An excess of procedural glitches and faulty filing of claims have meant that exactly eleven months after the Goods and Services Tax (GST) regime was rolled out, exporters across the country are yet to receive an estimated Rs 200 billion worth of tax refunds that have been filed but are stuck with the government.
On Monday, apex exporters body, the Federation of Indian Exports Organizations (FIEO) pointed out that refunds had flown smoothly till March 31, after which the pace has considerably slackened. “While claims over Rs 70 billion were cleared during March, the amount in April fell to a little over Rs 10 billion,” FIEO President Ganesh Kumar Gupta said. Click to read more
With an estimated Rs 20,000 crore exporters’ refund still stuck, the government will launch the second phase of refund fortnight beginning May 31 to fast-track clearances.
“Special Refund Fortnight” to be organised from May 31 to June 14 in which Center and state GST officers will strive to clear all GST refund applications received on or before April 30, 2018,” GST@GoI, which is the official twitter handle for GST related matters, tweeted. Click to read more
The Finance Ministry will start another ‘special drive refund fortnight’ from Thursday to expedite Goods and Services Tax (GST) related refund claims of exporters pending on or before April 30. The drive is going to continue till June 14.
Till now, the government has sanctioned more than Rs 30,000 cr as GST refund, out of which Rs 16,000 cr pertains to Integrated GST (IGST) and the rest being input tax credit (ITC) refund, the finance ministry said on Wednesday. Click to read more
The government has sanctioned Goods and Services Tax refunds worth Rs 30,000 crore to exporters so far in lieu of input tax credit and integrated GST paid by them.
Of the Rs 30,000 crore refunds, Rs 16,000 crore was refund for IGST paid, and Rs 14,000 crore was given as input tax credit to exporters, according to a finance ministry statement issued today. The input tax credit refund includes sanctions by both central and state governments. Click to read more
Pending refunds to exporters under Integrated GST and Input Tax Credit (ITC) heads total ₹20,000 crore, the industry has estimated.
“Many exporters have not been able to file for refund of ITC due to technical glitches as input tax credit and exports happened in different months,” according to the Federation of Indian Export Organisations (Fieo). “The GST refund process has considerably slowed down after the clearance fortnight. Refund of over ₹20,000 crore is still pending on account of IGST and ITC.” Click to read more
In the name of “cooperative federalism”, the Centre is reducing powers of states, Deputy Chief Minister Manish Sisodia said today and claimed that since the GST came into force, the Delhi government cannot even waive tax on a film on its own.
Sisodia, who besides finance, holds art, culture and languages portfolio, made the remarks here at the screening of ‘Life of an Outcast’, a crowd-funded film which highlights the plight of Dalits. Click to read more
Pharmaceutical companies offering buy-one-get-one-free schemes or 20% extra for the same price may have to pay goods and services tax (GST) on the extra quantities, raising prospect of the principle being applied to a broad spectrum of consumer products, said people with knowledge of the matter.
The tax heads of firms such as Novartis IndiaNSE 0.00 %, Sun PharmaNSE -0.99 %, CiplaNSE -0.94 %, LupinNSE -0.24 % have been summoned for meetings with tax officials, they said. Click to read more
Taxpayers’ fear of the enforcement mechanisms under the goods and services tax (GST) seem to be exaggerated. In what showed the tax administration’s pragmatic and non-intrusive approach, the once-dreaded anti-profiteering mechanism hasn’t produced orders with a drastic adverse effect on businesses so far; in fact, the first two National Anti-profiteering Authority (NAA) orders have freed the businesses concerned of the allegations of not passing on the GST benefits by way of lower tax rates and/or input tax credit to consumers. Click to read more
India’s economy probably gained a little momentum in the first three months of 2018 which should ensure that it remains the world’s fastest growing major economy, a Reuters poll found. Gross domestic product expanded an annual 7.3 percent in the first three months of 2018, the May 24-29 poll of 55 economists predicted, a touch faster than the 7.2 percent achieved in the last three months of 2017 — and well above China’s pace of 6.8 percent for the quarter ending in March. Forecasts ranged from 6.9 to 7.7 percent. Click to read more
Indian Private Equity and Venture Capital Association (IVCA), which represents venture capital (VC) and private equity (PE) firms in India, has requested the finance ministry to reduce goods and services tax (GST) on management fee earned by onshore funds. The body has sought reduction of GST rate from 18% at present to 5%, a top official said.
The formal representation was made on 21 May by IVCA representatives, seeking a more benign tax regime for India-based alternate investment funds (AIFs). Click to read more