burden on benefits
 Advance tax payout by top cos grows just 2% in Sept quarter
 Why abolishing personal income tax may not be a good idea
 Questions about the GST cess
 How to prepare for the looming tax-extension deadline
 Income tax: Gratuity for employees raised to Rs 20 lakh; here is how you will benefit
 Haryana to set up scrutiny panel on GST benefits
 Waive certain taxes for companies in insolvency proceeding
 I-T department to appoint 7600 more tax return preparer scheme to cover entire country
 All eyes are on GST as Centre plans higher social pension
 Exporters demand total exemption from GST
 Here's what you must know to stay clear of taxman
 Filing income tax returns is not enough, you need to link Aadhaar with PAN before deadline ends
 
 

Exporters demand total exemption from GST
September, 06th 2017

Exporters have petitioned the government for an outright exemption on payment of goods and services tax, saying that the time it takes to get reimbursements under the current mechanism was causing a working capital crunch.

According to industry claims, about Rs 1.85 lakh crore of working capital will get stuck annually due to the implementation GST. Several exporters said they are already facing a capital shortage and have begun to turn away orders.

Prior to the implementation of GST on July 1, exporters were exempted from paying duties. Now, they have to pay the tax first and then seek a refund, a process that ties up a portion of their working capital and pushes up manufacturing costs as they have to pay duties on inputs. This has particularly hit small exporters, who work on meagre resources and for whom getting bank financing is tough.

Moradabad-based brass handicraft manufacturer and exporter Paragon Metals has Rs 6 lakh of drawback blocked with the government. Proprietor Ajay Kumar Gupta said it might have to lay off artisans and those doing job work if the refund claim is not processed soon.

Similarly, Rajkot-based exporter of bathroom accessories, Valiant Overseas, has stopped shipments for the time being and refused orders worth Rs 1 crore in the past few weeks as Rs 50 lakh of capital is blocked for the past two months, proprietor Kalrav Malaviya said. “We have no idea when we’ll get the refund. As of now, we have said no to five-six clients from Dubai.”

Besides seeking a blanket exemption from payment of GST and a deferred payment on goods not exported, as a likely solution to the problem exporters are also favouring use of e-currency where no physical exchange of money is involved.

Refund mechanism in place
The government has put in place a two-pronged refund mechanism for exporters. They can export by furnishing a bond instead of paying the integrated GST, and claim the refund of unutilised input tax credit. Alternatively, they can export after payment of IGST and then claim the refund.

In the first scenario, exporters get a 90% refund within seven days of acknowledgement of the refund application and the rest in 60 days. In the second, they get 100% refund within 60 days. But many exporters are unsure about the process.

“Working capital needs have increased by 10% due to GST as there was no VAT or excise on our products, and also drawback, which is at present 7.5%, will reduce to half from next month,” said Bhuvan Ahuja, CEO of Ahujasons, an exporter of shawls. Hence, profitability will be affected, too, he explained.

Ahuja said consignments worth Rs 3-4 crore from his company were stuck in the first 10 days of July.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Team

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions