Rules on IGST refund ambiguous: Tirupur’s exporters

    Even as the Centre evinced its readiness to give IGST tax refund, a good number of exporters in Tirupur have not made an earnest attempt to file their returns, citing ambiguity in making the refund claim, industry insiders say. “Our understanding of the GST notifications on IGST refund has led us to believe that it would be cleared automatically through the refund mechanism. But there is an anomaly in this. We have decided to approach the GST Council to request a correction,” said Raja M Shanmugham, President of Tirupur Exporters’ Association, referring to the import of capital goods, wherein the tax claim is not allowed by way of refund. “We learn that this cannot be set off against inputs, including raw material purchase. The IGST incidence is quite high in import of capital goods,” he added Exporters have also expressed anxiety over not being able to make the IGST refund claim using the carry-forward mechanism route.

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