Jaitley to discuss GST issues with industry, exporters today

  • Jaitley to discuss GST issues with industry, exporters today

Jaitley to discuss GST issues with industry, exporters today

Many of these exporters have stopped entering into new contracts which will adversely impact exports in next quarter, it explained.

FIEO said that the availability of credit and cost of credit are the biggest challenges for the MSMEs which have become more alarming as money is borrowed for payment of GST on exports.

In the meeting, FIEO also asked for refund of embedded taxes on account of taxation on the products kept out of GST.

The government is facing criticism from the Opposition, particularly the Congress, on the way of implementation of GST.

"For ease of doing business especially for the MSME, provisional input tax credit period may be extended to 6 months from the current 2 months' period; this will help cross matching of invoices through the GSTN portal and also save the blockage of the working capital for the small players", said CII, director general, Chandrajit Banerjee. These instruments earlier gave them exemptions from all Customs duties including CVD, SAD which is replaced by IGST on imports under GST from July 1 when the new tax regime was rolled out. Some have cut their productions also. Besides, it said the absence of adequate knowledge about compliance procedures, continued confusion on levy of tax rates on different items and corresponding HSN code and various compliance formalities under GST have multiplied the problems of the traders.

On the teething problems related to the implementation of GST, he said, one of the issues is reducing the compliance burden for small, medium sectors.

Exporters have sought faster refund of duties, exemption from tax payment for merchant exporters and simpler tax compliance for small exporters from the government. It also asked the government to look into delays in filing of GSTR 3 should be addressed for quick refunds of IGST paid on exports.

Union Finance Minister Arun Jaitley on Thursday defended NDA's economic policies and said the government is making incremental changes in the economy.

Jaitley's meeting with industry representatives comes a day after the BJP's own leader and former inance ministerYashwant Sinha called the GST rollout "badly conceived and poorly implemented".

Institute of Company Secretaries of India (ICSI) Council Member Satwinder Singh said concerns related to reverse charge mechanism and refund were raised in the meeting.