The Month That Was | Updates
India | International
Reduce GST for finished and composition leather from 12% to 5% Reduce job work for manufacture of leather products and footwear from18% to 5% ▶ ▶ Reduce GST on CETPS from 18% to 5%
In the first meeting of the GST Council on Exports chaired by Revenue Secretary Hasmukh Adhia, exporters made a case for exemption from import taxes on inputs under popular schemes such as Advance Authorisation and Export Promotion Capital Goods. They argued that many countries with a robust GST regime such as Canada, the EU, Vietnam, Indonesia and Australia provided such relaxation. Exporters have also proposed that Integrated GST (IGST) refunds should be made on the basis of GSTR-3B, which has now been filed by most of them for the month of July. The government could later reconcile it with the actual invoices when detailed filing of returns is done (GSTR-1 and GSTR-2). “We want refunds to be given on the basis of GSTR-3B only as an interim mechanism till things get settled down and filing of returns happen on time without extensions. Then automatically our refunds would also happen on time,” said an exporter who attended the meeting. Incentive schemes such as Merchandise Export from India Scheme and the duty drawback scheme should also be allowed to continue under GST and there should be procedural simplification, exporters said. “Earlier with a bond and LUT, we could continue exports. But now all our working capital is locked up and the wait for refunds is endless,” said another exporter who did not wish to be named.
Exporters said the Finance Ministry officials responded positively to the proposal of exempting from import taxes inputs under schemes such as AA and EPCG. “Meanwhile, along with simplification in norms and faster refunds, the Council for Leather Exports has also called for rate reviews under GST. “GST on job works should be lowered to 5 per cent and on leather garments and goods to 18 per cent,” said PR Aqeel Ahmed, Vice-chairman, Council of Leather Exports.