It is seen that based on the concerns raised by various exporters, government has immediately acted upon and created a mechanism in GST portal enabling exporters to claim refund of the taxes paid. This step has been widely appreciated and exporters are at ease as their issue of working capital has been now resolved.
We urge government to immediately address the similar issue in case of traders wherein as per transitional provision, traders are eligible to get standard input tax credit of 40%/ 60% based on the output rate of tax. Further, this credit was promised to be given upon payment of output tax. It is noted that traders have already made the payment of GST output tax for the months of July 2017 to October 2017 but still there is no mechanism enabled in the GST portal for availing the standard Input Taxes credit.
This leading to high cash outflow of taxes blocking the funds required for day to day business operations. Therefore, we urge to enable the mechanism for availing transitional credit for traders.