new delhi passenger vehicle exports from india have run into gst speed breaker as manufacturers have been unable to file claims since july and pending sum has crossed over rs 1000 crore industry players said as the current gst system of making payments upfront and claiming input tax credit refund is not functioning properly the working capital requirement for companies have increased and they could rethink on exports till the issues stay unresolved moreover ford india cfo david schock told that the quantum of cash needed to meet compensation cess of 122 per cent under gst from 14 per cent as existed earlier has been a steep increase elaborating on issues faced by automobile exporters society of indian automobile manufacturers siam deputy director general sugato sen said companies which are exportedoriented are suffering because the current gst system of making payments upfront and claiming the refund is not working properly it is leading to accumulation of gst credit which is hurting the exporters he added there are companies whose refund has gone up to hundreds of crores of rupees it has led to increase in the working capital requirements of the companies which has made them cautious in exports sen said in the julyoctober period passenger vehicle exports declined by 1445 per cent to 235933 units as compared with 275789 units in the same period of last year also read online sales of auto components impacted by complex gst model boodmo in the same period total vehicle exports including two wheelers and commercial vehicles rose by 807 per cent to 1317936 units as compared with 1219460 units in july october period of 2016 while some of the major export markets have slowed down industry players said the gst refund issue has also played a part in the decline of vehicle exports according to an industry source the pending refund amount of top four passenger vehicle exporters alone have crossed rs 1000 crore so far although schock did not comment on the amount he said while the government provided the functionality of refunds it is yet to be operationalised and because of lack of clarity and processes companies have not been able to file refund claim from july 2017 until october 2017 in case of refund of input tax credit the absence of a clear procedure and roadmap is another area of concern he added he further said exporters now need to allocate significantly more funds due to the revised normstax structure and blocking working capital for an extended duration especially at a time when interest rates are high doesnt augur well also read have luxury carmakers hopes around gst been belied top honchos explain expressing similar views volkswagen india pvt ltd president managing director andreas lauermann said we are facing challenges since there is no clarity on how refund of gst will be paid on export cars this has led us into having a lot of credit blocked with the authorities seeking exemption from payment of compensation cess on