Forum: EXIM Forum
Speaker: Mr. Mihir Shah
VIA & FIEO organises One Day Training Programme on GST for Exporters and
Session on EDPMS on 05 December 2017
Federation of Indian Export Organisations (FIEO) in association with Vidarbha Industries Association (VIA) and Federal Bank organised One Day Training Programme on GST and session on EDPMS at VIA Auditorium, Nagpur on 05 December 2017.
Mr Jose Skaria, Dy. Vice President, Federal Bank made presentation on Product and Services Available to Exporters from Federal Bank.
Mr Srinivas K N, Asst. Vice President & Head – Forex Cell and an expert on EDPMS related issues made a comprehensive presentation on Export Data Processing & Management System (EDPMS). He said that EDPMS has given better visibility of export data leading to better monitoring and follow-up of realization and reporting along with real-time caution listing requiring exporters to be more aware of the reporting responsibilities. Regarding caution/decaution listing of exporters, he said that updated list of caution-listed exporters through EDPMS are available for AD Banks on a daily basis with the criteria laid down for cautioning /de-cautioning of exporters in EDPMS. It may be noted that extension of time given to AD banks for reconciling the outstanding entries in EDPMS and subsequent handling of export bills submitted by caution-listed exporter ended on July 15, 2017. On August 2, 2017, RBI permitted some relaxation to AD Banks. Exporters who had submitted requisite export documents with the AD Bank (s) after having realized the export proceeds in full would not be treated as caution listed till August 31, 2017. Temporary exemption from caution list will continue for exporters who have exported to OFAC countries like Iran, Syria, etc. where the amount has been received in the Nostro account of a bank, but are still finding their names in the caution list because of non-handling of document by the AD banks. The impact of caution-listing of exporters in EDPMS is manifold. The foremost feature being the exporter cannot export unless full export proceeds are received in advance or as Letter of Credit, ADs prohibited from issuing guarantees on behalf of such exporters and extending existing ones without RBI approval among others.
Mr Mihir Shah, Faculty educated the participants about the latest changes in Provisions and Procedures of Exports under the new GST Regime. He said that the GST Council in its 22nd meeting on 06th Oct 2017 has approved the GST rate of 0.1% for supplies to merchant exporters and Notification No. 40/2017 – CGST (Rate) and Notification No. 41/2017 – Integrated Tax (Rate) dated 23rd October, 2017 have been issued to that effect. The registered recipient i.e. merchant exporters need to provide details of all registered suppliers and corresponding invoices against each item in the shipping bill. He also explained that for the purpose of the notification the registered principal place of business or registered additional place of business for the merchant exporter shall be deemed to be a “registered warehouse” and that the Merchant Exporters may, if required, exclude commercially sensitive information while providing copies of Shipping Bills to registered suppliers.
He said that as the Customs System is designed to automatically grant refunds without involvement of any officer by matching information that is furnished on GSTN portal and Customs system, the responsibility is on the exporters to fill in all the details accurately. Exporters must therefore take due precaution to ensure that no errors creep in while filing Table 6A of GSTR 1 of August 2017 and onwards. In case of wrong entries made in July, 2017 such amendments may be done in Table 9 of GSTR 1 of August month.
He briefed that as far as refund of the unutilized Input Tax Credit on inputs or input services used in making exports is concerned, as per the CBEC Circular No. 17 dated 15.11.2017, exporters shall file an application in FORM GST RFD- 01A on the Common Portal where the amount claimed as refund shall get debited from the Electronic Credit Ledger of the exporter to the extent of the claim. Thereafter, a proof of debit (ARN- Acknowledgement Receipt Number) shall be generated on the GSTN portal, which is to be mentioned on the print-out of the FORM GST RFD-01A and to be submitted manually to the jurisdictional officer. The exporters may ensure that all the necessary documentary evidences are submitted along with the Form GST RFD 01A for timely sanction of refund.
During the Q&A session Mr. Dhananjay Sharma, Dy. Director, FIEO and Mr. Mihir Shah answered many queries by the participants.
Earlier, Mr Omprakash Bagdia, Vice President – VIA welcomed the guests speakers with floral bouquets and in his welcome address, he said that with recent reforms Government intends to create a more transparent and a fairly self-compliant eco-system. Strengthening of EDPMS and implementation of GST are a crucial step forward in this direction.
Mr Dhananjay Sharma, Dy. Director, FIEO, Mumbai in his address, he said that the objective of organising the programme is to sensitise the exporters about the two burning issues that are adversely affecting the exporters. He said that under the EDPMS system implemented by RBI, an authorised dealer bank can caution list an exporter in case he fails to realise the export remittance within two years. A lot of exporters have received notice from their bank informing them that they have been caution listed and exporters are finding it very difficult to get themselves de-caution listed due to lack of proper information and guidelines. Similarly exporters are facing huge liquidity crunch due to delay in refund of IGST paid on exports & input tax credit. The training being organised today would provide exporters with the proper information and guidelines to get themselves de-caution listed in EDPMS system and avoid making mistakes while exporting which leads to delay in GST refund.
Ms Shruti Surjan, Program Coordinator, VIA made an opening remarks and also proposed a formal vote of thanks.
Prominent exporters of region viz. Eros Group, Apex Knives, Suryalaxmi Cotton Mills Ltd., Minex Metallergical co Ltd., Signum Fire Protection India Pvt Ltd., Lars Enviros, Chetna Alloys, Dhanraj Alloy & Stainless Steel Pvt Ltd., Laxmi Sortex, Dipon Gas Infrastructure and CHAs attended the training program.
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