Exporters to get refund within 7 days under GST
The Dollar Business Bureau
Indian exporters get a major relief as their tax claims will be refunded by the government within a week under the proposed Goods and Services Tax (GST) regime.
“Department of Revenue (DoR) to refund 90% of the duty claims of exporters only within seven days under the new GST regime,” said Commerce Minister Nirmala Sitharaman on Thursday.
Exporters would also get interest if the refund is delayed for more than two weeks, she added.
At the Council for Trade Development and Promotion’s meeting on Thursday, exporters were given assurance “that on 90% 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,” the commerce minister said, while briefing the reporters.
Exporters, for long, have been demanding exemptions under GST regime citing reasons that the delay in duty claim refunds often takes months thus resulting in blocking their working capital.
“It is clearly provided in GST that taxes need to be paid and the refund will be given. As the new regime is structured and to ensure that there is less pain to the exporters, DoR has committed that within seven days, 90% of the refund will be made. And delays after that would invite payment of interest,” said Commerce Secretary Rita Teaotia.
“The exporters are satisfied with this assurance,” she added.
On the issue of payment of interest, Teaotia said that DoR detail would decide about details on what would be the amount and how it would kick in after 2 weeks.