Chandigarh, July 31, Over 60 exporters from Punjab, classified as ‘risky’ by the Central government in June, apprehend that they may lose orders as even after 40 days of issuing circular, branding them as ‘risky’, the government has done nothing to verify their claims.
They claimed that their exports have come to a standstill.
Last month, the government had said in a circular “it has identified 5,106 “risky exporters” across the country so far who seem to have claimed GST refunds based on bogus invoices and they would manually check their claims before issuing refunds.”
On June 17, the Central Board of Indirect Taxes and Customs (CBIC) issued instructions to its Customs and GST formations to verify the correct availment of input tax credit (ITC) by few exporters who are perceived as “risky” on the basis of pre-defined risk parameters.
For these “risky exporters”, it was decided that while exports were allowed immediately, refunds would be released after verification of input tax credit (ITC) within a maximum of 30 days. However, according to the exporters, over 40 days have passed but nothing has been done.
With their working capital blocked in the form of ITC (Input Tax Credit), duty drawback and Integrated Goods and Services Tax (IGST), the exporters have appealed to the Centre to expedite the process if there is any wrongdoing, as it was hampering their exports.
“The message has not gone down well with the industry as the raw material suppliers and shipping lines are of the view that these ‘risky’ exporters have cheated on IGST refunds. Many of the suppliers have stopped supplies and demanding balance payments. However, there is no official communication to these exporters till date, notifying them about any violation of the default for which they have been declared risky,” said Sarvjit Singh, co-convener, Export Promotion Committee, Chamber of Industrial & Commercial Undertakings.
According to the exporters, shipments are getting delayed due to the procedural lapses thereby incurring additional costs in the form of demurrage and detentions. Overseas customers are on the verge of cancelling their orders due to delays.
Due to this, the entire supply chain comprising mostly MSME manufacturers has been blocked with regard to delay in payments and further supplies.
As per the circular, the GST formations were supposed to give a report to the Chief Commissioner of Central Tax within 30 days, specifying clearly whether the amount of IGST paid, claimed or sanctioned as refund was in accordance with the law or not. “Even if there is any iota of doubt, the government must expedite the process so that our precious capital could be released. Since authorities have the data on their portal pertaining to the ITC of each and every exporter, they can verify the facts easily,” said another exporter.
CBIC statistics
5,106 ‘Risky exporters’
60+ In Punjab
Benefits delayed: Input Tax Credit, duty drawback, Integrated Goods and Services Tax
Published On : 01-08-2019
Source : KNN India
