New Delhi: The government has said Rs 71,169 crore worth GST refunds have been disposed of till date and refuted trade body FIEO’s claim that Rs 22,000 crore is stuck, saying the figure is exaggerated and inaccurate.
The Finance Ministry, in a statement, said refund claims are being cleared expeditiously and asked export bodies to refrain from putting out ‘unsubstantiated’ claims as they cause “needless alarm” amongst the exporters.
The Federation of Indian Export Organisations (FIEO) had earlier this week said Rs 22,000 crore GST refunds are pending with the government, which is creating liquidity problems for exporters.
FIEO said refunds of about Rs 7,000 crore are pending on account of Integrated GST (IGST) and about Rs 15,000 crore due to input tax credit (ITC) as of 30 September. The Finance Ministry termed these figures as “exaggerated and thus inaccurate”.
It clarified that IGST refund worth only Rs 3,065 crore is held up due to deficiency in claims filed, and the quantum of pending ITC refund is only Rs 2,077 crore.
“It is a fact that a large number of exporters have been granted refunds so far while a few claims are still pending owing to deficiencies found in the claims,” it said.
The Ministry said 92.68 per cent (Rs 38,824 crore) of the total IGST refund claims of Rs 41,889 crore have already been disposed. “The remaining claims amounting to Rs 3,065 crores are held up on account of various deficiencies which have been communicated to exporters for remedial action,” it said.
In the case of ITC refund claims with the Centre and States, the pendency as on date is only Rs 2,077 crore, the Ministry said. “Out of the refund claims of Rs 39,372 crore received, provisional/final order has been issued in case of refunds amounting to Rs 32,345 crore. In claims amounting to Rs 4,951 crore, deficiency memos have been issued,” it added.
“Thus, actual pendency is far less than is being put out for the knowledge of the public. The overall disposal of GST refunds is Rs 71,169 crore till date. Refund claims without any deficiency are being cleared expeditiously,” the Ministry said. It said that efforts are being made continuously to clear all the dues on account of pending refund claims.
“Co-operation of the exporter community is solicited to ensure that they exercise due diligence while filing GSTR 1 and GSTR 3B returns as well as Shipping Bills,” the Ministry said and assured the exporting community that all their eligible refund claims will be sanctioned without any delay.
| Collections |
| Revenue collections from the goods and services tax (GST) rose to Rs 94,442 crore in September but is still short of the Rs 1 trillion monthly target set by the government. GST revenues in August were Rs 93,690 crore.
The shortfall in collections will increase the government’s dependence on direct tax collections to meet its fiscal deficit target for 2018-19. A slew of tax rate cuts along with lack of measures to check tax evasion, including invoice matching, have contributed to GST revenues missing the monthly collection targets. The slow pick-up in revenue collections under GST has been a cause of concern for the government, with central tax officials touring states to discover the underlying reasons. In the first six months of 2018-19, monthly GST collections averaged Rs 96,283 crore, a monthly shortfall of around Rs 3,700 crore so far. |