Skip to main content

Exporters facing GST refund issues as govt makes invoice matching compulsory for input tax credit



Exporters facing GST refund issues as govt makes invoice matching compulsory for input tax credit  


Many exporters are facing a working capital crunch as they have run into refund problems after a recent government circular said exporters would not be eligible for input tax credit refunds in cases where they are unable to match invoices from the vendors.

 This situation is a result of the government waiving off late fees for companies and suppliers to upload certain forms under the goods and service tax, tax experts said.

 That led to several cases where these forms were not uploaded, and exporters were unable to take input tax credit running into crores.

 As per the GST framework, tax credit cannot be availed until and unless a corresponding invoice is reflected on the government portal.

 Now, exporters are having to deal with queries from tax officials while seeking refunds.

 The government circular specifically mentioned that input tax credit refunds should not be granted on invoices that are not reflected in GSTR-2A—a form that reflects outward supply invoices uploaded by suppliers.

 Now, GSTR 2A is auto-created information based on GSTR 1—a monthly statement of outward supplies of goods or services filed by a company.

 The government has waived late fee for filing forms such as GSTR-1 due to Covid-19 situation. While this was a step in the right direction, due to this the corresponding invoices—which exporters submit to claim refunds—are not reflected in GSTR-2A, experts said.

 Hence, exporters are unable to avail tax credits, they said.
Regards 
Aseem Aggarwal
CA, CPA, CS, B.Com(H)
+91 7508000350
aseem@ksafirm.com


Source: https://economictimes.indiatimes.com/news/economy/foreign-trade/exporters-facing-gst-refund-issues-as-govt-makes-invoice-matching-compulsory-for-input-tax-credit/articleshow/76973872.cms?utm_source=ETTopNews&utm_medium=HPTN&utm_campaign=AL1&utm_conte

Comments

Post a Comment

Popular posts from this blog

Investing in Gold: Bridging Tradition with Modern Strategies in India

Follow us on -  LinkedIn  - https://www.linkedin.com/in/aseem-aggarwal-1b365549/ Youtube  -  https://www.youtube.com/user/aseemaggarwal92 Twitter  -  https://twitter.com/aseem252 Blog  -  https://aseemconsult.blogspot.com/     Gold holds a special place in the hearts of Indians, deeply rooted in tradition and culture. For generations, it has been a symbol of prosperity, a hedge against economic uncertainties, and an integral part of auspicious occasions. As we step into the modern era, the allure of gold remains, but the ways we invest in it have evolved. Let's delve into the world where tradition meets contemporary investment strategies in the context of gold in India. The Timeless Appeal of Gold For centuries, Indians have revered gold not only for its aesthetic appeal but also for its intrinsic value. Traditionally, gold has been acquired in the form of jewelry, coins, or bars, often passed down through generations as a store of wealt...
Post a Comment
Read more

37th GST Council Meeting Highlights

The meeting concluded with several decisions ranging from relaxations in annual return filing, rate revisions, deferment of new GST returns, changes to composition scheme, new GST exemptions and some clarifications detailed as follows: Waiver of GSTR-9A for Composition Taxpayers for FY 2017-18 & FY 2018-19 Composition dealers have been granted exemption from filing of annual returns in GSTR-9A for the fiscal years 2017-18 and 2018-19. In the future, it is mostly expected to be done away since the form GSTR-4 has been tweaked to allow an annual declaration of turnover and tax details. GSTR-9 for small taxpayers now not compulsory for FY 2017-18 & FY 2018-19 Those taxpayers having an annual turnover of up to Rs 2 crore in FY 2017-18 or FY 2018-19, may choose to not file GSTR-9, from the date to be notified by CBIC. GST Council has also decided to review the simplification of GSTR-9, 9A and 9C forms and filing. However, they must continue to file annual returns for FY...
Post a Comment
Read more

GST tribunal will be set up in Haryana, expected to start by March 2023: CM

Follow us on -  LinkedIn  - https://www.linkedin.com/in/aseem-aggarwal-1b365549/ Youtube  -  https://www.youtube.com/user/aseemaggarwal92 Twitter  -  https://twitter.com/aseem252 Blog  -  https://aseemconsult.blogspot.com/     Manohar Lal Khattar also called for promoting voluntary registration for GST and said that three lawyers who get the maximum number of registrations in a year would be felicitated. Haryana Chief Minister Manohar Lal Khattar said Wednesday that for the convenience of taxpayers and lawyers, a GST tribunal will be set up in the state, which is expected to start by March 2023. “For this a recommendation has been made to the GST Council.” The Chief Minister further announced that two joint ETC range appeal offices would be opened at Hisar and Gurgaon to resolve GST related problems. In an event in Gurgaon, Manohar Lal Khattar said that ‘GST Aamne Samne’ forum will be started at the divisional level, providing a common p...
Post a Comment
Read more