To promote exports from India, Government has provided various exemptions and incentives to exporters both at the central and state level and provides specific support to some industries and markets where exports would be of special value. Goods and Services Tax (GST) helps the exporter and export incentives will continue for exporters in order to earn foreign currency and promote business and strengthen the economy.
GST will Impact Positively the Same in Following Ways:-
- Exporters are now able to get the refund and rebate of the state taxes (SGST) which was previously not available to them.
- The duty drawback rates may go up because the GST rate is higher than the rate of Central Excise. The component of service tax is quite low
- The refund procedures may become simple as all the data of GST is available online
- Now All export data is available on the GSTN domain. It will be quite
- transparent and no scope for the Tax Department or the exporters to dispute or manipulate it.
- The refund/rebate on the export of services may be increased substantially and brought to par with the export of goods.
- All other export promotion schemes may be re-modelled to remove duplication and help the exporter.
- There will not be any need for physical verification of export documents and the claims as all requisite data will be available on the GSTN server.
- There is no delay due to bureaucratic hurdles or delays in incentive grants.
- After GST No one can claim incentives on forged documentation as all export/ import data, mode of payments etc. available with the GSTN domain.
Recommended: GST Impact on Gross Domestic Product (GDP) in India
All the exports transaction are treated as the zero-rated supply of goods and services and their credit will be available at the ICEGATE gateway with respect to all the taxable goods used in the manufacturing of the export of goods and services. This has simplified the process of getting incentives but also reduce the cumbersome burden of processes and interaction with government servants and organizations and also increase the competitiveness of Indian goods and services in the international market and empower Indian exports.
