A parliamentary panel has suggested the government to extend the pre-GST duty drawback rates until June next year or till the revenue department comes out with the revised rates for exporters.
A parliamentary panel has suggested the government to extend the pre-GST duty drawback rates until June next year or till the revenue department comes out with the revised rates for exporters. In its report on the ‘Impact of Goods and Services Tax (GST) on Exports’ placed in Parliament today, the Standing Committee on Commerce chaired by Naresh Gujral recommended that a formal mechanism for grievance redressal of exporters must be put in place. “In order to bring relief to the exporters, the Committee recommends that the Department of Revenue, Ministry of Finance extend the pre-GST duty drawback rates till June 30, 2018 or till such time the Department works out the revised duty drawback rates. “The Committee hopes that this will enable the exporters to overcome the problems being faced by them currently besides helping them to take a long term perspective while negotiating export orders,” said the panel in the report. Goods and Services Tax (GST) refund mechanism for exporters is tardy and cumbersome owing to several operational issues, it added. The panel also suggested that a simplified system for filing of refunds needs to be devised which is in line with the ease of doing business. Observing that structurally GST is a much better taxation system than the earlier tax regime, the committee said, “teething problems have been there and there is a feeling that what was thought as the grand idea of GST on the ground, the implementation has not been proper”.