Globalization has been majorly hit with the ongoing crisis; the businesses involved in international trade are facing liquidity issues. Refund against exports is one of the sensitive aspects, when the financial well being of businesses is directly proportional to liquidity ratios.
In her article for Taxsutra, Tejus Pathak remarks there can be no better time than today for the Government to re-look and re-cast a few of the larger issues which plague the entire process of refund of GST on exports. Discussing the recent amendment in Rule 89 w.r.t. the definition of “Turnover of zero-rated supply of goods”, the author points out “new norm seems to be problematic on various counts…..”. The author further observes that,“in these times when the valuation of any exports is going to be highly volatile and would largely be market-driven than by individualistic choices, the amendment will be a big hurdle”.
Highlighting the recent circular which states that refund of accumulated ITC shall be restricted to as reflected in Form GSTR-2A of the claimant i.e. ‘Matched ITC’, the author opines that the refund circular, doesn’t seem to be in sync with the concern of the exporters, although this restriction qua matching of ITC equally hits them as to their domestic counterparts.
Enunciating about the new Rule 96B inserted in CGST rules which states timeframe for realization of proceeds in order to get refunds, the author further lays down various other procedural issues of concern which need urgent redressal for smooth processing of refunds.
The author concludes by stating, “in any event, streamlining the entire process of export is the need of the hour to which the Government seems sympathetic to. They just need to walk an extra mile”.