SME Times is powered by   
Search News
Just in:   • Market rises for 3rd day straight, Nifty above 9,500  • Sri Lankan brewery resumes exports after 2 months  • Core sector output plunges by over 38% in April  • Galaxy Note 20 may feature Exynos 992 SoC  • Include Discom liability while fixing states' borrowing, Minister tells finance panel 
Last updated: 06 Jan, 2020  

E.Commerce.9.Thmb.jpg Delay in e-wallet scheme unfortunate: FIEO

   Top Stories
» Core sector output plunges by over 38% in April
» GDP growth down to 3.1% in fourth quarter on manufacturing slump
» Need to reform Finance Ministry to facilitate exports, imports: Amitabh Kant
» FDI inflows rise 18% to $73 bn in FY20
» Goyal urges exporters to provide quality products, diversify
SME Times News Bureau | 06 Jan, 2020

Industry body Federation of Indian Export Organisations (FIEO) said on Monday termed it unfortunate that the e-wallet scheme aimed at easing liquidity problem in the wake of GST roll-out in 2017 has not been operationalised yet.

"Unfortunately, the scheme of e-wallet, which was recommended by the GST Council as early as October 6, 2017, which was expected to be put into operation in April 2018 and then deferred to October 2018, has not yet been rolled out," FIEO President Sharad Kumar Saraf said in a statement.

"The scheme may have helped in easing the liquidity problem of exporters," he added.

The e-wallet scheme is basically the creation of electronic e-wallets, which would be credited with notional or virtual currency by the Directorate General of Foreign Trade (DGFT). This notional or virtual currency would be used by the exporters to make GST/IGST payment on goods imported by them so their funds are not blocked.

Saraf, however, admitted that GST has imparted much needed competitiveness to exports.

The statement came in response to reports which, FIEO said, singled out exporters for GST fraud. It noted that painting all exporters with the same brush was unfair and damaging.

The report quoting unnamed Finance Ministry officials said that some of the "star" export houses had fraudulently claimed IGST refunds. The reports said that there were instances where an exporter with over Rs 50 crore exports of readymade garments had taken refund of Rs 3.90 crore while the entity's total GST payment in cash was merely Rs 1,650.

In another case, it was claimed that tax payments in cash had been found as Rs 51,201 while the exporter had obtained refund of Rs 9.59 crore.

The Finance Ministry official also claimed that nine star exporters were not traceable at their addresses. In two cases, the premises were found sealed and seized by the banks as the exporters had been declared as non-performing assets (NPAs).

Reacting to this, the FIEO chief said that exporters have import export code number based on PAN and bank accounts. Further, they have obtained GST registration through KYC cross verifying their email and mobile number.

"The (star) status holders have submitted the CA certificate certifying the specified exports while claiming the coveted status. Due diligence has been done by all the authorities issuing such documents. If an exporter is not found at his registered address, the possibility is that he would have changed his place of business and records may not have been updated," Saraf said.

In what appears a point-by-point rebuttal, FIEO said that there are many instances where actual payment of GST to government is very low as compared to IGST refund since while few goods are subject low GST, many services used by exporters have high GST.

"Therefore, if a merchant exporter has taken goods at 5% and services at 18%, he has sufficient ITC at his credit to pay for 5% IGST at the time of exports. He may not either pay IGST in cash or pay only a fraction of that while claiming complete refund of IGST," it said.

Print the Page
Add to Favorite
Share this on :

Please comment on this story:
Subject :
(Maximum 1500 characters)  Characters left 1500
Your name:

  Customs Exchange Rates
Currency Import Export
US Dollar
UK Pound
Japanese Yen 58.85 56.85
As on 30 May, 2020
  Daily Poll
COVID-19 has directly affected your business
 Can't say
  Commented Stories
» Starting an import export business: Basic guide for beginners(1)
» China's forex reserves reach USD 2.85 trillion(1)
» FM reviews macro-economy in FSDC meet(1)
» Appoint distributors, expand your business(1)
» MSME stimulus(1)
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter