In a relief to exporters, Finance Minister Arun Jaitley at the 22nd meet of the GST Council today declared that each exporter will get an e-wallet, where a notional amount will be paid to him/her as advance credit through which they can pay their taxes.
Taking into account the fact that exporters’ credit was facing blockage that affected their liquidity, the Council declared the roll out of these e-wallets by April 2018.
Jaitley also said that exporters will be refunded for the month of July and August from October 10 and from October 18 respectively, by way of cheque.
The e-wallets will provide exporters the funds to pay the tax without choking liquidity and actual refunds will be offset against advance refund in e-wallet.
It should be noted that prior to GST, exporters did not incur taxes for import of inputs for export purposes. However, post GST, IGST blocked their working capital.
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