Under GST, exemption on export should continue to promote overseas shipments: FIEO

The Exporters’ body Federation of Indian Export Organisations (FIEO) has welcomed the passing of the Constitutional Amendment Bill and said that under the Goods and Services Tax (GST) regime, exemption on final export products should continue to promote overseas shipments.

FIEO President, S C Ralhan said that exemption on the final export products should continue, else it will lead to problem of working capital particularly for Micro, Small & Medium Enterprises (MSME) units. The Draft GST Model Law has few concerns for the export sector which has already been flagged for their remedial action.

Ralhan further said that GST will not only add to the GDP of the country but will also lessen the incidence of tax thereby increasing the demand and propelling manufacturing. The GST bill and other related bills will be passed soon and he expected that GST will be introduced as early as from April, 2017. He also expressed the hope that GST will provide rebate of other State taxes in addition to Value Added Tax (VAT) which is presently covered under the refund mechanism by the States.