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Govt urged to expeditiously address initial challenges faced by exporters in GST regime

 

The Goods and Services Tax (GST) is a path-breaking reform that will only bear fruit in the long run after the initial hiccups have been sorted out, said Mr Ganesh Kumar Gupta, President, Federation of Indian Export Organisations, while addressing exporters at a post-GST meet on export compliance organised by FIEO in Mumbai on July 13, 2017. He elaborated that the liquidity problems of exporters, constraints in job work, delays in initial returns for exports in the months of July and August, procedural issues in LUT/Bond, etc. are being flagged by FIEO and were taken up during his meeting with the Commerce and Industry Minister recently.

 

He appreciated that the government has considered FIEO’s various requests on priority by giving suitable clarifications and also nominating Mr Satya Srinivas, JS Customs as the nodal point in CBEC, and Mr Ajay Srivastava, Joint DGFT as the nodal point in DGFT to clarify the queries of exporters regarding GST.

 

Mr P. K. Mohanty, Consultant, GST, CBEC, New Delhi described GST as a great reform that will lead to greater transparency and transformation. It will have a profound and positive impact on society, economy and the tax regime and will change the way one runs his/her business as well as tax collection. Once the system stabilises, life will be better and ease of doing business would be certainly realised. Dedicated efforts have been made by the Central and state officials for GST implementation, he said.

 

Mr Rajiv Jalota, Commissioner, State Tax GST, Maharashtra informed that the state government has enacted SGST Act, Rules and Notifications on the lines of Central legislation and that the state is geared to meet the challenges of the new regime.

 

Dr Ajay Sahai, DG and CEO, FIEO, raised the concern that GST will severely dent the liquidity of the exporter in a big way, likely increasing the compliance cost of the merchant exporter. This could result in India’s export competitiveness falling by about 2 per cent, which would be a big blow for exporters. He, however, added that the government is looking at various options to neutralise such effects under the GST regime.

 

Addressing the participants, Mr Khalid M. Khan, Regional Chairman, FIEO (WR), flagged the issue that while transition input tax credits and inherent benefits of GST would lower costs, higher GST rates for products may play spoilsport in some cases. Determination of price and being competitive would be critical for all enterprises, especially for price-sensitive products. Even MSMEs would work on pricing patterns to remain effective, he said.

 

The meeting was also addressed by Dr John Joseph, IRS, Chief Commissioner of Customs, Mumbai Zone - II; Mr Rajeev Tandon, IRS, Chief Commissioner of Customs, Mumbai Zone - I; Dr Sonia Sethi, IAS, Additional DGFT, Mumbai and Mr Deepak Mata, IRS, Assistant Director, NACIN, said a release.

 

Source: Exim News Service - MUMBAI, July 16

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