Federation of Indian Exporters Organisation (FIEO) has said that exporters are under very serious financial problems due to draining up of funds and liquidity crisis as GST refunds are not coming to them as fast as promised. Commenting on the issue, Federation of Indian Exporters Organisation (FIEO) Regional Chairman, A Shaktivel told the media, “Many exporters were on the verge of closure due to draining of working capital, since blockage of funds on account of GST was exorbitant.”
As per reports, FIEO sought the urgent intervention of the Union Finance Minister to instruct banks to provide 'Bridge Loan' at soft rate of interest to exporters immediately towards GST refund receivable along with extension of full rate of duty drawback up to December 31 this year. “Unless the Government come up with the solution as suggested, the export sector would be thrown out of gear and become Non Performing Assets,” he added. The Chairman also requested the intervention and support of the Commerce and Industry Minister as well as the State Government to overcome the crisis.