Indian commerce and industry minister, Suresh Prabhu recently said that the e-wallet will solve the exporters problems about delays in refund of taxes under the goods and services tax (GST) regime. The GST Council in its meeting earlier this month decided to implement the e-wallet scheme for refunds to exporters by October 1.
Under the mechanism, a notional credit would be transferred to exporters’ accounts based on past record and the credit can be used to pay taxes on inputs.
Exporters complain delay in refund of taxes is blocking their working capital and impacting shipments. About Rs 20,000 crore is stuck on account of such delay, they said. However, the revenue department sees discrepancies in the forms submitted by exporters with the customs department and those with the GST network.
The Central Board of Excise and Customs (CBEC) recently launched ‘GST refund fortnight’ to quickly sanction pending refunds to exporters.
– Apparel and Textile News, Apparel Talk, Indian Apparel
