Page 45 - Plastics News May 2019

BUSINESS NEWS

Exporters likely to get GST refunds automatically from June

xporters of goods and services, as well as suppliers to loaded with HSN-enabled invoice level information by
ESEZ units, are likely to get GST refunds automatically every vendor, so that only eligible tax credits could be
from June as the revenue department plans to introduce processed without any human intercession," he added.
faceless scrutiny of refunds and faster claim settlement,
DQ RIÀFLDO VDLG 8QGHU *67 HYHU\ SHUVRQ PDNLQJ D FODLP RI Blackstone to buy packaging
refund on account of 'zero-rated' supplies has two options.
Either he can export without payment of integrated tax ¿UP (VVHO 3URSDFN IRU DURXQG

$460 million

lobal investment
GÀUP %ODFNVWRQH KDV
said it has committed
up to $460 million to
purchase a majority
stake in speciality
packaging company
under Bond/ LUT and claim a refund of accumulated Input Essel Propack that
Tax Credit (ITC) or he may export on payment of integrated manufactures laminated
tax and claim refund thereof.Currently, the facility of plastic tubes catering
automatic refund is available only for those exporters who to the fast-moving
have paid Integrated Goods and Services Tax (IGST) while consumer goods (FMCG) and pharma space. Ashok Goel
exporting goods. Since the GST Network (GSTN) systems Trust and its associates currently hold close to 57 per
are integrated with Customs, hence, refunds are generally FHQW VWDNH LQ WKH ÀUP %ODFNVWRQH VDLG LW ZLOO LQLWLDOO\
transferred to the bank accounts of such exporters within a buy 51 per cent from Ashok Goel Trust at Rs 134 per
fortnight. However, manufacturing exporters and suppliers
share and will eventually do an open offer to acquire
WR 6(= ZKR ZDQW WR FODLP D UHIXQG RI ,7& KDYH WR ÀOH DQ an additional 26 per cent stake at Rs 139.19 per share.
application in Form GST RFD-01A on the common portal Based on the open offer subscription, the purchase
and thereafter manually submit a print out of the form price consideration will vary between approximately
DORQJ ZLWK RWKHU GRFXPHQWV WR WKH MXULVGLFWLRQDO RIÀFHU $310 million and $462 million.The sale is expected
Once implemented, the time period for such refunds will to close in the coming months, subject to customary
come down to about a fortnight from months at present. closing conditions and approvals. Ashok Goel, who
"The revenue department and GSTN is working to make
the process of seeking tax refund by all exporters faceless has been associated with Essel Propack as a director
since 1984 and is the chairman and managing director,
by next month. It would make the process faster and also will retain around 6 per cent stake and remain in an
KHOS LQ HOLPLQDWLQJ IDNH UHIXQGV DQ RIÀFLDO WROG 37, advisory capacity. He will receive about Rs 16 crore
GST refunds of exporters run into thousands of crores
and any delay in the processing of refund claims blocks SHU \HDU IRU D SHULRG RI ÀYH \HDUV IRU WKH DGYLVRU\
working capital of exporters. AMRG & Associates Partner role, he told reporters over a conference call.Asked
Rajat Mohan said fully computerized tax refund in case of whether the deal might be used to reduce the Essel
export of services would be based on a comprehensively *URXS GHEW *RHO VDLG $VKRN *RHO 7UXVW LV QRW ÀQDQFLDOO\
integrated GSTN system which connects with RBI servers to or commercially a part of the Essel Group. Founded in
track the receipt of payments and link them automatically 1982, Essel Propack has a considerable market share in
with invoice level information. "Tax refunds for inverted the laminated tubes market with 20 facilities across 10
duty structure could also be copiously automated in countries. Its clientele includes global brands in the oral
future, however, it would require GSTN system to be care, beauty, cosmetics and pharmaceutical industries.

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