KOLKATA, JANUARY 15: Exporters, who have expressed concern over delay in refunds under GST, are hopeful of a solution to the issue after the Budget. Various export bodies have written to the Union Commerce Ministry seeking faster refunds.
According to Ashok K Basak, Chairman, Plastics Export Promotion Council (PLEXCONCIL), IGST dues (refunds) to the tune of ?6,500 crore are pending over the last four months, while in case of the Chemical and Allied Products Export Promotion Council the dues stand at about ?11,257 crore. The delayed refunds, exporters say, are leading to working capital crunch.
“We have written to the Ministry to ensure faster refunds and given a number of suggestions to ensure that working capital shortfall is met,” Basak said at a press conference here on Monday.
According to TK Bhattacharyya, Executive Director, CAPEXIL, some of the suggestions put forward include channelising refunds through nationalised banks, providing loans against the IGST dues or issuing bank guarantees and letter of undertaking against the due amounts.
“We are hopeful of the Ministry considering these recommendations once the Budget is over,” he added.
Total exports from PLEXCONCIL, CAPEXIL, Basic Chemicals, Cosmetics and Dyes Export Promotion Council (CHEMEXCIL), and Shellac and Forest Export Promotion Council (SHEFEXIL) accounted for $36.85 billion in FY17.
Currently Indian exports account for just 1.8 per cent of the $2,050-billion market (across these categories).
“We are trying to increase the share of Indian exports to 25-30 per cent by 2020,” Bhattacharyya said.
PLEXCONCIL, CAPEXIL, CHEMEXCIL and SHEFEXIL will organise the CAPINDIA from March 22 to 24 to showcase the country’s export potential in areas like chemicals, plastics, construction and mining industries; shellac and forest products.
Source:- Thehindubusinessline.com
