Govt to bring notification aligning existing incentive schemes with GST regime for Exporters

Posted by Daily Shipping Times on 03-07-2017        Tweet

NEW DELHI: Exporters are set to face a more taxing time from July 1 as the Government is planning to come up with notifications aligning existing incentive schemes with the GST regime, which will require them to cough up more levies.

“Exemptions from import taxes on inputs under all popular schemes such as Advance Authorisation and Export Promotion Capital Goods will be heavily curtailed as exporters will now be required to make payment for IGST (integrated GST) and spared only basic Customs duty,” a Government Official said recently.

To make matters worse, new incentives and schemes, especially for the small-scale and labour-intensive sectors, which were to be a part of the foreign trade policy review and announced in parallel, will be ready only in September, according to a statement from the Commerce Ministry.

“During one of the stakeholder consultations, it was announced that an effort will be made to release the mid-term review before July 1, 2017, to align this with the rollout of GST. A number of representations have been received from the exporters regarding GST. Accordingly, it has been decided to release the reviewed Foreign Trade Policy in September 2017,” stated the recent release.