GJEPC welcomes government relaxation of pending IGST refunds on exports
The Gem and Jewellery Export Promotion Council has praised the Union Government Ministry of Finance for its decision to relax pending IGST refunds on exports, as jewellery exporters feel the financial strain of lockdown.
The Central Board of Indirect Taxes and Customs, Ministry of Finance issued a circular on April 22 stating that will extend the facility of SB005 error correction in its ‘Customs EDI System for Shipping Bills’ dating up to December 31, 2019, the GJEPC announced on its website, praising the move. This will allow cash strapped Indian exporters the benefit of greater IGST refunds which could help their businesses stay afloat during lockdown.
“The entire country is facing unprecedented challenges due to the Covid-19 pandemic, and… exporters are facing genuine hard-ships due to the SB005 errors, ” read the Ministry of Finance’s circular, the GJEPC reported.
The jewellers’ association had been lobbying the government to address non-refund of IGST due to SB005 errors for some time, it said. SB005 errors arose when information on exporters’ GST returns and customs data presented did not match.
“All members of the trade, exporters, shipping lines, customs brokers are duly advised again to make efforts to understand the problems due to mismatch of invoices resulting in SB005 error, and to invest time and due precautions for preventing such error in the future,” read the circular.
As global trade remains halted, India’s jewellery exporters are facing a tough time. The cancellation of weddings this wedding season and the fact that jewellers without e-commerce stores are unable to retail their products has put a large financial strain on the industry.
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