NEW DELHI: The implementation of GST from 1st July, heralding a new era in tax reforms, would impart much needed competitiveness to Indian exports with initial hiccups. The spin off effect on economy particularly on the logistics sector would also help both manufacturing & exports. The refund mechanism through an electronic platform will reduce transaction cost. This was stated by Shri Ganesh Kumar Gupta, President, Federation of Indian Export Organisations (FIEO).
In initial stages, exporters will have to bear the blockage of their working capital and therefore the refund mechanism should be efficient in line with the spirit of the Act.
Looking at the pragmatic approach of the Government in facilitating Export-Import trade, Mr Gupta expressed optimism that Government will soon consider to give IGST exemption to various duty neutralization instruments under Foreign Trade Policy besides exemption on procurement of goods for exports by merchant exporters.