A typical case scenario as a MSME exporter. The problems we have in hand which no one attends to. Eg- I buy 1 lac worth of services and goods every month on which I have to pay 18% GST. So my cash out flow is 1.18 lacs 1/7

I have a 10% margin on my products and I sell for 1.10 lacs. So my cash flow is negative of 8K. I apply for refund online after I sell. My lead time of production is 3 months and best case scenario if refund comes within 1 month of export so after 4 months I get refund. 2/7

So in this 4 months I have refund due of 72 k for which I have to take a bank loan to manage my cash flow. I pay interest to bank which makes my product expensive. This is in best case 100% efficiency scenario. Any slip here and there and this will mount. 4/7

Now imagine the numbers for a company with 5 Cr export per month. At any point of time our refund due is more than the CC limit I am using. Finance is 3% cost of my product. If only my money was not stuck , I can make my products cheaper and penetrate more in global market 4/7

If only the government removes input GST for exporters then no such cash flow problem. Add to this 3 people and a consultant I have to employ to manage all this. Govt also has to employ some time and people to manage my GST account. 5/7

A system is easily possible to ensure compliances. I remember had ordered a lens in Canada and gave my customers office address for delivery. The camera store didn’t charge VAT as it was going to a commercial establishment. If it was home add VAT wd have been charged 6/7

It’s such a non productive work for enterprise and Government both. Keeping all paper work, filing returns and some silly mistake somewhere and u lose that money. Instead of giving more debt make system simpler and compliances practical 7/7