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EEPC India has impressed upon the new Commerce and Industry Minister, Suresh Prabhu, the need to intervene and push for the release of at least 90 per cent of GST refunds to exporters immediately after the shipping bills are filed with the authorities.
EEPC India, the apex organisation for engineering exporters, the largest contributors to the country’s overall exports, points out that while the government has extended the dates for filing July returns for Goods and Services Tax to September 10, 25 and 30 and for August to October 5, 10 and 15, it would mean blocking of GST refunds for exporters.
According to the apex industry body, exporters are hard-pressed for cash and have been significantly disadvantaged by the continuous rise in the value of the rupee against the US dollar.
A ‘back of envelope’ calculation based on July engineering exports suggest that around Rs 1,520 crore worth of GST refunds of the Rs 33,129 crore exports are likely to be held up till the third week of October. If the IGST paid by exporters is added, dues to the exporting community would be in excess of Rs 1,700 crore for July itself, it said.
“Such a dispensation would certainly add to our costs and make our exports uncompetitive,” EEPC India Chairman T.S. Bhasin, said in a statement.
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