India’s Central Board of Indirect Taxes and Customs (CBIC) recently allayed fears due to a perceived setback to the automated refunds process for exporters under goods and services tax (GST) due to the introduction of manual checks to curb frauds in integrated GST refunds.

Media reports create a misleading impression that genuine exporters would suffer, it said. 

CBIC recently instructed its customs and GST formations to verify the correct availment of input tax credit (ITC) by a few ‘risky’ exporters. Only 5,106 risky exporters have been identified so far as against about 1.42 lakh total exporters. Thus the risky exporters are only 3.5 per cent of the total exporters, CBIC said in a press release. 

The intervention is negligible and even for the ‘risky’ exporters, exports are allowed immediately. However, the refund would be released after verification of ITC within a maximum of 30 days. 

The new verification exercise is aimed at preventing unscrupulous exporters from defrauding the exchequer and bringing a bad name to the larger exporting community. CBIC assured genuine exporters that they would continue to get their IGST refunds in a timely manner in a fully automated environment. 

 Published On : 27-06-2019

Source : Fibre 2 Fashion