Automated IGST refunds on pan masala, tobacco, similar items to be restricted from Oct 1


PTI, Aug 1, 2023, 12:34 PM IST

Automated refund of Integrated GST (IGST) on export of pan masala, tobacco, and similar other items will be restricted from October 1, the finance ministry has said.

Exporters of such items will have to approach jurisdictional Tax officers with their refund claims and get them cleared, as per a notification dated July 31.

The changes in the notification will come into effect from October 1.

Tax experts said the move is aimed at checking tax evasion in the sector, as there might be over-valuation of goods which are being exported, thus leading to higher IGST refund outgo.

Manual checking of refunds will ensure that valuation is optimally done and taxes are paid at all stages.

The items on which automated IGST refund restriction has been imposed include pan masala, unmanufactured tobacco, hookah, gutkha, smoking mixtures for pipes and cigarettes and other items, including mentha oil. Such items attract 28 per cent IGST, plus a cess.

AMRG & Associates Senior Partner Rajat Mohan said 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.

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.

”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. Therefore, exporters of pan masala may see a constrained cash flow position in the last quarter of 2023, impacting normal course of business,” Mohan added.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Case registered against unknown persons who attempted to attack BJP MLC Ravi

Delhi polls: BJP issues ‘chargesheet’ against Kejriwal; vows to remove AAP from power

PVR INOX rejigs media biz, appoints Chief Sales Officer Shalu Sabharwal as head

Mastermind of kidnapping gang targeting celebrities arrested after encounter in UP’s Bijnor

Neelamangala accident: Tried avoiding hitting car in front, lost control, claims truck driver

Gurdaspur grenade attack: 3 Khalistani terrorists gunned down in encounter in UP

Karnataka: Nine Lord Ayyappa devotees suffer burn injuries in LPG cylinder blast

Related Articles More

Lohia Auto launches EV brand ‘Youdha’, aims to sell 3 lakh vehicles by 2027

“FM ji FM ji, itna tax main kaise bharun”, asks investor Vijay Kedia in viral post

RBI: After another status quo year, all eyes on a growth-propping rate cut with new Guv at helm

Front-running case: Sebi bans 9 entities from market , impounds illegal gains of over Rs 21 crore

Global trends, FIIs’ move to dictate trends in markets in holiday-shortened week: Analysts

MUST WATCH

Tulunadu Daivaradane

Feeding Birds with Creative Paddy Art!

Areca Nut

HOTEL SRI DURGA BHAVANA

Harish Poonja


Latest Additions

Turned dreams of people into source of income: Priyanka slams govt over GST on exam forms

Goa-bound Vande Bharat train deviates from regular route due to technical snag at Diva station

Case registered against unknown persons who attempted to attack BJP MLC Ravi

Mayawati slams BJP, Cong over Ambedkar row

Delhi polls: BJP issues ‘chargesheet’ against Kejriwal; vows to remove AAP from power

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.