From Financialexpress · FE Bureau · · 1m 20s
GST Council to ease export refunds and credits
GST Council may simplify export refunds and unlock working capital for Indian exporters.
In brief
GST Council may simplify export refunds and unlock working capital for Indian exporters. The GST Council plans to update export refund rules to help exporters recover taxes faster and access more credit amid global trade challenges. Originally reported by Financialexpress.
GST Council meets for export relief
The GST Council will consider changes to help exporters claim refunds faster and unlock working capital by aligning tax rules with global operations.
Exporters face refund delays
Exporters struggle with slow tax refunds and limited credit due to trade disruptions, wars, and shifting supply chains.
Foreign branches qualify as exports
Transactions through indian companies' foreign branches may now qualify as exports, removing hurdles related to legal structure.
US tariff refund system
The us system allows companies to recover tariffs through their overseas entities, a model india may adopt for faster refunds.
Export payments and sez transactions
Goods sent to special economic zones for processing may now qualify as exports if payment is received in foreign exchange.
Plant and machinery tax refunds
Tax paid on plant and machinery may now be refunded over five years to help exporters access working capital.
Faster refund processing
Export refunds could be processed within 10 days, with 90% released after a risk check and the rest after verification.
At a glance
The GST Council plans to update export refund rules to help exporters recover taxes faster and access more credit amid global trade challenges.
