GST: 90% advanced money refunded, alternative tax mechanism for SMEs & MSMEs requested, Sitharaman
The Dollar Business Bureau
"GST will help in improving exports as inputs are going to cost lesser for manufacturing exporters and that would result in improving the product competitiveness in the global markets."
"GST is the big ticket that India batted for. The new taxation policy will help the exporters as the input costs will be lesser under the in-out credit that has been worked out well. This will make a good competition and the exporters are likely to benefit."
The Commerce and Industry minister Nirmala Sitharaman was speaking at a media briefing on three years of initiatives and achievements of the Commerce Ministry in New Delhi on Saturday.
Replying to a query posed by an exporter the minister assured them that they would get their refund tax claims within seven days under the new GST regime.
"The way the GST discussions have happened and the way in which commodities and exports have been treated, it is going to improve exports. On the refund we are very clear that 90% of the advanced money (by exporters in the GST regime) will be refunded within 6 to 10 days, post which an interest of about 6% will be given for any delay by the government to the exporters.”
The Commerce ministry had a special request for the GST Council she said to consider an alternative tax mechanism for small and medium exporters on the issue of payment of taxes." Throwing more light on what the minister spoke, Ajay Kumar Bhalla, DGFT said, “ As far as exports are concerned these are zero rated. Whatever tax is paid, different inputs will be refunded to the exporter. There will be ease of refunds in the whole system. As the whole value chain is linked, it is much easier for them to take the refund in the new system.”
Sounding upbeat about India's export performance though globally there has been a downturn, she said that schemes such as the SEIS and the MEIS have enhanced Indian exports and exporters a great deal.
The country's total exports grew at its fastest pace in five years by 4.7% to $274.65 billion during FY 2016-17 though demonetisation slowed the process showing dismal figures for 18 months.
The Prime Minister's pet project Start up India has proven to be instrumental and has already started to show ripple effect especially for the SMEs she said.
Listing out the various achievements of her ministry in the last three years, especially on the procurement process going online she was appreciative of the DGSD on the GeM portal, which she said has enabled transparency. More than 7000 sellers with 25000 products have come aboard she detailed.
On the issue of the rupee of the becoming stronger, she assuaged the exporters' concerns that the currency fluctuation is the new normal and the RBI and the Min of Finance would intervene if things got out of hand.