The Damning Effects

The growing pile of pending refunds is slowing down the export sector in India at a time when it should have been riding the big wave of robust trade conditions across the world.

- Mahua Venkatesh

NINE MONTHS AFTER the implementation of Goods & Services Tax (GST), Delhi-based exporter Pankaj Bansal, is in a rather precarious situation. His company TMA International, which exports engineering, electrical goods and metals to countries in the middle-east and Europe and has a turnover of Rs 10 crore, is fast running into a severe cash crunch. Reason? A GST refund of approximately Rs 25 lakh, receivable to him, is pending since a few months.

A few days ago, finally relieved, after the government announced setting up of the “Refund Fortnight”— a facility open to exporters across the country to avail their refunds — from 15-29 March, Bansal visited the Nehru Place (in New Delhi) GST office within a couple of days of its opening to claim his refund. But once again he was disappointed. He was told by the authorities at the office that they were not aware of any such window.

“My experience has been rather painful (after the rollout of GST) and running the business has become a challenge. We will soon be hit by an acute cash crunch. I don’t know how to deal with this situation. We had filed all the required documents and ensured that there was no deficit on the compliance front. What is even more worrisome is the fact that many a times, tax officials are not willing to help us. My hard-earned money is stuck. Though I know I will get it back, the uncertainty is damaging,” says Bansal.

He says though the government has been prompt in paying small-ticket refunds, large-value refunds are stuck.