Review GST provisions for exports: Manpreet to Jaitley
PUNJAB FM SAYS THE STATE’S SMALLSCALE INDUSTRY HAS BEEN HIT SEVERELY BY ISSUES RELATED TO GST
CHANDIGARH: Even as the slide in rupee should cheer exporters, Punjab’s small scale industry has not able to cash in on it. State finance minister Manpreet Singh Badal has written to Union finance minister Arun Jaitley urging him to address issues in the Goods and Services Tax (GST) regime at such a critical time. The letter says with the rupee crossing the 72 mark against the US dollar and the country’s current account deficit burgeoning, this is a time to undertake a quick review of the GST provisions to ensure that exports are not impinged in any manner.
“Punjab’s small scale industry has been impacted severely by GST issues. I have written to the Union FM based on suggestions received during my interaction with exporters. We need to improve ease of doing business for exporters as well as cut the cost of compliance,” he told HT.
Among the measures suggested by him are that exporters be allowed duty-free import of inputs meant to be used for export products. “This concession is no more available to exporters who have first exported and later wish to replenish the inputs. It is wrong to deny the benefit on the grounds that the exporter has already fulfilled the export obligation and doesn’t require inputs as the import of inputs is a continuous process for future exports. This will help exporters in better working capital management,” the letter states.
The FM has also called for restoring other pre-gst sops such as advance authorisation for deemed exports.
Deemed exports, Manpreet says, should be entitled to all the benefits that are available for physical exports. “A dollar earned is a dollar saved and there is no need to make any distinction,” he added.
He has also asked the union minister to restore the benefit of refund of GST paid on exports as the decision has been made with retrospective effect making exporters run for cover. “The fact that this decision has been taken without the GST Council, itself is highly questionable, as to whether such far-reaching decision can be taken by the GST implementation committee,” he adds.