Exporters allege states of delaying tax refunds under DDS

Ambiguity over GST benefits impacts pricing of exports

by Arjit Singh Bhambra

Exporters are facing difficulty in recovering their tax refunds under the duty drawback scheme (DDS) from state governments post implementation of GST, according to the Federation of Indian Export Organisations. Under DDS, customs and excise duties on inputs and service tax in respect of input services get neutralised. The delays in refunds are increasing the woes of exporters who are facing cash crunch. Issues like mismatch in HSN code numbers and tax on duty scrips are further aggravating the problems. Exporters costs have risen by up to 1.25 per cent (FOB) after GST, according to the organisations estimates. Due to the ambiguity about incentives available under GST, exporters are finding it difficult to fix their pricing strategy for the EU and the US market.

References
1. http://www.business-standard.com/article/economy-policy/gst-woes-exporters-allege-no-duty-drawback-refund-from-states-117091300906_1.html
2. http://economictimes.indiatimes.com/news/economy/policy/exporters-in-serious-fiscal-crisis-due-to-gst-refunds-delay/articleshow/60482451.cms
CMIE STATISTICS
Unemployment Rate
Per cent
5.7 +0.1
Consumer Sentiments Index
Base September-December 2015
92.8 -0.4
Consumer Expectations Index
Base September-December 2015
91.9 -0.3
Current Economic Conditions Index
Base September-December 2015
94.1 -0.5
Quarterly CapeEx Aggregates
(Rs.trillion) Mar 17 Jun 17 Sep 17 Dec 17
New projects 4.07 2.13 1.22 1.08
Completed projects 1.96 0.86 1.05 0.92
Stalled projects 0.74 2.67 0.67 0.93
Revived projects 0.86 0.30 0.29 0.23
Implementation stalled projects 0.33 0.69 0.73 0.58
Updated on: 18 Feb 2018 12:20PM
Quarterly Financials of Listed Companies
(% change) Mar 17 Jun 17 Sep 17 Dec 17
All listed Companies
 Income 10.2 9.7 7.9 12.1
 Expenses 11.9 10.0 9.0 12.9
 Net profit 16.4 -19.8 -16.8 -10.4
 PAT margin (%) 6.0 5.3 5.7 5.2
 Count of Cos. 4,469 4,454 4,426 3,985
Non-financial Companies
 Income 11.8 10.3 7.7 13.0
 Expenses 15.6 10.6 7.5 11.8
 Net profit -2.2 -25.2 -4.2 15.7
 PAT margin (%) 6.1 5.2 6.4 6.8
 Net fixed assets 6.9 9.2
 Current assets 2.7 78.8
 Current liabilities 8.9 11.0
 Borrowings 4.9 10.5
 Reserves & surplus 6.1 5.2
 Count of Cos. 3,453 3,439 3,408 3,095
Numbers are net of P&E
Updated on: 18 Feb 2018 12:20PM
Annual Financials of All Companies
(% change) FY14 FY15 FY16 FY17
All Companies
 Income 10.0 5.4 1.4 6.7
 Expenses 9.9 5.5 1.6 7.1
 Net profit -2.5 0.9 -12.9 18.8
 PAT margin (%) 3.1 3.1 2.8 5.6
 Assets 12.3 9.5 9.8 8.4
 Net worth 9.6 8.6 10.8 7.5
 RONW (%) 6.1 6.0 5.0 8.2
 Count of Cos. 24,506 24,447 22,230 10,161
Non-financial Companies
 Income 9.7 4.6 0.5 6.6
 Expenses 9.4 4.7 -0.1 7.7
 Net profit -3.1 -6.9 12.6 11.7
 PAT margin (%) 2.2 2.1 2.5 5.2
 Net fixed assets 11.7 13.2 15.4 7.5
 Net worth 8.2 7.1 11.2 5.5
 RONW (%) 5.1 4.8 5.3 8.9
 Debt / Equity (times) 1.1 1.1 1.1 0.8
 Interest cover (times) 2.0 1.9 1.9 2.8
 Net working capital cycle (days) 69 67 66 52
 Count of Cos. 19,752 19,893 18,615 7,888
Numbers are net of P&E
Updated on: 04 Feb 2018 9:54AM

Data added for HPI at Assessment prices and HPI at Market prices