Exporters in serious financial crisis due to GST refunds delay

Many exporters were on verge of closure due to draining of working capital, since blockage of funds on account of GST was exorbitant: FIEO

Exporters are under very serious financial problems due to draining up of funds and liquidity crisis as GST refunds were not coming to them as fast as promised, Federation of Indian Exporters Organisation (FIEO) Regional Chairman, A Shaktivel said on Tuesday.

Many exporters were on the verge of closure due to draining of working capital, since blockage of funds on account of GST was exorbitant, he said in a press release.

Considering the situation, FIEO sought the urgent intervention of the Union Finance Minister to instruct banks to provide 'Bridge Loan' at soft rate of interest to exporters immediately towards GST refund receivable along with extension of full rate of duty drawback up to December 31 this year.
 

Seeking extension of RoSL (Remission of State Levies) up to December 31, Shaktivel said that unless the Government come up with the solution as suggested, the export sector would be thrown out of gear and become Non Performing Assets.

Sakthivel also requested the intervention and support of the Commerce and Industry Minister as well as the State Government to overcome the crisis.