Engineering Exporters Raise Concern Over GST at Board of Trade Meet

  • 22-Jun-2017
  • Engineering Exporters Raise Concern Over GST at Board of Trade Meet

NEW DELHI : Days before the roll out of the Goods and Services tax, engineering exporters, under the aegis of the EEPC India, have raised before the Board of Trade their strong GST related concerns including the impending disruptions in the way different export promotion schemes are implemented , after July 1.

Making a detailed presentation before the BOT, Chaired by Commerce Minister, Mrs Nirmala Sitharaman, the EEPC India Chairman Mr T S Bhasin said exporters are worried about the entire administration of different schemes like MEIS/Advance Authorisation of Imports, Export Promotion Capital Goods (EPCG) would function and several of the benefits available under the same, may become difficult to avail of.

For instance, at present, imports under Advance Authorisation are exempted from all duties, including Basic Customs Duty, Countervailing, Additional Excise Duty, Anti-Dumping and Safeguard Duty. Since this is an actual user licence, the material is imported free of all duties and final product is manufactured and then exported.

“We are given to understand that under the GST regime, only Basic Customs Duty will be exempted but IGST will have to be paid on rest of the duties. This should be waived for imports under Advance Authorisation. We are worried that there will be fall in exports if this anomaly is not corrected,” the EEPC India said.

Likewise, while at present the scrips under the MEIS scheme attract 5 % VAT, these would attract 18% GST.

Besides, there are uncertainties over the mode of GST refunds. “We understand from our interaction with the authorities that no refund module has yet been developed and hence we wish to know how the GST will be refunded—like drawback which is without any application or like rebate of excise,” Mr Bhasin said. Likewise, lot more clarity is required with regard to closing stock as on June 30.

For engineering job work, the exporter will have to pay 18% GST as opposed to zero excise duty at present. In case of textile/gems & jewellery, the GST rate has been fixed at 5%. “It was earlier stated that job work will be exempted and it is our request that job work be exempted from GST.”

A particular aspect that is worrying for industry is the provision that the input credit will be available if and only ii it is deposited by the seller. This should be exempted for exports as this will lead to exports of taxes along with the products. Other issues raised by the EEPC India at the BOT meeting included disruptions in the trade in the Middle East after trade isolation of Qatar by major countries in the region and the payment problems in Iran.

Mr Bhasin also raised the issue ol maximum investment limit in MSMEs He said that to Make in India happen and to increase the share of manufacturing sector in the overall GDP from current 16% to 25% by the year 2025, then the MSME investment limit has to increased from existing Rs 10 crore to Rs 30 crores.

Source: Dailyshippingtimes.com

Seair is proud to have a loyal customer base from big brands.

We have successfully served many reputable clients for Import-Export Data Information Services. Here are some of our clients:

Get a free Import-Export data demonstrative report on desired products.

We don’t offer any assistance over buying or selling any products.

Thank You

Big thanks to showing your interest in SEAIR Exim Solutions. We’ve currently received your request for data information. We will return on the same query in a short span of time.

Copyright © 2009 - 2024 www.seair.co.in. All Rights Reserved.