(MENAFN- KNN India)
IGST Refund Restriction For Export Of Pan masala, Tobacco, Mentha Oil From Oct 1 New Delhi, Aug 2 (KNN) Companies engaged in manufacturing pan masala, gutkha, chewing
tobacco
and mentha oil will be restricted from automated refund of Integrated Goods & Services Tax (IGST) from October 1.
The Central Board of Indirect Taxes & Custom (CBIC) initiated this move after recommendation by the GST Council to curb tax evasion by these companies.
A Group of Ministers has recommended this move under the chairmanship of Odisha's
Finance Minister, which was approved by the council in its meeting on July 11.
According to the notification, issued by the CBIC, the restriction will be applicable on 25 types of products, including
pan-masala, unmanufactured tobacco including 'Hookah' or 'gudaku' tobacco, smoking mixtures for pipes and cigarettes, filter khaini, pan masala containing tobacco and other tobacco products among.
However, tax refunds for such exports would continue to be sanctioned under ordinary course by the proper officer of the jurisdictional tax authority.
“Such restriction on automated refunds for pan masala Tobacco & other similar items would lead to a blip in Exporters' Cash Flow, reduce global competitiveness in the sector, and increase compliance and administrative burden on the exporters,”
Rajat Mohan, senior partner, AMRG & associates said.
While restricting IGST refunds may lead to a temporary increase in tax revenue for the government, as the refund amount will remain with the government for a more extended period, experts say there will be an impact on exports.
India
is one of the world's major exporters of pan masala, primarily to countries in the Middle East, Southeast Asia, and some African nations.
(KNN Bureau)
MENAFN02082023000155011030ID1106771869
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.