Special Economic Zones – GST Impact Analysis
Even after nine months of GST implementation, SEZ and Export Oriented Units still remain in trouble. The problem of business refund, GST with GST on Ground Level, including GIF Conflicts, is facing problems due to shortcomings in the law. The government is also now in the process of resolving the problem of businessmen. In this regard, a meeting has also been held between senior officials of the Finance Ministry between SEZ and EOU businessmen on Wednesday.
Meetings of Sage Units and GST Senior Officials
Due to the growing problems of SEZ units, the meeting of the Export Promotion Council for EOU (Export Oriented Unit) and SEZ (Special Economic Zone) officials and senior GST officials met. He kept the problems related to GST in the meeting where the officials assured the help.
Interruption in getting GST refund
Export Promotion Council for EOU and Sage Chairman Vinay Sharma told moneybhaskar.com that more than 60 percent GST refunds are still stuck. Because of this, they are having the problem of working capital most. The government has made a refund of about Rs 17,616 crore to exporters by March 2018. Exports more than the IGST refund, with the State GST refund because there no refunds stuck there.
GSE refund claims do not include SEZ
Supplying the SEZ unit comes in zero rated. That the supplier supplying the SEZ unit supply through Legal Undertaking (ALT) but for that, it does not to paid to IGST. If he does not supply through Elioti and IGST, then he can get his refund. Most suppliers charge GST from the invoice from the SEZ unit in place of Aluity or Refund Process. Which becomes a cost for SEZ, but GST has no option to claim refund of GST given to SEZ supplier in the law. GST officials have given assurance to the business to include it.
NSDL, business hassle due to lack of GST portal link
All the SAGE units to submit their data to the NSDL portal right now and after that this information to submitted separately to GST Portal separately. The SEZ Export Association should link the NSDL and GST portals so that the time and expenditure of the business people reduced because the accounting costs have increased due to their filing of returns twice.
Third party export is not getting the benefit of SEZ
SEZ exporters get SEZ benefits on exporting a third party. The SEZ unit says that if an exporter gives a production order to the SEZ unit to complete the order and the SEZ unit has to bring that stock directly to the port, then he has to pay it on IGST at present, as it should not happen because the SEZ unit Is exporting. The government will give SEZ units permission to export the third party to IGST without having them. On this, the authorities have assured to make changes.