Government Gives Breather To Exporters Struggling Due To Lockdown

The government has relaxed the norm for merchant exporters to export goods within 90 days of procurement as the current lockdown imposed after the Covid-19 outbreak has stalled economic activity in India.

Merchant exporters can buy goods from registered businesses by paying GST at 0.1 percent on the condition that the goods will be exported within 90 days, the Finance Ministry said today. The government has extended this 90-day period till June 30 if the stated period ended between March 20 and June 29.

This would help merchant exporters who are struggling due to adverse economic impact of Covid-19 pandemic, said Rajat Mohan, a partner at AMRG & Associates. The government had extended all GST-related deadlines falling between March 20 and June 29 to June 30, but there was no clarity if merchant exporters will get this benefit, Mohan said.

Merchant exporters are those involved in trading activity, and pay 0.1 percent in GST while procuring goods domestically.

The government also clarified that if a resolution professional is changed midway during the insolvency resolution process of a company, a new registration won't be required, and only the authorised signatory needs to be changed. The 30-day deadline to avail a new registration by a resolution professional once a company goes into the Insolvency and Bankruptcy Code has also been extended to June 30. The clarification states that a new registration can be availed within 30 days of appointment of a resolution professional or June 30, whichever is later.