Export sector welcomes the decision of the GST Council: FIEO

Posted by Daily Shipping Times on 13-09-2017        Tweet

NEW DELHI: Hailing the decisions of the GST Council in resolving some of the concerns of the exports sector in its meeting at Hyderabad, Mr Ganesh Gupta, President, FIEO said that the pragmatic and positive decisions taken by the Council are welcomed by the exports sector.

FIEO Chief said that reduction of the GST rate on supply of scrips like MEIS/SEIS/DFIA scrips from 12% to 5% follows the fitment formula adopted by the Council. This will also give some boost to premium on scrips which plummeted with restriction on utilization of scrips in the GST regime. Mr Gupta exuded confidence that the wider utilization of scrips will also be looked by the new Committee as Government’s objective is to benefit the exporters through the grant of scrips rather than the importers.

Restriction on Inter-State job work disrupted manufacturing in clusters close to Inter-State borders and gave a jolt to employment in such areas.

The new changes for Inter–State job work, where job worker’s turnover is below the threshold limit of Rs 20 lakh (Rs 10 lakh for specified States) has now been permitted without Registration of job worker, will give a boost to employment in industrial clusters close to inter-state boundaries particularly units in National Capital Region said Mr Gupta.

FIEO President said that we whole heartedly welcome the formation of institutional mechanism where a Committee of Central and State Government has been formed under the Chairmanship of the Revenue Secretary to address the issues of exports sector. FIEO will shortly be flagging concerns of export sector with the Committee.