The Government may soon roll out duty drawback
on goods and services tax (GST) to benefit small and medium exporters as fault
lines increasingly surfaced in India's exports despite high growth in May and
June this year.
Gupta, President, Federation of Indian Export Organisations, said a
three-member committee headed by G K Pillai, Former Home Secretary and is
working out the GST duty drawback rates and is expected to submit its report in
the next few weeks. After vetting, the Government is likely to roll them out
out by October 1.
e-wallet scheme too is expected to be announced by October 1.
drawback, a popular scheme to refund taxes like excise, customs and
countervailing duties paid on intermediary items for exports, was withdrawn
with the launch of GST on excise and countervailing duties. It was, however,
continued for customs.
exporters may still prefer GST where one gets offset for taxes paid on
intermediaries. Small exporters find it difficult and cumbersome to pay GST as
it involved additional expenditure on auditing and the like.
that high exports growth in the last couple of months was mainly due to exports
of petroleum products, chemicals and pharma. As global oil prices were high,
Indian petroleum exporters reaped benefits and overall exports looked
impressive in dollar terms.
About 45% of
India's exports are from MSME sector, which has been badly hit due to
demonetization and the rollout of GST. MSME exports create jobs as well.
containers is a major problem for exporters in all the Indian ports, as they
are yet to acquire scanners. As a result physical examination of containers is
being done and this was putting a lot of exporters into difficulty and delaying
shipments, Gupta said, adding, continuing with the earlier practice of physical
examination by customs officials at factory site will prevent this duplication
of work and delay in shipment.