The government has suggested that it should be made mandatory for the exporters to re-pay the excess input tax credited to them in due time. It was also said that the repayments will not be required to be credited if the Reserve Bank of India (RBI) says so.
Deloitte’s senior director Saloni Roy said, ‘Exporters are only required to prove that exports are made. With the proposed amendment, the shortcoming is being addressed on both fronts—one must now prove realization of sale proceeds and that too, within the corresponding time limits’. She also said that the repayments will not be mandatory if it hurts the financial situation of the exporter. Under certain cases, the exports are done on a credit basis so no ITC repayments will be required in such cases.
