Many large companies to move Appellate Authority against GST demand notices
In recent days, an increasing number of GST notices have been sent to many companies mainly on account of alleged discrepancy in input tax credit (ITC).
Following its decision to exempt small exporters from furnishing bank guarantee for shipping goods and services, the government on Saturday hinted that it may take more steps to provide additional relief to such business houses.
Union Finance Minister Arun Jaitley, referring to the decision scrap bank guarantees said: “This decision is taken in response to difficulties brought to notice of government by small exporters in furnishing bond with bank guarantee.”
“Issue of cash blockage in case of exporters is expected to be partially addressed by this measure. More measures are under consideration,” he said in another tweet.
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The finance ministry had on Friday decided that under the Goods and Services Tax (GST), an exporter can get exemption from payment of Integrated GST by submitting a bond or Letter of Undertaking (LUT).
Exporters had raised the issue more than a week ago with revenue secretary Hasmukh Adhia and brought to the notice of the government the difficulties in furnishing bond with requisite bank guarantee.
Exporters also want the government to do away with the need to furnish a bond and an LUT. These documents are used as a proof of export which they say anyway gets captured in the GST network through the shipping bill and invoice for outbound consignments.
However, this long term demand of exporters for the government to dispense with these documents may take some more time as it requires a legislative change.
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