GST will give more credit to exporters: DGFT

NEW DELHI: Director general of foreign trade Ajay Kumar Bhalla on Friday said exporters could end up getting more credit in their accounts once the Goods and Services Tax ( GST) is rolled out.

"Let us transit into a new regime. The foreign trade policy will continue as it is...You will get much more credit in your account," Bhalla told exporters at an outreach event organised by the Federation of Indian Export Organisations here.

Exporters have raised concerns over the long time taken for refund of duties and stated that paying duties first and then seeking refund would result in blockage of working capital with the government. They have demanded ab-initio exemption from paying of taxes.

Allaying their fears, Bhalla said that the practical part of the implementation of GST will be simpler and the problem of blockage of working capital is only a one cycle issue.

GST final refund rules on issuing acknowledgement within three days of filing refund claim and issuance of 90 per cent of claim amount within seven days.

"Many apprehensions are unfounded," he said but added that GST could face teething troubles for three months.

His statement comes a day before the GST Council's meeting to fix rates for key goods like textiles, gold, footwear, beedi and biscuits.