–– PR Aqeel Ahmed

Shoes & Accessories - - The Month That Was -

the GST Coun­cil to re­solve the ex­porters’ prob­lem of block­age of work­ing cap­i­tal. He fur­ther stated that in­put tax credit and in­te­grated goods and ser­vices tax (IGST) re­funds for ex­porters were be­ing expedited. He said the GST would be very ben­e­fi­cial for ex­porters in the long run, and added that the new regime will also curb tax eva­sion.

The high­lights of the FTP Mid-term Re­view in­cluded “restor­ing the ben­e­fits un­der the ex­port pro­mo­tion schemes of duty free im­ports un­der Ad­vanced Au­tho­ri­sa­tion, Ex­port Pro­mo­tion Cap­i­tal Goods and 100% Ex­port Ori­ented Units, thus re­solv­ing the prob­lem of blocked work­ing cap­i­tal for ex­porters fol­low­ing the roll-out of GST.” Ex­port in­cen­tives un­der Mer­chan­dise Ex­ports from In­dia (MEIS) have been in­creased by 2% across the board for labour-in­ten­sive MSME sec­tors lead­ing to ad­di­tional an­nual in­cen­tive of ` 4,567 crore, the gov­ern­ment said. This is in ad­di­tion to al­ready an­nounced in­crease in MEIS in­cen­tives from 2% to 4% for ready-made gar­ments and made­ups in the labour in­ten­sive tex­tiles sec­tor, with an ad­di­tional an­nual in­cen­tive of ` 2,743 crore.

Fur­ther, in­cen­tives un­der Ser­vices Ex­ports from In­dia Scheme (SEIS) have also been in­creased by 2% lead­ing to ad­di­tional an­nual in­cen­tive of ` 1,140 crore. A new scheme of self-as­sess­ment based, duty-free pro­cure­ment of in­puts re­quired for ex­ports has also been in­tro­duced. A state- of-the-art Trade An­a­lyt­ics di­vi­sion has been set up in the Direc­torate Gen­eral of For­eign Trade for data based pol­icy ac­tions. The ini­tia­tive en­vis­ages pro­cess­ing trade in­for­ma­tion for spe­cific pol­icy in­ter­ven­tions. Be­sides, a new Lo­gis­tics Di­vi­sion has been cre­ated in the Depart­ment of Com­merce to de­velop and co­or­di­nate in­te­grated de­vel­op­ment of the lo­gis­tics sec­tor. Sup­port to Ex­port Credit Guar­an­tee Cor­po­ra­tion is also be­ing en­hanced to in­crease in­sur­ance cover to ex­porters, par­tic­u­larly MSMES, for ex­plor­ing new or dif­fi­cult mar­kets, an of­fi­cial state­ment said.

In ad­di­tion, the va­lid­ity pe­riod of Duty Credit Scrips has been in­creased from 18 to 24 months and GST rates on trans­fer/sale of scrips has been re­duced to zero. Is­sue of gold avail­abil­ity for ex­porters has been re­solved by al­low­ing spec­i­fied nom­i­nated agen­cies to im­port gold without pay­ment of IGST. The mid-term re­view of the for­eign trade pol­icy (FTP) was ear­lier sup­posed to be re­leased be­fore July 1, in line with the in­tro­duc­tion of the goods and ser­vices tax (GST). How­ever, it was put off as the gov­ern­ment wanted to fac­tor in the feed­back from ex­porters based on their ex­pe­ri­ence of the im­ple­men­ta­tion of GST.

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