GST Council Extends Tax Exemptions for Exporters For 6 Months
GST Council Extends Tax Exemptions for Exporters For 6 Months.26th Meeting of GST Council held today. GST Tax Exemptions for Exporters For another 6 Months beyond 31st March 2018. This decision will allow the companies to avail tax exemption on imported goods. Thus, exporters presently availing various export promotion schemes can now continue to avail such exemptions on their imports up to 1st October.
The council has reviewed the progress in a grant of refunds to exports of IGST and Input Tax Credit. The Council has appreciated the pick up in the pace of award of IGST refund. Thereafter, the Council directed GSTN to expeditiously forward the balance refund claims to the Customs/Central GST/State GST authorities, as the case may be, for their immediate sanction and disbursal.
It may be recalled that in its meeting held on 6th October last year the Council had noted that exporters are experiencing difficulties of cash blockage on account of having to upfront pay GST / IGST on the inputs, raw materials, etc. / finished goods imported/procured for purposes of exports. The govt has introduced pre-GST tax exemptions as an interim solution on such imports.
GST Tax Exemptions for Exporters
Additionally, the govt has introduced a special scheme of payment of GST @ 0.1%, for merchant exporters, on their procured goods. Also, domestic procurement made under Advance Authorization, EPCG and EOU schemes recognized as ‘deemed exports’. The suppliers or the exporters can claim a refund of GST/IGST paid thereon. All these avenues available up to Mar 31st.
The council has decided to introduce an e-Wallet scheme as a permanent solution w.e.f 1st April. DGFT will credit the notional/virtual currency to e-Wallets. The exporters can use this virtual currency to make the payment of GST/IGST on the goods imported/procured so as not to block their funds.
The Council agreed to:
- Postpone the implementation of the e-Wallet scheme by six months, i.e., up to 1st Oct 2018.
- Extend the present dispensation regarding exemptions etc. which is available up to Mar 31st, for a further six months, i.e., up to October 1, 2018.
Source: PIB
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