The government’s move to simplify the GST regime for exporters has not had the desired impact due to glitches in the process being implemented for merchant exporters.
Several exporters are also complaining of continued difficulty in getting refunds and credits under the new regime, which has made life tougher.
Amonth ago, the GST Council had decided to allow merchant exporters to pay a nominal GST of 0.1 per cent for procuring goods from domestic suppliers for export. But the rules finalised by the Central Board of Excise & Customs are seen to be so cumbersome that it has not benefited these exporters, who complain that their entire margin is wiped out if they pay the product-specific GST.
Similarly, the rules require an exporter to share details of a buyer along with the price at which it has been exported. “This is something that no businessman will share as it is commercially sensitive information,” explained an officer. While officers from revenue and commerce departments have met on this issue, CBEC has failed to address the concerns. Officers met again on Tuesday to find a solution with a revised notification expected soon.