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 per cent of India’s exports contributed by merchant exporters,
who predominantly buy finished products
from MSME sector. They 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. According to FIEO estimate if
these inputs tax is not exempted, there will be add-on cost of about 2 per cent
of FOB value on export.
FIEO made a representation for exemption in both the cases and in case not
possible have requested the Government to provide 2 per cent additional benefit
in the forthcoming Midterm Review of Foreign Trade Policy which is going to be
announced before GST implementation to compensate
Mr 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
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 on June 27 to
get clarity on GST on exports and sought clarification on various issues
related to GST including refund procedure, job work, GST rate.