Commerce Department to Fix Exporters’ GST Woes

By: Admin July 17, 2024 Categories: GST Recent News

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The Commerce Department has decided to address the GST-related problems faced by exporters, including compliance issues, refunds, and audits, by taking up these concerns with the GST Council and the Finance Ministry, sources have said.

Exporters have been complaining about receiving show-cause notices from GST authorities to pay GST on overseas bank charges, along with interest and penalty, despite the GST Council agreeing that it should be paid by Indian banks.

Key Highlights:

• Compliance and Refund Issues: The Commerce Department plans to gather inputs from various export bodies regarding their GST-related grievances. These inputs will be collated, analyzed, and presented to the GST Council and the Finance Ministry for action.
• Show-Cause Notices: Exporters have been receiving notices for non-payment of GST on overseas bank charges. The GST Council had decided in June 2022 that GST on such charges should be paid by Indian banks. Exporters’ body FIEO has urged the Finance Minister to direct the CBIC to clarify this to GST authorities to stop these notices.
• Extension of EGM Filing Period: Due to the Red Sea crisis and shipping delays, exporters are struggling to meet the 90-day time limit for EGM filing for merchant exporters who procure goods at a concessional 0.1% GST rate. Exporters are requesting an extension of this period by an additional 60-90 days.

The Commerce Department’s proactive approach aims to ensure the speedy redressal of exporters’ grievances, fostering a more supportive environment for the exporting community.

Hashtags: #GST #Exporters #CommerceDepartment #TaxCompliance #GSTCouncil #FinanceMinistry #RedSeaCrisis #ExportChallenges #FIEO #TradeSupport