“With tax refund, it will create Rs 75,000 crore liquidity for exporters,” Commerce and Industry Minister Piyush Goyal told reporters. This step came after the Prime Minister Narendra ModiThe intervention, he said, stands to benefit 45,000 exporters.
whereas Commerce department And the exporters were pushing for it, Revenue Department did not release funds to clear the dues, resulting in exporters having to borrow or dip in their reserves. The finance ministry seems to have changed its stance after improving cash flows in the wake of a pick-up in economic activity following the deadly second wave of the Covid-19 pandemic.
In fact, even the new tax refund scheme became operational eight months after it was launched.
Though the announcement was made on Thursday, the payment will take time. Goyal Said that exporters will have to file claims on the portal by December 31, i.e. the payment will be made in subsequent months.
Exporters have complained that the refunds and incentives announced by the government should not be stopped just as the authorities do not stop collecting taxes. Furthermore, stagnation is seen to give rise to a system where officials adopt a pick-and-pick policy.
The bulk of the dues, around Rs 33,000 crore, pertain to the Merchandise Exports from India Scheme (MEIS), while Rs 10,000 crore is for the service sectors, which have been hit hardest by the pandemic. Many of the beneficiaries will include travel, tourism and hospitality companies. Another Rs 5,300 crore will be used to refund the duty paid by the garment exporters.
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