The Revenue Secretary, Hansmukh Adhia, informed that the GST refunds of exporters shall be cleared by the Government by November-end and no taxes shall be levied on exporters for upcoming 6 months as the Council has decided to revert to the pre-GST era. Mr. Hansmukh said to PTI in an interview that Rs.67,000 crore of IGST has been accumulated over July-August of which Rs.5,000-10,000 crore only shall be due as refunds to exporters.
It is also said that an e-wallet service shall be launched, when no taxes has to be paid on goods to be exported, so as to give exporters notional credits that can be used to pay GST. However, the said credit in the wallet shall be transferable.
To ease their problems, the GST Council on Friday decided a package for them that includes extending the Advance Authorization / Export Promotion Capital Goods (EPCG) / 100 per cent EOU (Export-Oriented Unit) schemes to sourcing inputs from abroad as well as domestic suppliers till March 31, thus not requiring to pay IGST. “For a period of six months we are actually reverting back to the pre-GST scenario (where manufacturing exporters or those who manufacture goods for exports did not pay any tax). So, they have no reason for any complain now,” Hansmukh said.
Sources –The Hindu – Business Line
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