New Delhi, Dec 2 : EEPC India on Wednesday sought easing of GST refund rules to reduce difficulties faced by engineering exporters in the midst of the Covid-19 pandemic.
The engineering exporters body brought out the issue of procedural bottlenecks that have resulted in denial of GST refunds in the absence of flexibility of rules.
In a presentation before the BoT meeting presided over by Commerce and Industry Minister Piyush Goyal, EEPC India Chairman Mahesh Desai said: “We are also facing immense working capital blockage problems due to enactment or operation of ‘Rule 96(10) of the CGST Rules’.”
Under the said rule, exporters are barred from making transactions in specific manner, for availing of the GST refunds under the IGST regime.
“But the same is causing great hardship. More importantly, this provision is causing hindrance to the promotion of exports which cannot be the policy of our government,” said Desai.
“Flexibility in the hands of exporters cannot be taken away on account of procedural issues.”
In other submissions before the BoT, the EEPC India Chairman said the ‘Remission of Duties and Taxes and Exported Products’ (RoDTEP) rate should be announced at the earliest so that it is possible for exporters to factor in the benefits from January 1, 2021.
According to Desai, RodTep of minimum 3 per cent should be given to all engineering products made from iron & steel so that, as and when higher rates are announced, they can have higher RodTep.
As it is, the incidence of duties and taxes is much higher at 7 per cent and above, he said.
On higher cost of borrowing, Desai said banks should charge the “repo rate plus 2.2 per cent” and the same should be notified by the Reserve Bank of India for rupee export credit.
Disclaimer: This story is auto-generated from IANS service.