Exporters can expect to receive some good news after the GST Council meeting scheduled tomorrow. The all-powerful body to look after the indirect tax regime might provide some relief to exporters in terms of faster refunds, as well as GST compliance. This will be the 22nd meeting of the GST Council.
Expectations for some relief for the exporters have risen in light of the fact that the committee, set up under Revenue Secretary Hasmukh Adhia on issues faced by exporters, is likely to submit its preliminary report to the Council tomorrow. Based on that the Council is likely to recommend some relaxation for exporters so that their working capital which is locked up in refunds is released, government sources said.
Also, the CBEC will inform the Council that it is ready to release IGST refunds to exporters from October 10. In a meeting with the Revenue Secretary last month, exporters had expressed their concerns over an estimated amount of Rs 65,000 crore being held up in GST input credit if norms are not modified by December.
Moreover, officials also informed that easy compliance for exporters is expected to be discussed by the GST Council in the meeting tomorrow. In this regard, permission to file GST returns on a quarterly basis instead of every month might be granted.
The government has already allowed exporters to furnish Letter of Undertaking (LUT) instead of bonds at the time of exports, which will help in making GST compliance easier and prevent working capital from being locked up.
The GST Council can even consider start another round of registration for enrolling under the composition scheme, stated a CNBC-TV18 report. The composition scheme allows small taxpayers - those with an annual turnover up to Rs 75 lakh - to pay GST at a fixed rate on a monthly basis.
Another item on the agenda of the full-fledged meeting of GST council might be to evaluate improvements in the functioning of GST Network, the IT backbone of the tax regime. Officials in the government said that the Group of Ministers led by Sushil Modi to look into GSTN glitches will also brief the GST Council on the status of portal's functioning.
(With PTI inputs)