Finance Ministry to refund Rs 600 crore to exporters in a few days

NEW DELHI: The finance ministry has decided to refund Rs 600 crore of taxes to exporters in the next few days to help them tide over problems on account of GST implementation, a government official said today.

The ministry is also working on a scheme for refund of taxes for exporters.

"Rs 600 crore will be refunded in the next few days. Going forward, refunds will be given in three days. A new scheme for exporters will be placed before the GST Council on October 6," the official said.

The refund scheme will be such that it is legally tenable and financially viable, the official added.

The move assumes significance as Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai has said that if refund does not start flowing immediately, then about Rs 60,000-65,000 crore would be stuck by the end of October.

FIEO has time and again stated that exporters are facing liquidity problems due to the implementation of the Goods and Services Tax (GST).

Earlier they used to get ab-initio exemption on indirect taxes. But now under the GST regime, they have to pay first and then seek refund, which is a time consuming and cumbersome process.