New Delhi: The government on Thursday said that he would clear the incentives that had not been paid more than RS 56,000 Crore to the exporter, with several arrears will return at least two years.
“Along with a tax refund, this will create a RS 75,000 Crore Liquidity for exporters,” said Minister of Industry and the Piyush industry to reporters.
The move occurred after the intervention of Prime Minister Narendra Modi, he said, adding that 45,000 exporters were established to benefit.
While the Ministry of Commerce and Exporters have encouraged it, the income department has not released funds to clean up contributions, which resulted in exporters to borrow or dip their reserves.
The Ministry of Finance seems to have changed his attitude after improvement in cash flows after pick-up in economic activities after the second wave of second covid-19 pandemic.
In fact, even a new tax return scheme operated eight months after kicking.
Although the announcement occurred on Thursday, payment will take time.
Goyal said that claims must be submitted on the portal by exporters until December 31, which means payment will be made in the months after that.
Exporters have complained that refunds and incentives announced by the government should not be stopped the same as the authorities do not stop collecting taxes.
In addition, cessation is seen to breed the system where officials adopt pick-and-select policies.
Most arrears, around Rs 33,000 Crore, are related to the export of merchandise from the Indian scheme (MEIS), while Rs 10,000 Crore is for the service sector, which has been hit by the most difficult by pandemic.
Some beneficiaries will include travel companies, tourism and hospitality.
Another Rs 5,300 Crore will be used to restore the tasks paid by textile exporters.