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Indian economy has recovered from the impact of demonetisation, GST: World Bank

Indian economy has recovered from the impact of demonetisation, GST: World Bank

As per the World Bank South Asia Economic Focus Spring 2018 report, World Bankthe Indian economy has recovered from the impact of demonetisation and the introduction of the Goods and Services Tax (GST)  regime and is projected to grow by 7.3 percent in 2018 and 7.5 percent in 2019.

India’s growth is expected to drive South Asia’s growth rate to 6.9 percent in 2018 and 7.1 percent in 2019.

The South Asia Region in this World Bank report includes Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.

Key Highlights of World Bank Report:

• Yet again, South Asia is the fastest growing region in the world and the rebound was led by India, whose growth rate accelerated in the second half of 2017.

• The region experienced the increase in inflation, however, this rise in inflation aligned with other regions. Besides, the inflation rates of most countries in the region remain near or below inflation targets.

• The trade deficits of the three biggest South Asian countries have widened.

• Around 80 percent of the South Asia region’s Gross Domestic Product (GDP) is generated in India.

• The manufacturing sector showcased signs of recovery in the last quarter of 2017 with the industrial production growing by 4 percent in the region.

• The increase in inflation in South Asia was majorly driven by accelerating monthly price increases in India in recent months. Inflation in India increased from 1.5 percent in June 2017 to 3.6 percent in October 2017, to 5.1 percent in January 2018 and to 4.4 percent in February 2018.

• Despite firm global recovery, exports remained relatively dull throughout the region, while imports grew rapidly. Export growth has been positive in India, Sri Lanka and Pakistan. However, the overall export growth in the region was lower than overall economic growth.

• Foreign direct investment (FDI), despite being unstable in the short-term, has been on an upward trend across the whole of South Asia. Both India and Sri Lanka saw their FDI increasing very strongly.

• The entire region experiences the job creation challenge. The low employment rates in South Asia are attributed to less female participation in the region in comparison with the other regions. In India and Pakistan, the gap between the actual and predicted employment rate is close to 30 percentage points.

India’s recovery from the impact of demonetization and GST

India’s growth decelerated during the most of 2016. The withdrawal of currency from circulation (demonetisation) in November 2016 and the introduction of the Goods and Services Tax regime added to the slowdown in the economy.

Both these economic measures created short-term disruptions in economic activity. Considering the increase in inflation rate and fall in real interest rates, India instilled major changes to boost Indian economy including a recapitalization plan for banks. Subsequently, the growth rate bounced back to 7.3 percent.

Job Creation Challenge in India

Despite economic rebound, job creation remains a matter of concern in India. India has been tasked to create 8.1 million jobs each year to maintain its employment rate; however, the rate has been declining largely due to less women participation in the job market.

Women were dropping out of the job market in areas between rural and urban regions, where farming jobs had vanished, but other job opportunities had not been created yet.

XaTTaX: Your automated E-Way bill compliance is just a click away!

Source :  Jagranjosh
A step-by step Guide for filing GST TRAN 2 Form

A step-by step Guide for filing GST TRAN 2 Form

GST TRAN 2 can be filed only if TRAN-1 and GSTR 3B of the relevant tax period is filed.

GST Tran 2 Form

Step1 – Navigate to the TRAN 2 page of the desired tax period after logging in, Select the < Financial Year> and < Month>

Step2 – Table 4 of GST TRAN 2 would be enabled if records were declared in Table-7(a) (7B) of TRAN 1 and Table 5 would be enabled if records were declared in Table-7(d) of TRAN 1.

Step3 – Enter details of opening stock in Table 4 and Table 5 as declared in GST TRAN 1. Please ensure that all the HSN/goods are declared in GST TRAN 2, in the opening balance in the month of July, 2017, irrespective of the fact that these have been sold or not in the first i.e. July, 2017 tax period.

Step4 – Declare the details of sold goods from such stock in the first tax period and the Central/State and integrated tax paid on those goods and compute the ITC allowed and state this value in the applicable tables. ITC allowed should be less than or equal to (=) 60% of Central Tax or 30% of Integrated Tax.

Step5 – While filing Tran 2 of subsequent tax periods, the tax payer has to only declare the details of goods supplied/sold and the tax paid and ITC allowed. The opening stock gets auto-populated from the earlier tax period closing stock. And the closing sock is auto computed from the opening stock and the supplied quantity in the tax period.

Step6 – Save after entering each record in tables of GST TRAN 2.

Step7 – After entering all the records click “Preview” to download the pdf with draft summary values of GST TRAN 2. Verify the correctness of the entered data. If satisfied click “Submit” to freeze your declaration. Please verify thoroughly before submitting.

Step8 – Download the summary of your submitted TRAN 2 for your record by clicking on “Preview” again.

Step9 – Click on file with DSC or EVC and select the authorized signatory to file TRAN 2 for the tax period.

Step10 – After successful filing the message and email with the ARN number will be sent to the taxpayer.

Step11- The claimed ITC of central and state tax would be reflected in the ITC ledger of the taxpayer after filing of TRAN 2. It has to be noted that the ledger entries get posted after filing of TRAN 2 and not “Submit” (as is/was the case in TRAN 1).

GSTN has prepared system for 75 lakh GST e-way bills daily: Prakash Kumar

GSTN has prepared system for 75 lakh GST e-way bills daily: Prakash Kumar

Prakash-kumar-Eway Bill

Goods and services tax network (GSTN), the information technology backbone of the new indirect tax regime, completes five years on 28 March. In an interview, Prakash Kumar, its chief executive officer, talks about the challenges GSTN faces, the criticism it has encountered for technological glitches, the steps it has taken to protect taxpayer information as well as ensure a successful GST e-way bill rollout from 1 April.

How challenging has the task of creating the tax network for GST been?

It has been quite challenging. The company was incorporated in 2013 and the initial years were spent in staffing and hiring the technology provider. Though we picked Infosys in 2015, the work started in earnest only after the draft GST law was released in June 2016. We prepared all our systems based on this draft law. But in March 2017, the laws were modified in a big way. That was a big setback for us. We had to reorient a lot of things and make a lot of changes. We had initially designed one registration form for all taxpayers irrespective of whether they are composition dealers or inter-state dealers. But now we have separate forms. Similar was the case for return forms where major changes were made quite late. This forced us to release the forms in a phased manner.

The GST Council is again considering changing the return forms. Do you think this time around it will be a smooth process?

We have suggested to the government that we should be given sufficient time to develop, test and then make them available to everyone. This will ensure that when they start using the system, there will be no surprises. I hope this happens. It is the entire ecosystem which has to make the changes including the accountant software companies, GSPs (GST suvidha providers) and the taxpayers. They also have to be given time.

What are the key learnings? 

We knew that for any software development, one has to give sufficient time between the development process and implementation. But unfortunately, we had time pressure. Because the Constitution was amended, the government had to bring in GST before September 2017.

Ideally, the GST laws should have been brought in earlier. But one has to appreciate that the centre and the states were abdicating their taxation rights. So it was bound to take time.

GSTN’s ownership structure—the fact that it is a private sector entity—has also been questioned…

I do not think it is a issue. We have got the flexibility to hire people with technical expertise at market salaries. We bring in neutrality as well as the expertise to handle this kind of a big information technology project.

Are there enough safeguards to protect confidentiality of data?

None of us in GSTN has access to any individual data. The data is seen by only two people—the person who uploads the data and the tax officer who has jurisdiction over the taxpayer. The database is in an encrypted form. All data mining is done at a collective level. The database administrator does not have full access to all data pertaining to a taxpayer. If he has access to registration information, he will not have access to any other data.

Are you prepared for the rollout of the GST e-way bill the second time around?

We have made a lot of changes. NIC (National Informatics Centre) has upgraded the infrastructure. We have tested the system for the number of e-way bills that can be generated. We have prepared the system for 75 lakh e-way bills daily as against 26 lakh before. We have also decided to first start with inter-state e-way bills from 1 April and then move to intra-state later. You cannot estimate intra-state volumes. So that is why we have sought a staggered rollout for intra-state bringing in only 4-5 states in one go.


Finance Ministry to simplify GST profiteering complaint form

Finance Ministry to simplify GST profiteering complaint form

Finance Ministry to simplify GST profiteering complaint form

The Finance Ministry has simplified and reduced the number of columns in the complaint form to make it easier for consumers to report any profiteering activity by businesses post GST rollout.

The number of columns in the simplified single-page form have been slashed to 16, of which 12 fields are mandatory, to make it convenient for people.

The original profiteering complaint form, though a single page document, had about 44 columns seeking a number of details and half of those fields were mandatory.

In the new form the applicant has to give his name and address and contact details along with proof of identity. Besides, the name and address of the supplier too are to be provided.

Besides, the applicant has to state any goods or service for which the application is being filed as well as state the price value per unit and the MRP pre and post GST.

The applicant has to enclose evidence like copies of invoice or price list to prove that the benefit of tax rate reduction or benefit of input tax credit has not been passed on to consumers.

The move to simplify the form followed numerous representations received by the standing committee red flagging the complicated nature of the form.

Till January, as many as 170 complaints have been filed before the standing committee and the screening committee by consumers against businesses for not passing on benefits of tax rate reduction since the implementation of the Goods and Services Tax (GST) from July 1.

XaTTaX: Your automated E-Way bill compliance is just a click away!

While simplifying the form, it was kept in mind that a common man should be able to apply without the help of an accountant.

In the earlier form, the consumer has to specify the actual price or value charged per unit pre-GST and the same post GST. Also, the total tax per unit and the reduction in tax amount post GST has to be filled up by the complainant.

Details of pre-GST rates of excise duty, VAT, service tax, luxury tax charged by the businesses against whom the profiteering complaint is being lodged was also required to be filled up in the earlier form.

Self-attested copies of all documentary evidences like proof of identity, invoice, price list and detailed working sheet were required to be submitted while filing up the earlier form.

Also read: GST E-Way Bill – key pointers that you need to know

As per the structure of the anti-profiteering mechanism in the GST regime, complaints of local nature are first sent to the state-level screening committee while those of national level are marked for the Standing Committee.

If the complaints have merit, the respective committees refer the cases for further investigation to the Directorate General of Safeguards (DGS).

Once DGS submits its report, it is scrutinised by the Anti-Profiteering Authority for further action, which may include fine and extreme penalty like cancellation of registration.

15th Finance Commission Asked To Provide Plan For GST Compensation To States

15th Finance Commission Asked To Provide Plan For GST Compensation To States

The 15th Finance Commission, in its first interaction with the parliamentarians, was on Wednesday asked to come up with a roadmap for compensation of losses to states due to implementation of the Goods and Services Tax (GST).

GST council

The parliamentarians also asked the panel to review the status of implementation of the recommendations of the 14th Finance Commission and have a relook at the processes and methods to consider the backwardness of a state.

“Parliamentarians appreciated the inclusion of Sustainable Development Goals (SDGs), disaster management, climate change, progress made in sanitation, solid waste management and bringing in behavioural change to end open defecation among others,” an official statement said.

The meeting assumes significance as the 15th Finance Commission has to work in a different economic scenario since the Planning Commission has been scrapped and the distinction between plan and non-plan grants has also been done away with.

Also read: Small biz yet to recover from demonetisation, GST: Report

The panel will start consultations with states from April kicking off its state level visits with Arunachal Pradesh.

It plans to finish the state-level visits by the end of the fiscal year.

“Since some states will be having assembly elections, visits will be arranged according to that.

“During state visits, the Commission, apart from meeting state leadership and government officials, will also meet various political parties, local bodies and other bodies,” the statement said.

XaTTaX: Your automated E-Way bill compliance is just a click away!

Source :  NDTV
Small biz yet to recover from demonetisation, GST: Report

Small biz yet to recover from demonetisation, GST: Report


Even as the economy has largely recovered from the shocks of demonetisation and GST implementation, micro enterprises with borrowings of under Rs 10 lakh are yet to fully recover, a report said today.

“Micro, small and medium enterprises (MSMEs) with exposures from Rs 10 lakh to Rs 10 crore have recovered to pre-demonetisation levels, (but) the segment with exposure of less than Rs 10 lakh has still not recovered to that extent,” the report by Transunion Cibil and Sidbi said.

It can be noted that the uptick in growth, wherein the GDP expansion accelerated to a 7.2 per cent, had led many watchers to say that the worries of the twin reform measures are behind the economy.

The report reiterated that the situation has improved in all segments except those with borrowings less than Rs 50 lakh, where the systemic exposure has not caught up with pre-demonetisation levels.

Further, the overall exposure of the formal financial system to the MSME sector was at Rs 11.75 lakh crore of the total credit outstanding of almost Rs 100 lakh crore. Only 5 million of the the over 50 million MSMEs have accessed formal finance system for credit.

The note ban and GST, have however, upped the formalisation of the economy which is seen in an increase in new to credit MSMEs at 4 lakh units in the second half of 2017, as against over 2.7 lakh in the year-ago period.

On the critical factor of non-performing assets, the report said impaired assets in MSMEs have been “range bound”, but the proportion of stress increases with the quantum of exposure, which means NPAs among smaller enterprises are lower as compared to the bigger ones.

The micro enterprises having borrowings of less than Rs 1 crore had an NPA of 8.8 per cent in December 2017 versus 9.2 per cent in the year-ago period.

Also read: GST E-Way Bill – key pointers that you need to know

The report said while there has been a 20 per cent jump in exposure to the under Rs 1 crore borrower segment for the year till December 2017 as against an overall 3.2 per cent for the MSME segment as a whole, the exposure to firms borrowing under Rs 10 lakh has been a faster 31 per cent.

“There is a structural opportunity in the MSME segment, which is both profitable as well as impactful,” Sidbis chairman and managing Mohammed Mustafa told reporters.

While senior officials from the credit information admitted that some of the growth is due to mandatory requirements like priority sector lending, they also pointed out to a larger play by the private sector lenders who are expanding their market share.

Cibils managing director and chief executive said the smaller businesses represent a similar opportunity as the one held by retail lending over a decade ago and are bound to grow.

The state-run development finance institution and the leading credit information company have tied up to launch such reports on the sector on a quarterly basis to understand the progress and suggest policy interventions.

Mustafa said the report points out to lower coverage in states like Uttar Pradesh and Bihar, and added that such enterprises need to be brought under the formal financial system fold.

Ease Your GST Filing & Invoice with XaTTaX GST Software

Source :  Money Control
GST: What happens if person files return but doesn’t make payment of taxes?

GST: What happens if person files return but doesn’t make payment of taxes?

GST File return

I understand that the applicability of GST on reverse charge basis has been suspended. In this scenario, I want to know if the notification is also applicable on import of services for which we are paying GST on reverse charge basis?

In case of import of services, the integrated tax is payable under Section 5(3) of the Integrated Goods and Service Tax Act, 2017 (IGST Act). The liability to pay GST under reverse charge has only been deferred in respect of transactions falling under Section 5(4) of the IGST Act, which only covers procurements made from suppliers not registered under GST law. Accordingly, import of services shall continue to be liable to Integrated Tax under reverse charge mechanism.

Who can opt for the composition scheme? Is liability to pay taxes under reverse charge mechanism covered under the composite scheme?

The GST law provides an option to a supplier of goods, having an annual aggregate turnover not exceeding Rs 10 million, to opt for payment of GST under Composition Scheme. A similar option has also been provided to a person engaged in the supply of food/beverages (other than alcohol). However, this option is not available for other service providers. This option is also not available if the supplier is engaged in undertaking inter-state supplies.The GST payable under reverse charge mechanism is not covered under the composition scheme. If a person registered under composition scheme procures any goods/services on which GST is payable under reverse charge mechanism, the person shall be required to pay GST at applicable rate and not based on rates prescribed under composition scheme.

What happens if the taxable person files the return under the GST law but does not make payment of taxes?

Under the GST law, the filing of return without payment of taxes shall not be considered as a valid return. Section 2(117) defines a valid return. It means, a return furnished under sub-section (1) of Section 39 on which self-assessed tax has been paid in full. It is only the valid return that would be used for allowing input tax credit (ITC) to the recipient. In other words, unless the supplier has paid the entire self-assessed tax and filed his return and the recipient has filed his return, the ITC of the recipient would not be confirmed.

Will there be any GST implication on goods returned under the GST regime which were sold before July 1, 2017?

The GST law contains specific transitional provisions regarding goods sold under the pre-GST regime which are returned by the recipient on or after July 1, 2017.

If the buyer is not registered under the GST law, the seller shall be eligible to claim a refund of the taxes/duties paid under the pre-GST regime. However, the refund is permissible only if the goods were sold not before six months from July 1, 2017, and are also returned within six months after July 1, 2017.If the buyer is registered under GST law, such goods returned by him after July 1, 2017, shall be deemed as a separate supply transaction. In such a case, the buyer shall be required to issue a tax invoice and charge the applicable GST.

Also read: GST return simplification to end traders’ woes likely before March 31

Is the supply of software treated as a supply of goods or supply of services under the GST law?

The GST law provides that transactions concerning development, design, programming, customisation, adaptation, upgradation, enhancement, implementation of information technology software shall be treated as the supply of services. Accordingly, the supply of software shall be treated as the supply of services.

We are engaged in supplying exempt goods to special economic zones (SEZ). Can we still claim input tax credit in respect of such supplies?

On account of a specific provision under GST law, supplies to SEZ are treated as zero-rated supply. Such provision also specifically provides that even if such supply is exempt from tax, input tax credit shall be allowed in respect of such supplies. Therefore, you should be eligible to claim input tax credit of GST paid by you on procurements of eligible goods and services even if the goods supplied by you to the SEZ unit are exempt from GST.

Ease Your GST Filing & Invoice – with XaTTaX GST Software

Source: Business Standard 

About Writer: Rahul Kant associate director at PwC
Filing GSTR-1 return using XaTTaX GST Software

Filing GSTR-1 return using XaTTaX GST Software

GSTR-1 Filing through XaTTaX GST Software

With GST filing around the corner, it becomes necessary for you to understand how to file your GSTR-1 return with simple steps using our state-of-the-art GST filing and reconciliation solution – XaTTaX.

  What is GSTR-1 return?

 GSTR-1 return needs to be filed by all individuals, who are registered under GST. The taxpayer needs to provide details of the outward returns (sales), upload and file the invoices with GSTN. The due date to file this return is 10th October 2017.

What do you need to report in your GSTR-1 return?

 As outlined earlier, GSTR-1 is a sales return and every tax payer has to mandatorily report the following set of information in this return:

  • Invoice summary that includes invoice types, credit notes and advance receipts
  • Summary of documents issued
  • Summary of HSN/SAC
  • Details of the turnover, which should be provided only once.

Now, let’s understand the procedure for filing the GSTR-1 return using XaTTaX:

  1. Login to XaTTaX as an accountant.

XaTTaX GST Software Login Page

Figure 1

  1. From the Home page, select the GSTIN that you want to access to direct you to the Dashboard.

Note: You can switch between different GSTINs from a single legal entity.

  1. In the Dashboard, you can view the analytics pertaining to various returns such as GSTR-1, GSTR-2, apart from other useful information such as list of activities, returns dates and XaTTaX updates.

XaTTaX GST Software Dashboard

Figure 2

  1. In the GSTR 1 – DATA IMPORT screen (appears when you click GSTR 1 -> Import in the left section), click Browse to choose the desired file and then click Import to import the GSTR-1 data in Tally or XaTTaX format (excel).

XaTTaX GST Software Dashboard GSTR 1

Figure 3

  1. Click Classify to classify the invoices into various categories such as B2B, B2C, etc and then click Submit for Approval.

 The invoices get routed to the manager for approval.

XaTTaX GST Software GSTR 1 Outward Transaction

Figure 4

  1. Once the manager approves the invoices, you can proceed to save, submit and file the GSTR-1 returns with GSTN.

This ends the process of filing the GSTR-1 return using XaTTaX, which is quite simple and ensures 100% security.

Also read: How to File GSTR 3B in Details and download GSTR 3B- Format.

XaTTaX: Cloud and On-Premises Based GST Filing Software For India

Impact of Goods and Services Tax (GST) on Union Budget 2018-19

Impact of Goods and Services Tax (GST) on Union Budget 2018-19

Impact of Goods and Services Tax (GST) on Union Budget 2018-19

Budget 2018-19 is the first Union Budget after the implementation of GST in July 2017. After the implementation most provisions of the Goods and Services Tax (GST) were tweaked and tax rates of numerous products were reduced in subsequent GST council meets which resulted in a sharp decline in government’s tax collection figures.GST replaced more than a dozen indirect taxes; these indirect taxes together formed a bulk of the government’s earnings. Service tax alone accounted for more than 14% of the government’s revenue in the last Budget in 2017. Thus fall is GST collection is a major cause for concern for the FM.Finance Minister Arun Jaitley who is also the GST Council Chief has stated that Budget 2018 will provide further opportunity for him to address issues related to GST and also to further tweak the GST rates. Almost every sector desires a rate cut in the GST rates but probably only a few of these expectations will be met on the budget day given the precarious fiscal situation that the FM has to deal with.

Effect of GST on Union Budget of India
One of effects of the GST on the union budget of India is that, now that the various indirect taxes are gone the manoeuvring space for the FM has reduced substantially. Before GST implementation in the Budget all the changes in the indirect taxes were contained in the Part B of the Budget that dealt with tax proposals. But now any decision regarding changes in GST rates is taken by the GST Council. Thus other than changes in the basic custom duties which are outside the purview of GST no big bang changes in the GST tax regime is expected. The FM is his Budget 2018 may state about foreseen changes but won’t be able to implement concrete changes through the Budget itself. Another effect of the GST on the Union Budget would be because after the implementation of GST the government’s revenue has been steadily declining which puts further pressure on an already strained fiscal deficit target of the government. Along with need for enhance public spending in various sector, the fall in GST collection throws up a difficult situation for the FM to tackle in the Budget 2018.

Challenges related to GST in Budget 2018
The most significant GST related challenge for the FM is to tackle falling GST revenues. The GST collections have been consistently going South since September. This is majorly due to cut in GST rates on many products and because of small businesses opting to file returns on a quarterly basis instead of initially proposed monthly returns. If the current trend continues the GST collection of the government would be below collection of indirect taxes in the pre-GST era, this will be a big jolt to the fiscal consolidation agenda of the Government. Thus the biggest GST related challenge before the FM is to improve GST collection through better compliance, technology and other means. Another challenge for the FM is to expand the GST base thus we could see some movement on this front too in the Budget 2018. Government may incentivise and offer concessions and rebates to honest tax payers and make evading GST more difficult. GST when introduced was supposed to be a user friendly tax regime hence further steps to simplify the GST system is also expected. The Budget 2018 may also be used to iron out some issues that are plaguing the GST regime such as export refunds that are stuck with GST department, technological bottlenecks and more.
Also read: 25th GST Council Meet:Rates revised for 29 goods, 53 services, says Arun Jaitley

GST related decisions expected in the Budget 2018
The major GST related decisions that may be unveiled in the Budget 2018 are bringing of the real estate sector under the purview of GST along with diesel, natural gas and gasoline. Although the FM cannot reduce the GST rates of the products in the Budget but he can announce the intention of reducing GST rates on products such as electric vehicles, agriculture related products used by farmers and others.  One of the GST related expectation from the Budget is that the limit of the composition scheme of GST which is currently 15 Lakhs can be increased to 30 Lakhs. Other GST related decisions on clarity of taxation on e-wallets, centralised registration for banks, insurance companies and financial institutions and also ending of certain restrictions on input tax credit is expected. A decision on single stage return filing by consolidating the three key return forms GSTR1, GSTR2 and GSTR3 to minimize compliance burden on small and medium businesses may also find mention in the FM’s speech on the that day.

Ease Your GST Filing & Invoice with XaTTaX GST Software


Source: Business Standard
‘GST changes game for tax evaders’: Finance secretary

‘GST changes game for tax evaders’: Finance secretary

‘GST changes game for tax evaders’: Finance secretary

Finance secretary Hasmukh Adhia said on Tuesday that goods and services tax (GST) will “change the game” for those who avoid to paying taxes. “When GST was introduced it was hailed as a gamechanging tax reform. Do you know what is game changing? It is an innovation which can spoil the games people were playing to avoid paying taxes,” Adhia told a gathering of exporters, while delivering his speech in Hindi. The rollout of GST has been seen as a measure to plug loopholes and ensure that businesses across the country start paying taxes. Using high-end return filing and matching system, the new tax regime makes it tough for tax evaders. Introduction of GST is also seen as the government’s overall strategy to nab evaders.

Adhia, who has played a key role in the implementation of the new tax reform measure, explained in detail to exporters how it will benefit them. “Leave aside the transition problems. I want to assure you that in the long term it (GST) will benefit exports.”

The finance secretary explained the reason behind delay of refund for exporters and how the government had responded swiftly to address the problem. He said wrong filing of returns along with technological problems had delayed the process.

Adhia also elaborated the benefit of GST for exporters. “Earlier some states would give VAT refunds after two-to-three years, some would never give. Plus there was no credit for 5% octroi if you were in Mumbai. Under the GST system being put in place to file one application, get one refund order and get one refund. This will ease life and will boost exports.”

He said once the system stabilises, exporters will get refund for Integrated GST (IGST) as soon as they file for it. Adhia said the government has devised a manual cum automatic way of filing refund. “This is an online system. Printout has to be submitted to jurisdictional officer.”

Commerce and industry minister Suresh Prabhu said introduction of the new tax regime “would be the catalyst for spurring growth in the export sector. Lower duty on most of the items and reduction of cascading effect of various duties would lower the cost and make exports competitive”.

Source :  The Times of India