GST RELATED REFORMS
• GST has been launched w.e.f. 1.07.2017. It incorporates zero rating of exports. Taxes will not be exported. On the export of finished goods, there is an option of either obtaining refund of GST paid or getting exemption from payment of GST on submission of Letter of Undertaking/Bond.
• Integration of various taxes in GST implies refund of erstwhile VAT across all States uniformly, which earlier depended on the prevailing dispensation in the States and often involved delays.
• Uniform tax rates and practices across States have led to huge logistics and transaction cost saving for exporters.
• Issue of working capital blockage of the exporters due to upfront payment of GST on inputs has been addressed. Now, under Advance Authorization, Export Promotion of Capital Goods and 100% EOU scheme, exporters have been extended the benefit of sourcing inputs/capital goods from abroad as well as domestic suppliers for exports without upfront payment of GST. Further, an 'E-wallet' will be launched from 1st April 2018 to make these schemes operational from 1st April 2018.
• Merchant exporters have been allowed to pay nominal GST of 0.1% for procuring goods from domestic suppliers for export.
• Issue of Gold availability for exporters resolved by allowing Specified Nominated Agency to import Gold without payment of IGST.
REPOSITIONING EXPORT STRATEGY
• Continued support for multilateral rule based global trade
• Continued efforts to integrate with major regions and expand markets in new regions
• Grow trade through focus on new markets and product lines
• Accordingly, revised FTP focuses on
o Exploring new markets and new products as well as increasing India's share in the traditional markets and products o Leveraging benefits of GST
o Closely monitoring exports performance and taking immediate corrective action through state-of-the-art data analytics o Increasing ease of trading across borders through trade facilitation
o Enhancing participation of Indian industry in global value chains o Increasing farmers' incomes through a focused policy for agricultural exports
o Promoting exports by MSMEs and labour intensive sectors to increase employment opportunities for the youth.
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