Exporter Pain - GST
1) Previously exporters enjoyed upfront tax exemption on goods to be exported. But under GST, we exporters are procuring goods and services on payment of GST. This credit of GST, is supposed to be claimed as refund which is currently not working.
2) In case of procurement from unregistered vendors, the company is required to pay GST under reverse charge which further leads to increase in working capital requirement
3) The refund of GST can be claimed only if the vendors pay GST and this is required to be tracked by the company, which is leading to more hassles for the exporters.
4) Facing challenges in obtaining a Letter of Undertaking for exporting goods without IGST. The said procedure was expected to be online but practically thats not the case. Prior to GST regime, there was no requirement to obtain Letter of Undertaking for exporting services, which is mandatory in GST regime and given this service exporters face numerous challenges.
5) There is no surety on whether the tools or website will work on a particular day as due to traffic surge GSTN system was down multiple times, thus exporters are facing challenges in filing of GST returns more
2) In case of procurement from unregistered vendors, the company is required to pay GST under reverse charge which further leads to increase in working capital requirement
3) The refund of GST can be claimed only if the vendors pay GST and this is required to be tracked by the company, which is leading to more hassles for the exporters.
4) Facing challenges in obtaining a Letter of Undertaking for exporting goods without IGST. The said procedure was expected to be online but practically thats not the case. Prior to GST regime, there was no requirement to obtain Letter of Undertaking for exporting services, which is mandatory in GST regime and given this service exporters face numerous challenges.
5) There is no surety on whether the tools or website will work on a particular day as due to traffic surge GSTN system was down multiple times, thus exporters are facing challenges in filing of GST returns more
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Dear Mr Goenka Its true and the exporters need to take up the issue through various bodies, exporters association, Chambers etc, as this issue must eb addressed amicably soon, as exports is important aspect of the country's growth and GDP Thanks more
Sep 20
Condition has become miserable for free langue technical consultants, even having trunover less than 20 laks. I do not understand whether they do the job or spent time amd money on compliances. There is no clarity at all. Most of such consultants have gone very slow and have decided to not to provide services. more
Sep 21
Upfront payment of IGST before exporting goods is causing a lot of heartburn for us - not just blocking working capital but tension about when, and if at all, this IGST will come back into our bank account. Legal Undertaking route is only for large exporters. Getting Bond against Bank Guarantee again causes blocking of capital, as also bank charges, as also corruption involved in getting these documents accepted by authorities. So overall, exporters are hoping some quick resolution will come from Committee formed under Revenue Secretary Hasmukh Adhia. more
Sep 20
GST Council, Min. of Finance will not be bothered about exporters' ordeal. Pls grin & bear it. What all being implemented are irreversible. M.BALACHANDRAN more
Sep 20
The government should give a tax holiday while it simplifies and fixes all the GST problems to save the country's businesses and tottering economy. more
Sep 20
