Textiles, leather, tea, electronics and plastic fall
roughly in the 35-45 per cent range, while engineering
goods have a higher ratio of 47 per cent; coffee,
tobacco, ceramics and ores and minerals are in the 50-55
per cent range. It is disturbing that glitches have
persisted for so long. The biggest inconvenience of all
for exporters is that they still have to apply offline
for IGST and ITC refunds at their nearest tax office,
after entering the refund due to them online.
This is a software lapse. Since IGST issues need to be
referred to the Centre, offline applications take time
to be processed.
Besides, delays arise when Customs officials point to
discrepancies between the Export General Manifest and
shipping bills. This is because the IGST amount may not
be mentioned in the former, as the exporter may not be
required to do so. Delays in processing of claims are
also on account of inputting errors such as the wrong
bill number or amounts being entered.
Here, too, the software does not easily allow for
corrections. These issues must be settled urgently. That
the GST process, according to Economic Survey 2017-18,
has increased the number of unique indirect tax payers
by 3.4 million is remarkable, but in doing so businesses
should not be pushed to the wall.
Small businesses, which account for a major part of the
export universe, are being made to invest a
disproportionate amount of time, money and resources on
GST compliance. The filing of summary returns on a
monthly basis, with more detailed returns being filed on
a half-yearly or annual basis, would help businesses
breathe more easily.
The persistence of red tapism in the exports sector does
not sit well with the Centre’s otherwise well-earned
reputation of having generally eased the conduct of
business.
Acknowledging the role of small units, the Survey
observes that “India’s exports are unusual in that the
largest firms account for a much smaller share of
exports than in other comparable countries”. The Centre
must address the concerns of small units quickly.