In a major relief to exporters, the government has agreed to refund as much as 90 per cent of their duty claims just within a week under the new goods and services tax (GST) regime, commerce and industry minister Nirmala Sitharaman said on Thursday.
The revenue department of the finance ministry has agreed to even offer interest on the refund claim if it’s unduly delayed, Sitharaman said after chairing the meeting of the Council for Trade Development and Promotion in New Delhi. The commerce ministry had been vigorously taking up this issue with the revenue department, so that the concerns of exporters were addressed adequately before the new indirect tax regime kicked in.
Commerce secretary Rita Teaotia also said the revenue department has committed that 90 per cent of the refund will be made within seven days, while the remaining 10 per cent “will be subject to whatever verification the revenue department is required to do”. Under the Goods and Services Tax structure, taxes must be paid and that the refund will be provided.
In a meeting with finance minister Arun Jaitley and others at Goods and Services Tax Council on Tuesday, Sitharaman had stressed there was a need to review the current time-consuming process of refunds claimed by exporters against the duty paid on imports of raw materials or other items under various schemes in the new tax regime. So, refunds against the imports of capital goods under the Export Promotion Capital Goods Authorisation Scheme and those of raw material under the Advance Authorisation Scheme are expected to be processed within a week. (With FE Inputs)