The government should permit wider utilisation of duty credit scrips by exporters as any limited use would impact liquidity situation of exporters, FIEO today said. Implementation of the Goods and Services Tax (GST) has limited their use by exporters as these can now be utilised only for payment of basic Customs duty and not IGST. The Federation of Indian Export Organisations (FIEO) President Ganesh Gupta said the government should permit exporters to use these scrips for payment of integrated GST as well.
“The current norm will impact the value of these scrips. We should be allowed to use this for payment of income tax and IGST. Scrips are sort of currency notes. It should not carry any tax on it,” he told PTI. He also suggested that sale of scrips should not attract any duty, otherwise its value would drop significantly. These scrips, a type of certificate that carries certain monetary value, are key incentives extended to exporters by the government under the foreign trade policy.
You may also like to watch:
Earlier, manufacturing exporters who import raw material for the export purpose were allowed to utilise these scrips for payment of Customs, excise duty and service tax. Gupta also said there is a confusion among exporters about several issues related to GST. “In the long term, there is no doubt that GST will have a positive impact on exports, but currently exporters are facing issues related to submission of bonds or legal undertakings for clearance of export consignments post GST,” he added.
Exporters are also facing doubts over the duty refund authorities, he said, adding that the IT system at ports is not working properly due to which exporters are not able to get shipping bills. These bills are important to claim GST refunds. “There are a lot of ambiguities about the implementation of the GST law. It needs early resolution. We have taken up all the issues with the commerce ministry,” Gupta said.