India's exports could take a hit for this month, thanks to the chaos over interpretation of rules under the goods and services tax (GST) for exporters. It is pertinent to note here that merchandise exports account for almost a fifth of the country's GDP.
"The prevailing confusion could slow down exports for the month," the BusinessLine quoted a official source as saying.
The apex body of exporters also voiced concerns on problems being faced. "Consignments are getting stuck as officials are interpreting the custom notification on accepting existing bonds and undertakings from exporters any way they want. They are getting away with it as the Board has not prescribed a timeline under which it has to be accepted," Ajay Sahai, Director General, Federation of Indian Export Organisations (FIEO), told the business daily.
Also read: Fuel, liquor can be brought under GST if states sort out problems, says Modi minister
GST Impact: Auto, banking companies to see muted first quarter performance – Report
Exporters are having a harrowing time due to the interpretation over jurisdictional powers.
"At times officials say that the papers would be accepted by the Assistant Commissioner. At other times they say that they will send it to the Commissioner. The Assistant Commissioner is in one part of the city while the Commissioner is in another. And they may take two days to just transfer the documents," Sahai told the daily, adding, "If this is happening in Delhi, you can imagine what is happening in tier-2, tier-3 cities."
Ironically, the news report filed by BusinessLine comes amid the government assuring the business community that it will "go slow" on enforcement GST rules for six months.
""CBEC (Central Board of Excise and Customs) has enforcement authorities and I have specifically said that the first three to six months are a go-slow.... I don't want small cases to be made," Vanaja Sarna, chairperson of the CBEC," said at a CII event in New Delhi on Wednesday, according to a report by news agency PTI.
She also admitted that the implementation of the indirect tax regime has not been glitch-free and said that the CBEC will issue a fresh series of FAQs to clarify lingering doubts in the minds of various stakeholders.
Meanwhile, out of approximately 80 lakh existing taxpayers, around 70 lakh have signed up for migration to the new indirect regime, Navin Kumar, Chairman, Goods & Services Tax Network (GSTN), said at the CII event in New Delhi.
