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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.

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