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Last updated: 24 Apr, 2018  

gst-thmb.jpg Delay in dealing with GST refund delays

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Bikky Khosla | 24 Apr, 2018

Commerce Minister Suresh Prabhu last week promised to address the problem of delayed refunds faced by exporters under the Goods and Services Tax (GST) regime and take up the issue with the Finance Ministry. In a meeting with industry representatives, the minister admitted that GST refund is a major issue for the sector and stressed on the need of a concrete plan to address the challenge. The assurance came in the background of claims by exporters that over 60 percent of their refunds are still stuck with the government.

A recent study report by the RBI, 'Working Capital constraints and exports: Evidence from the GST roll-out' shows how a short term liquidity shock could impact firms in the export sector, which are generally believed to be financially sound. This is reflected in the exports growth number in October 2017, which declined to -1.2% (year-on-year), the report mentions. However, according to government claim, corrective measures taken in October have alleviated the distress, but exporters view that little has changed on the ground level.

Official data shows that the Centre has sanctioned GST refunds worth about Rs 12,700 crore. This amounts to 80 percent of the eligible claims of exporters, but these figures hardly reflect the graveness of the problem as they do not take into account the claims where returns have been filed wrongly. According to exporters, the real percentage is much lower as many exporters have filed GSTR 3 erroneously. Additionally, the GST authority collects data from the Customs department and sorts it out manually and this tedious process further delays the refunds.

Over the last few months, exporters have raised the concern over GST refund delays time and again. Several industry bodies have requested the government to come out with a solution. But the Government's response has remained tame and the problem has refused to go away. This situation needs to be reversed. Our exports growth in 2017-18 is not that encouraging, particularly in the light of revival of global demand. Additionally, the trade war between the US and China may further impact us. So, time is now to take care of the sector.

I invite your opinions.

 
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We too
R.Rajani kanth | Sat Apr 28 09:58:24 2018
We are exporters and finding it difficult to cope up to get refunds .Please suggest the methodology.


GST Refund delays
SJS RAVI | Thu Apr 26 20:51:06 2018
It is strange that the Govt creates more and more hurdles for all types of businesses. If exports tank, the balance pf payments will be much worse, especially since the crude bill is likely to rise astronomically soon. The two businesses with low tech and high labour participation, in which India had a good edge are already at the receiving end of Govt. actions. In response to noises from the textile industry on GST, the finance minister said that these people have got used to not paying any taxes. In the meanwhile other countries are stealing a march on us in textile exports. Notable among these are Vietnam, Cambodia, Bangladesh. In a recent visit to a US clothing store for children, I found hundreds of pieces from Vietnam, Cambodia, Bangladesh, China and a few even from Myanmar. After a lot of scouring I found only two from India which also might be old stock. If we are not exporting to US are we exporting Gambia, Zambia? Our Govt. does not understand business, only Taxes on everything under the sun. The business of export is treated very seriously by most third world countries. We perhaps think that we are no more third world, which is an error. Even the high tech software is entirely dependent on all imported hardware and a lot of software. China can choke us any time by shutting a few taps. Being in such a vulnerable position, it is unthinkable that the Govt still engages in disruptions. Exports is our national interest. It cannot be made hostage to such minions.


GST REFUND ON EXPORTS
R S MISHRA | Thu Apr 26 02:55:57 2018
THERE SHOULD BE NO GST PAID FOR EXPORT. WHY TAKING VIA MEDIA ROUTE OF FIRST PAYING AND WAITING FOR REFUND


NON REFUND OF GST TO EXPORTERS BY GST COUNCIL
RISHABH KUMAR JAIN | Wed Apr 25 16:30:40 2018
I am an exporter since 1998 & now planning to shut down my export house because my net profit margins are hardly around 10-12% while I am paying GST @ 18 % so this way there are sevaral lacs of export houses which are soon going to shut down because of non refund or just partial refund by the GST council.India is actually a ridiculous country for businessmen with reckless & red tapisim in the Govt Departments.Our last hope is Honourable Sh Narendra ModiJi who is executing e-governance & making things digital.The corrupt GST officers still have a point to ask for the proof of exports like self attested shipping bill copy, Self attested Bill of lading, Bank of statement & Bank advise as the proof of exports & its payment received.Why in GST Portal, there is no option for uploading these documents ???????? SIMPLY BECAUSE WHEN EXPORTERS OR THEIR CHARTERED ACCOUNTANTS WILL HAVE TO MEET PERSONALLY THE GST OFFICER, THEN HE MAY BE ABLE TO ASK FOR HIS BRIBE WHICH IS USUALLY SOMEWHERE AROUND 7 TO 10 % OF THE REFUND CLAIMED AMOUNT.WHEN AN EXPORTER IS PRODUCING THE EBRC IN FRONT OF THE CORRUPT GST OFFICER THEN WHY THE CORRUPT GST OFFICER ASKS FOR THE FURTHER DOCUMENTS WHILE EBRC IS THE FINAL & DGFT'S(GOVT OF INDIA)CONCLUSIVE DOCUMENT FOR THE PROOF OF EXPORT & ITS PAYMENT. THIS IS ALL I HAVE TO SAY THAT THERE IS NO USE OF DOING EXPORT TRADE IN THIS COUNTRY(INDIA) WHERE THE PROFIT MARGINS IN TODAY'S COMPETITIVE INTERNATIONAL MARKET ARE VERY THIN WHILE THERE IS NO HOPE OF GST REFUND.


DELAY IN GST REFUND TO EXPORTERS
RISHABH KUMAR JAIN | Wed Apr 25 16:23:15 2018
I am an exporter since 1998 & now planning to shut down my export house because my net profit margins are hardly around 10-12% while I am paying GST @ 18% so this way there are several lacs of export houses which are soon going to shut down because of non refund or just partial refund by the GST council.India is actually a ridiculous country for businessmen with reckless & red tapisim in the Govt Departments.Our last hope is Honourable Sh Narendra ModiJi who is executing e-governance & making things digital.The corrupt GST officers still have a point to ask for the proof of exports like self attested shipping bill copy, Self attested Bill of lading, Bank of statement & Bank advise as the proof of exports & its payment received.Why in GST Portal, there is no option for uploading these documents ???????? SIMPLY BECAUSE WHEN EXPORTERS OR THEIR CHARTERED ACCOUNTANTS WILL HAVE TO MEET PERSONALLY THE GST OFFICER, THEN HE MAY BE ABLE TO ASK FOR HIS BRIBE WHICH IS USUALLY SOMEWHERE AROUND 7 TO 10 % OF THE REFUND CLAIMED AMOUNT.WHEN AN EXPORTER IS PRODUCING THE EBRC IN FRONT OF THE CORRUPT GST OFFICER THEN WHY THE CORRUPT GST OFFICER ASKS FOR THE FURTHER DOCUMENTS WHILE E BRC IS THE FINAL & DGFT'S(GOVT OF INDIA)CONCLUSIVE DOCUMENT FOR THE PROOF OF EXPORT & ITS PAYMENT. THIS IS ALL I HAVE TO SAY THAT THERE IS NO USE OF DOING EXPORT TRADE IN THIS COUNTRY(INDIA) WHERE THE PROFIT MARGINS IN TODAY'S COMPETITIVE INTERNATIONAL MARKET ARE VERY THIN WHILE THERE IS NO HOPE OF GST REFUND


Accumulation of GST in Local Aluminium Recyling Units due to Higher Assessment of Imports by Customs
Jayant Jain | Wed Apr 25 15:27:04 2018
We are an Association of Non Ferrous Metals Recyclers, Importers, Manufacturers, Traders etc in India. ANMA is working for Protection and Promotion of Trade Since 2000. Majority of Aluminium Recycling units are SMES and MSME which Provides Employment To 1.50 Lacs People all over India. After Implementation of GST in India, Aluminium Recycling Business is facing heavy Accumulation of GST . This is because the Majority of the Raw Material of this Industry is Imported and Custom Over Value the Imports based on DGOV Formula . This leads to Overvaluation of around 20 To 40% At Port . Whereas Value Addition is hardly 10% . Thus due to higher Inout GST and Lower Output GST , it is Accumulating . Also there is no Provision in GST Law for Refund of Same. We and our other Association MRAI had met Finance Minister , MOS Finance , Revenue Secretary , DGOV , CBEC Chair Person and other to help us in solving this Problem. But nothing had been done. The Working Capital of SME and MSME in our Sector is getting Blocked every day due to this . If the Problem is not solved then it will leads to NPAS in Span of 2 to 3 Years. Our Demand is as under : 1. Assessment of Aluminium Scrap At Transaction Value by Customs 2. Reduction of GST on Aluminium Scrap from 18% to 12% so that the Accumulated GST can be used . Pls help us in this matter.


About GST Export refund
selva venkatesh | Wed Apr 25 15:24:26 2018
I am a very small exporter,Ater GST my business was totally blocked My export refund value is around 10 lakhs so my capital was blocked more than seven months This seven months we are waiting for the refund but finally we are getting tired. I am not happy with this government they spoil my business and destroyed my goodwill in the market . But government and GST officers are very causally replying you will receive , they don't no our working capital was blocked


Export Refund
Aijaz Khan | Wed Apr 25 08:51:48 2018
The issue is correctly explained. We have filed for 5 months refund and not a single refund is processed. For 1st three month, they cited erroneous 3b filing error and rejected. For further months, no update yet. Ground work still not upto the mark.


Delay in dealing with GST refund delays
Rajeev Kejriwal | Wed Apr 25 07:47:56 2018
External Business (EXPORT) & Internal Business (DOMESTIC) goes hands in hands for any country. Currently, both the sectors are facing huge amount of issues which needs to be looked seriously by any Central Government. In my personal view, this can only be possible when Concerned authorities leave their "SAB VYAPARI CHOR HAI" attitude & agree that "YES ! THERE'S ISSUES IN OUR POLICIES & WORKING PATTERN and WE NEED TO FIND APPROPRIATE SOLUTION". Otherwise whatever Government says or do, nothing going to make strong impact. Even sanction of funds will, in such cases, not reach traders on time. And we all know that any kind of delay in refunds have huge negative impact on CASH FLOW & finally on BUSINESS. With trade war within India & outside India, its high time that Government freeze out some policies that not only protect us but encourage us to retain our second generation in India & facilitate them into business.


GSTR2
Rohit Jain | Wed Apr 25 06:24:13 2018
Being an error with GST claims, now, we have advised to take refund when GSTR2 will be implemented. hence, when it will be?


GST Refunds - A Nightmare
S Mathur | Wed Apr 25 05:30:56 2018
I completely agree with what is stated in your article. As a Small Entrepreneur, a 100% EOU, the impact on our already stretched cashflows is near fatal. Our claims for refund of Aug'17 GST on zero-rated supplies (exports), submitted in Dec'17, sanctioned on Feb 22, 2018, was received on Apr 21, 2018. Thereafter claims from Sept'18 to Nov'18, are yet to even be processed. Due to this, additional submissions are being discouraged by the authority. The amount runs close to Rs.75L presently and is growing by a few lakhs every week. How do we sustain? Apart from this ofocurse is the difference in rate - all inputs @ 18% and sale @ 12% causing perennial shortfall. Earlier, 100% EOUs were granted the option to procure duty-free domestically with CT-3 Forms which was eliminated under the GST regime. This is a seriously retrograde step causing immense trouble. Ofcourse, added to all this is the concerned department's constant endeavour to blatantly "cash-in" on such "opportunities" arising out of the pain of their subjects, adding salt to the wounds already inflicted on these helpless folks, who by the way, are generating employment for hundreds of individuals despite all these odds. A classic case of dismal implementation of a supposedly good policy at the last mile. A sad state of affairs, indeed!


refund
Percy | Wed Apr 25 05:28:39 2018
GSt wants to control all businesses thru Balance sheet and PL account to be uploaded on GST portal but with another name and in tabular form, some information like port , update of shipping bill nos, EGM by shipping companies on Customs website are hidden under bag full of words to confuse, initially there should be only in real time Invoice matching only and leave all other form for big corporations whose turnover are in C'rs


Refunding of excess ITC paid
HC Muniraj | Wed Apr 25 03:06:16 2018
Due to errors made while filing GSTR-3B, we find Rs.5,04,000/- credit balance in Credit ledger. There is a provision TYpe of Refund for claiming Refund from Cash Ledger, but same is not available for Credit Ledger. No other reason Type of Refund is applicable in our case for claiming refund from Credit Ledger.


No GST On Export
Vishnu Arora | Wed Apr 25 02:21:24 2018
There should not be GST/IGST on Exports. When we have to receive it after many months means our capital block. Either Government Pay Bank Interest as Bank Charges On Packing Credit for delayed period or stop charging GST/IGST from Exporters.


Sub: penalty for very small scale industries and start up companies - reg
D.Mohanapriya | Wed Apr 25 01:38:19 2018
Dear sir , i have invoice in december month and paid 1924/- in april for that put penalty around 7000/- . how we can run factory .kindly reduce the penalty amount without any agitation .then only save small copanies ,otherwise very difficult to run industry. remodeling the penalty structure for 1 or 2 bill for total month .consider my email and do the needful. expecting your early reply in this regard. Thanks regards vatijet industries


 
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