Union government representatives on Thursday met with export promotion organisations to iron out issues surrounding the Goods and Services Tax (GST) refund. Sources say working capital will start flowing before Christmas even as the government and exporters disagree on the extent of capital stuck due to refund issues.
Government sources told CNBC-TV18 that the backlog relating to working capital of exporters is not more than Rs 17,000 crore. They said that the government put in place a mechanism last week to deal with the technical issues relating to refund of input tax credit (ITC).
However, exporters claimed that about Rs 50,000-60,000 crore worth of working capital has been stuck with the inclusion of new products and services under the ambit of GST.
The filing of returns by exporters has increased to 3,000 a day from 900 about a week before.The Centre and the exporters, however, agreed on the need for continued dialogue to clear the bottlenecks pertaining to the working capital issue.