Govt will only block refund on input tax credit before July 31: Goyal

Surat: Union finance minister Piyush Goyal has made it clear to textile industry leaders that the government does not intend to block input tax credit (ITC), but they are just blocking refund on the amount before July 31.

City textile trade leaders from power loom sector, textile traders and Federation of Indian Art Silk Weaving Industry (FIASWI) representatives had attended a meeting with Piyush Goyal through a video conference at the office of district collector on Thursday. The meeting was held to clear confusion prevailing in the textile sector over the ITC.

Based on industry representation, the GST Council in its 28th meeting held on July 21 decided to allow refund of ITC accumulated due to inverted duty structure in respect of certain textile goods. A notification dated July 26, amending the earlier notification of June 28, 2017, was issued with a clause that the accumulated ITC credit lying unutilized in balance up to July 31 shall lapse.

Industry sources said denial of utilization of eligible ITC availed by fabric manufacturers by treating it lapsed beyond July 31 will be a big blow to the industry.

FIASWI chairman Bharat Gandhi told TOI, “The Union finance minister has made it clear that the government has no intentions to block the credit, but they are just blocking refund on the amount before July 31. Also, the Union finance minister has asked us to visit him personally to clear the confusion.”