EXCLUSIVE!!
According to highly placed sources, NBSB has learnt that Exporters stuck refund of Rs 65000 crore for July to October 2017 causes huge headache for govt and Its emergency situation as export orders due to it are down by 15-20% for peak demand export period of Christmas sales. . Rs 2,00,000 crore are likely refunds on export of goods per year now. This refund being real time refund at 18% ( in some items 12 and 28 also) is minimum 3 times of earlier refunds paid through Duty Drawback which on average used to be 3 to 5 % of total value of exports. Govt did not anticipated this heavy real time refunds which is 3 times of annual Duty Draw back. Now 65000 crores are stuck for just 4 months with govt and cant be released before filing of GSTR 3, so refunds will start flowing from November end only.
Sources says All working capital flows dried up for exporters leading to stoppage of orders by exporters….now order book lower fr coming months. These lower export figures will start reflecting from Nov- Dec thus would effect more then 1 crore job losses and huge contraction in economy. Foreign trade being 40% of entire GDP of India, now its being seen as huge setback never experienced in last 70 years of trade.
Alarmed at 65000 crore refunds stuck, govt met exporters yesterday and preponed GST council meet to 6th Oct.
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It is believed, its now do or die situation as GST revenue is on lower side n outgo on export refunds huge. Its clear thar govt doesnot have 65000 crores in its kitty to make payments. Moreover by mid September Govt has consumed 92% of borrowings set for whole year. In between, the IT collections by 15th Sep, date of advance tax, have fallen by 15% compared to its set target. Thats why there are alarm bells.
Govt is now in a state of meetings with economists, ministers and PM will meet within 2 days on this. Its making of unprecedented economic crisis…a depression India has not seen before and can engulf entire reputation of govt. Its huge economic typhoon heading towards our shores.
