New Delhi: Exporters body FIEO today said under the Goods and Services Tax (GST) regime, exemption on final export products should continue to promote overseas shipments.
“Exemption on the final export products should continue, else it will lead to problem of working capital particularly for MSME units,” Federation of Indian Export Organisations (FIEO) President S C Ralhan said in a statement.
Welcoming the passing of the Constitutional Amendment Bill, he said, GST will not only add to the GDP but will also lessen the incidence of tax.
He said the bill and other related bills should be passed soon for its introduction from April 2017. He also said the Draft GST Model Law has few concerns for the export sector which has already been flagged for their remedial action.
“I expect that the GST will provide rebate of other state taxes in addition to VAT which is presently covered under the refund mechanism by the state,” he added.
In a separate statement, M S Mani, Senior Director, Deloitte Haskins & Sells LLP, said the announcement of the road map for GST introduction within a day indicates the determination of the government to go ahead with ‘One Nation One Tax’ reform.
“However, as some of the key steps are slated from now onwards till March 2017, the implementation date of 1st April 2017 appears difficult to achieve,” he said.
Traders body Confederation of All India Traders (CAIT) suggested that the government may come out with an impact assessment of GST on different sectors to remove misconceptions and confusions that are branding GST as a complex taxation system.