Exporters say, the impact of changes announced by the Goods and Services Tax (GST) Council last week, including the one to expedite refunds to those categorized as risky exporters, will mainly depend on their implementation. The GST council has recommended amendment in rule 96 of the Central GST Rules for transmission of Integrated GST refund claims on the portal in a system generated FORM GST RFD-01 to the jurisdictional GST authorities for processing.

Earlier, refund claims were suspended or withheld for exporters identified as risky and authorities would conduct lengthy verifications before releasing the amount. The rule change promises to expedite such IGST refund claims. The Council will now consider supplies from duty-free shops at international terminal to outgoing international passengers as exports by such shops. Consequently, it will make refund benefits available to such suppliers.

The country’s key markets, such as the US and the EU, are facing risks of recession. Against this backdrop, the move to expedite refunds for even risky exporters will help improve their cash flow. However, Raja Shanmugham, President, Tirrupur Exporters Association, opines, the move to treat supplies from duty-free shops at international terminal to outgoing international passengers as exports, is unlikely to have substantial beneficial impact on exports.