GST implementation has been smoother than expected: Jaitley

The decision-making mechanism at the top between the Centre and the states has been "reasonably institutionalised" and the mechanism created to address day-to-day issues is robust, he said.

"... these are early days of the implementation of the alternative taxation system. It appears to be so far going on smoother than expected," Jaitley said, addressing the 70th annual general meeting of the Indian Banks' Association here.

He said the number of people coming under the network itself is now likely to expand gradually.

The Goods and Services Tax (GST) was implemented from July 1 this year. It brings the economy under a uniform tax regime.

India's GDP grew slower at 5.7 per cent during April-June -- the lowest in three years of the Modi government while lagging China for the second straight quarter -- as manufacturing slowed ahead of the GST launch and note ban impact lingered.

Jaitley had recently attributed the lower GDP numbers to pre-GST de-stocking of goods and expressed hope that the economy will grow at 7 per cent, saying manufacturing has bottomed out.

On demonetisation, Jaitley on Friday said it was a conscious effort to alter the saving and spending pattern of the Indian society, which was largely cash dependent.

A lot has happened to the country and the economy in last one year and there is a lot of concern with regard to banking system, which is lifeline for the economy, he said.

While credit goes to the banking sector for financial inclusion as well as handling demonetisation drive successfully in a few weeks, Jaitley noted that stressed assets are core area of concern for the banking system.

"It has been the major challenge with regard to the increasing number of stressed assets. I think it is this which is really the core area of concern today," he said.

"Whatever steps that are required to be taken to find a resolution to this problem (NPA) we will expeditiously work with India's banking system in order to strengthen it," he said further.

New Delhi: The finance ministry has decided to refund Rs 600 crore of taxes to exporters in the next few days to help them tide over problems on account of GST implementation, a government official said on Friday. The ministry is also working on a scheme for refund of taxes for exporters. "Rs 600 crore will be refunded in the next few days. Going forward, refunds will be given in three days. A new scheme for exporters will be placed before the GST Council on October 6," the official said. The refund scheme will be such that it is legally tenable and financially viable, the official added. The move assumes significance as FIEO Director General Ajay Sahai has said that if refund does not start flowing immediately, then about Rs 60,000-65,000 crore would be stuck by the end of October. FIEO has time and again stated that exporters are facing liquidity problems due to the implementation of the GST.

New Delhi: The committee on exports set up by the GST Council is looking at ways to ensure timely refund of taxes, if necessary through manual procedure, the finance ministry said on Friday.

It has also asked states as well as central government authorities to expeditiously clear the pre-GST refund claims of central excise and VAT, "so that the exporters will get immediate relief". Regarding the refund under the Goods and Services Tax regime, the ministry said in a statement that the committee is trying to find a way of giving refund by linking GSTR 1 with GSTR 3B forms. While GSTR-3B is the initial simplified return which businesses have to file, GSTR-1 is the final sales return to be filed every month. For July, where GSTR 1 form has been already filed by businesses, it said the authorities would be in a position to process the refund applications.

"Therefore, the exporters, who have not yet filed form GSTR 1 for July, may be advised to file it immediately and not to wait till the deadline," the ministry said, adding that GSTN application for refund is also getting ready.

It said the committee is also finding other ways of giving refunds, "if necessary through a manual procedure".

It said lot of people are speculating that refund for inputs in case of exports under GST will be available only when regular form GSTR 3 is filed for every month, but "this is not the case".

The committee have discussed various methods of resolving the issue of blockage of funds for the exporters. Earlier this week, it had interacted with the exporters of eight sectors who made detailed presentations on the problems being faced by them. The committee, it said, would present the solution to the problems before the GST Council as soon as possible.

It also allayed the apprehensions expressed in the media about the problem of blockage of working capital for exporters post-GST. "There are various figures also being discussed on the blockage of such funds, which are wild estimates. Such media reports are not based on facts," it added.