GST reforms: 38,700 exporters to get faster refunds, wider access to input tax credits
Nearly 38,700 export taxpayers will become eligible for cash refunds on input taxes paid on services and plant and machinery under GST reforms. The Council also approved automatic release of 90% of refund claims after risk checks, faster acknowledgements and wider export benefits for service providers and manufacturers.
Nearly 38,700 exporters will now be able to claim refunds on input taxes paid for services and machinery, alleviating concerns over capital being tied up due to the indirect tax system. The GST Council has revamped the refund process, with 90% of claims automatically released following a risk assessment, while the remaining amount is paid after standard verification.
Exporters will now receive their GST refunds in a more expedited manner, with the acknowledgement timeframe shortened from 15 days to just 10. Moreover, exporters who claim duty drawback are now equally eligible for refunds.
This reform has a decidedly export-oriented focus, with the tax system acknowledging this aspect. Revenue Secretary Arvind Shrivastava emphasized this point.
The council has also expanded opportunities for service exporters. They have approved the option to bill through a branch located abroad, enabling an Indian firm serving a foreign client through a branch overseas to claim export benefits. Additionally, testing, repair, certification, and processing of goods belonging to a foreign client carried out in India will now be counted as exports, even if the goods remain in the country.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
