Delay in GST refunds hurt small exporters: FIEO President

Raising concern over the issue of slow Goods and Services Tax (GST) refunds, Federation of Indian Export Organisations (FIEO) President Ganesh Gupta has said the delay in refund is mainly impacting small exporters who provide jobs in labour-intensive sectors.

FIEO President made an uproar about pending refunds of Rs 22,000 crore, noting that this is creating liquidity problem for exporters and impacting overseas shipments. He further claimed that refunds of about Rs 7,000 crore are pending on account of integrated GST (IGST) and about Rs 15,000 crore input tax credit (ITC) as of September 30.

Gupta also mentioned that though the refund process has improved in the last six months, the refund can only be claimed after manufacturing of goods and exports with a lead time of about 3-9 months depending on the production cycle. He further pitched for exemption from GST on inputs required for export production to provide necessary competitiveness to exports. The FIEO President also highlighted immediate concern of the export sector with regard to flow of credit from the banking sector, as getting renewal of limits is taking abnormal time with huge documentation requirement.