GST REGIME : FIEO SEEK EXEMPTION FROM GST ON INPUTS USED
IN EXPORTS
Dr. A.
Sakthivel, Regional Chairman, FIEO Southern Region said that exporters
should be exempted from payment of GST on inputs used in exports.
The exemption should also be given to merchant exporters who procure
goods for exports. More than 45% of India’s exports contributed
by merchant exporters who predominantly buy finished
product from MSME sector, should be exempted from payment of GST
instead of pay duty and apply for refund after export. Otherwise
there will be liquidity crunch for exporters under working
capital.
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| Dr. A. Sakthivel, Regional Chairman, FIEO Southern Region |
According to FIEO estimate if these inputs tax is not
exempted, there will be add-on cost of about 2% of FOB value on
export. FIEO made a representation for exemption in both the
above cases and in case not possible have requested the Government to
provide 2% additional benefit in the forthcoming Midterm Review of
Foreign Trade Policy which is going to be announced before GST
implementation to compensate
C.P. Rao,
IRS, Principal Chief Commissioner of Central Excise and Service Tax
assured exporters that GST regime will be flexible and user-friendly
and will act to easy on doing business. He assured all support
for the exporting community. Officers present in the meeting made
detailed presentation on applicability of GST for exporters. More
than 350 exporters take part in the session organized by FIEO at
Chennai today to get clarity on GST on exports and sought clarification
on various issues related to GST including refund procedure, job work,
GST rate etc.
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