- Implementation of Goods and Services Tax (GST) from July 1 would help reduce cascading effects of multiple taxes, lower cost and make exports more competitive, a top government official said today.
- Commerce Secretary Rita Teaotia said the two main export promotion schemes – Merchandise Exports from India Scheme (MEIS) and Services Exports from India Scheme (SEIS) – will continue post GST implementation but would be aligned with the new indirect tax regime.
- The commerce ministry, she said, is reviewing the validity of the scrips and export obligation periods to make them more realistic and aligned with GST network so that there is a seamless process of extending benefit to exporters.
- Exporters get duty/tax credit scrips under the incentive schemes. These are kind of certificates which can be used to pay duties including import taxes.
- Due to introduction of GST, “there will be low effect of duty on many items, reduction in cascading effects of multiple taxes despite the apprehensions felt by the EXIM (export- import) community, ultimately resulting in lowering the cost and making our exports more competitive,” FIEO said in a statement quoting Teaotia.
- Speaking at the event, FIEO President Ganesh Kumar Gupta said duty drawback rates may now only cover the basic customs duty on the inputs.
via Rita Teaotia: GST to make exports more competitive: Commerce Secy – The Economic Times
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