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Engineering exporters seek easier GST refund rules at BoT meet
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SME Times News Bureau | 02 Dec, 2020
EEPC India on Wednesday sought easing of GST refund rules to reduce
difficulties faced by engineering exporters in the midst of the Covid-19
pandemic.
The engineering exporters body brought out the issue
of procedural bottlenecks that have resulted in denial of GST refunds in
the absence of flexibility of rules.
In a presentation before
the BoT meeting presided over by Commerce and Industry Minister Piyush
Goyal, EEPC India Chairman Mahesh Desai said: "We are also facing
immense working capital blockage problems due to enactment or operation
of 'Rule 96(10) of the CGST Rules'."
Under the said rule,
exporters are barred from making transactions in specific manner, for
availing of the GST refunds under the IGST regime.
"But the same
is causing great hardship. More importantly, this provision is causing
hindrance to the promotion of exports which cannot be the policy of our
government," said Desai.
"Flexibility in the hands of exporters cannot be taken away on account of procedural issues."
In
other submissions before the BoT, the EEPC India Chairman said the
'Remission of Duties and Taxes and Exported Products' (RoDTEP) rate
should be announced at the earliest so that it is possible for exporters
to factor in the benefits from January 1, 2021.
According to
Desai, RodTep of minimum 3 per cent should be given to all engineering
products made from iron & steel so that, as and when higher rates
are announced, they can have higher RodTep.
As it is, the incidence of duties and taxes is much higher at 7 per cent and above, he said.
On
higher cost of borrowing, Desai said banks should charge the "repo rate
plus 2.2 per cent" and the same should be notified by the Reserve Bank
of India for rupee export credit.
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