Micro, Small and Medium Enterprises (MSMEs) sector of the pharmaceutical industry of Karnataka Region have come forward and expressed that they are facing major cash flow crisis due to delay in refund on Integrated Goods and Services Tax (IGST). These reports have staretd coming in from Karnataka region, Karnataka Drugs and Pharmaceutical Manufacturers Association informed media.
Anjan K Roy, founder and chairman, RL Fine Chem said that the delay in the refunds on IGST paid had affected the MSMEs badly and payments to vendors, stalls supply chain and flow of exports had been stalled. Apart from cash crunch, exporters had been facing problems in applying for refunds on the websites.
He added that the government should make the tax regime smooth and should start refunding otherwise some exporters might go out of business.
Sunil Attavar, president, Karnataka Drugs and Pharmaceutical Manufacturers Association (KDPMA) said that the government has issued a series of new notifications to help exporters to get their refunds. KDPMA had approach senior officers and they have assured the Association that the process of refunds had started and the procedural problems would be sorted out soon.
The delay in IGST refunds had derailed the payment cycle.