Extend refund deadline for 'risky exporters' to 90 days: Inc

The issue of Integrated Goods and Services Tax (IGST) refunds of risky exporters has once again started simmering, this time due to the guidelines issued by Central Board of Indirect Taxes and Customs (CBIC) on November 28.

According to the guidelines, the jurisdictional officer will now have to dispose of the refund application of risky exporters within 60 days.

Giving more information, renowned tax expert N K Thaman said, "In a relief to genuine exporters who come under the 'risky exporter' category, the refund of IGST of these risky exporters will now be sent to a jurisdictional officer for sanctioning it. This procedure has also been made applicable to past cases where the exporter was identified as risky, which could not be processed due to pending verification or receipt of negative report."

He informed that the process has been fast-tracked.

Thaman added, "The jurisdictional officer will ascertain genuineness of the exporter and pass a detailed order for refund claims. The officer has to dispose of refund within 60 days of receipt of refund application from the system, which earlier took months, and sometimes, even years."

But, he informed, if a detailed investigation could not be conducted within 60 days, the officer can still withhold the refund under the new process.

Tax experts and businessmen have hence demanded that the maximum time limit should be revised to 90 days in case of refunds which have a high value, so the officer could get ample time to study those applications.

Vinod Thapar, Chairman of Apparel Technology and Common Facilitation Centre (ATFC) said, "The CBIC has made a positive move by fixing the time frame for processing the refunds of risky exporters. But we are of the view that 60 days time limit is very less for processing the refunds which are of a very high amount. The CBIC should revise the time limit to 90 days in case of refunds of more than Rs 5 crore so that the jurisdictional officer has ample time to study the case file and take justified decision regarding the refund application."

Categorising some exporters as 'risky exporter' had also irked the industry.

According to Rohit Gupta, president of Importer Exporter Club, Punjab, "Issue of exporters being put in the risky exporter category is bothering the businessmen from quite some time now.

"We are happy that some relief has been given by the CBIC to us by modifying the refund guidelines for such exporters, but more needs to be done. The time limit should also be increased for the same."