Taxation

How the mirage of GST refunds has left exporters in dire straits

Even almost a year after its rollout, GST continues to create heartburn for exporters. They simply aren’t getting their tax refunds.
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22 Jun 2018 0 comment
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Textile traders in Kolkata striking in protest against GST in 2017; Debajyoti Chakraborty/NurPhoto via Getty Images
It all started on July 1, 2017, as the government rolled out the goods and services tax (GST). Things were supposed to be simple and seamless with not too many taxes — at least that’s how the story was sold. Firms exporting goods from India were told to pay GST on the products they exported and later claim a refund. They also in the value of exports across the spectrum. The worst hit industries are textiles, apparel, and gems and jewellery. But then, these sectors are highly unorganised and have always had a bad track record of tax and regulatory compliance. This leaves us with another unanswered question: Where will the GST mess leave the government’s war cry — Make in India?
It all started on July 1, 2017, as the government rolled out the goods and services tax (GST). Things were supposed to be simple and seamless with not too many taxes — at least that’s how the story was sold. Firms exporting goods from India were told to pay GST on the products they exported and later claim a refund. They also in the value of exports across the spectrum. The worst hit industries are textiles, apparel, and gems and jewellery. But then, these sectors are highly unorganised and have always had a bad track record of tax and regulatory compliance. This leaves us with another unanswered question: Where will the GST mess leave the government’s war cry — Make in India?

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