GST to help exporters in tax refund |
Indian Commerce Minister Nirmala Sitharaman has assured exporters that they would get their refund tax claims within seven days under the new goods and services tax (GST) regime. She also said that the GST Council has been fairly seized of the tax refund issue under the new indirect tax regime, to be rolled out from July 1. On the refund, 90 per cent of the advanced paid money (by exporters in the GST regime) will be refunded within 6 to 10 days, post which an interest of about 6 per cent will be given for any delay by the government to exporters. Sitharaman added that the ministry has asked the GST Council to consider formulating an alternative mechanism for small and medium exporters on the issue of payment of taxes. Exporters have been demanding ab-initio exemption from payment of taxes under the GST regime arguing that delay in refunds often takes months. She said GST will help in improving exports as inputs are going to cost lesser for manufacturing exporters, as it would result in improving the product competitiveness in the global markets. On Rupee fluctuations, she said traders are fairly seized of this, but in case of extreme fluctuations, RBI will intervening just to avert extreme fluctuations. India`s exports grew by about 5 per cent to USD 276 billion in 2016-17.
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