AIMED Hails Government’s Move for Faster GST Refunds to Boost Indian Manufacturing
The All India Manufacturer’s Organization for Economic Development (AIMED) has praised the Central Government’s initiative to fast-track Goods and Services Tax (GST) refunds, viewing it as a critical move to boost the Indian manufacturing sector.
Core Benefits for Manufacturers
- Improved Working Capital: The primary benefit of faster GST refunds (specifically the refund of accumulated Input Tax Credit or ITC) is the immediate improvement in working capital and liquidity for manufacturing units. Manufacturers often have large amounts of funds blocked in the form of ITC until their refund applications are processed.
- Enhanced Global Competitiveness: By quickly receiving their refunds, manufacturers can lower their effective operating costs and become more price-competitive in the international market, encouraging exports and scaling production.
- Simplified Procedures: AIMED supports the shift towards risk-based approval for refunds. This approach, which prioritizes quick clearance for compliant taxpayers while focusing scrutiny on high-risk cases, reduces bureaucratic delays and improves the overall ease of doing business for the sector.
AIMED’s Focus
The organization views this procedural reform as being just as crucial as the recent GST rate rationalization for stimulating the “Make in India” initiative and empowering domestic manufacturing.
Source :- BWHealthcareWorld