The e-wallet will address the problems of exporters complaining about delays in refund of taxes under the goods and services tax (GST) regime, according to Indian commerce and industry minister Suresh Prabhu. 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.
Prabhu said the finance ministry has to call on implementing the e-wallet mechanism, a news agency reported. The GST Council in its meeting earlier this month decided to implement the e-wallet scheme for refunds to exporters by October 1.The e-wallet will address the problems of exporters complaining about delays in refund of taxes under the goods and services tax regime, according to Indian commerce and industry minister Suresh Prabhu. 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 say.
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. (DS)
Fibre2Fashion News Desk – India
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