Exporters get the shivers from two provisions in Finance Bill 2020

They are worried that the two proposals would make it difficult to seek refunds under indirect tax laws

Exporters are a worried lot due to two provisions in the Finance Bill 2020, which they say would make it difficult for them to seek refunds.

The two proposed provisions are: an amendment in the Section 16(3) of the Integrated Goods and Services Tax (IGST) Act and insertion of rule under the Customs Act for empowering authorities to confiscate goods which were misdeclared for the purpose of refunds and remission.

The amendment to section 16(3) of the IGST Act would take away payment of taxes through IGST credit and retain only payment of these taxes and claiming refunds through input