The incentive schemes designed for promotion of exports will continue even after the Goods and Services Tax roll out from July 1, while deemed export benefits may be withdrawn.
The government is committed to continuing incentive schemes for export promotion, Commerce Secretary Rita Teaotia said while addressing exporters at an event. However, she clarified that deemed export benefits may be discontinued, as GST will bring about a level playing field, Federation of Indian Exports Organisation said in a statement.
Deemed exports refer to the transactions in which the goods supplied do not leave the country and the payment for such supplies is received either in Indian currency or free foreign exchange.
A Sakthivel, southern region chairman of FIEO said that paying GST and taking refunds will block working capital of exporters. He also highlighted various anomalies like non-inclusion of garments manufacturers in the 5 percent GST announced for the textiles industry.
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