The Indian finance ministry has refuted claims by the Federation of Indian Export Organisations (FIEO) that ₹220 billion worth goods and services tax (GST) refunds is stuck, saying the figure is exaggerated and inaccurate as ₹711.69 billion worth such refunds have been disposed off till now. It asked export bodies to refrain from putting out ‘unsubstantiated’ claims.
Refund claims are being cleared expeditiously and such unsubstantiated’ claims are causing ‘needless alarm’ among exporters, the ministry said in a statement.
FIEO had recently said refunds of about ₹70 billion are pending on account of Integrated GST (IGST) and about ₹150 billion due to input tax credit (ITC) as of September 30.
The ministry clarified that IGST refund worth only ₹30.65 billion is held up due to deficiency in claims filed and the quantum of pending ITC refund is only ₹20.77 billion.
The ministry said 92.68 per cent (₹388.24 billion) of the total IGST refund claims of ₹418.89 billion have already been disposed.
"The remaining claims amounting to Rs 30.65 billion are held up on account of various deficiencies which have been communicated to exporters for remedial action," it said.
Efforts are being made continuously to clear all the dues on account of pending refund claims, the ministry added. (DS)
Fibre2Fashion News Desk – India