New
February 23, 2023
By
Paramita

Interest on IGST refunds for risky exporters

Exporters in India are eligible to receive a refund for the amount of Integrated Goods and Services Tax (IGST) paid on exported goods. However, the refund process can be complicated and time-consuming, and there are certain risks associated with exporting that can delay or even prevent the refund from being processed. One such risk is that of a "risky exporter," which is defined as an exporter who has been identified by the government as having a high risk of fraud or non-compliance with export regulations.

The government has recently introduced a new policy regarding the interest on IGST refunds for risky exporters. Under this policy, if a risky exporter is eligible for a refund of IGST, but the refund is not processed within 60 days of the due date, the government will pay the exporter interest on the refund amount. The interest rate will be 9% per annum, calculated from the due date of the refund until the date of payment. This new policy is aimed at providing relief to risky exporters who may face delays or other issues in receiving their refunds.

However, it is important to note that this policy only applies to risky exporters who have been identified by the government as such. If an exporter is not considered risky, they will not be eligible for the interest on IGST refunds. Additionally, the policy only applies to refunds that are due after October 1, 2019. Refunds that were due before this date will not be eligible for interest.

It is also important for exporters to understand the reasons why they may be considered "risky." Exporters may be identified as risky if they have a history of non-compliance with export regulations, if they are operating in a high-risk sector such as precious stones or metals, or if they have been flagged by government agencies for other reasons. If an exporter is identified as risky, it is important for them to take steps to address any issues and comply with all regulations in order to reduce the risk of delays or other issues with their refunds.

In conclusion, the new policy regarding interest on IGST refunds for risky exporters is a positive development for exporters who face delays or other issues with their refunds. However, it is important for exporters to understand the reasons why they may be considered risky, and to take steps to comply with all regulations in order to reduce the risk of delays or other issues with their refunds.

Suggestions



WIRE RODS - GST RATES & HSN CODE 8311
DIAZO AZO AZOXY COMPOUNDS - GST RATES HSN CODE 2927
Knowing About The Reasons To Register As Meesho Seller

Related Blog Post