Page 48 - Chemexcil NEWS August - September 2017 for web
P. 48
which showed a frail growth last year after due to A meeting to discuss how the situation could
low demand. be tackled was held. A team of officials from
the Permanent Mission of India at the WTO held
“The first scheme that could come under the discussions with Commerce and Industry Minister
WTO scanner is the popular Merchandise Export Suresh Prabhu, Commerce Secretary Rita Teaotia
from India Scheme (MEIS), which provides a and officials from theTrade Policy Division.
direct subsidy to exporters based on the value of
exports,” the official added. The Ministry of Commerce will announce the
mid-term review of the Foreign Trade policy this
How will this impact the country? month, to discuss the MEIS scheme.
Most of the exports in India may be affected as (Source: http://www.moneycontrol.com/news/business/
the scheme covers more than 7,000 items and will economy/subsidy-on-export-goods-may-be-scrapped-
cost the national treasury around Rs 23,500 crore merchandise-export-from-india-scheme-under-scanner-
a year, according to the report. report-2386829.html dated 13th Sept-2017)
27. EXPORTERS SEEK CLARITY ON INCENTIVES UNDER GST
MUMBAI: Exporters say they're facing difficul- muchneeded clarity ahead of the peak export
ties owing to ambiguity about benefits con- season and are able to plan accordingly."
tinuing under goods and services tax (GST) from
the previous tax regime and queries over access- Sales surge in EU and the US during the Christmas
ing input credit, further clouding their prospects period and exporters need to ensure that goods
amid a dull global market and an appreciating are shipped in September or at least October to
rupee. Some of them have sought clarity on the catch that bump. "This is the need of the hour as
matter from the government ahead of the peak ex- the objective of the FTP is to ensure that goods
port season, said people in the know. are exported and not the taxes associated with
the procurement or manufacture of these goods,"
The development has led to exporters being said a person with direct knowledge of the matter.
unsure about pricing products set for the "Since the GST rates are not identical to the
European Union (EU) and the US and warnings erstwhile indirect tax rates and because there is
that overseas sales could suffer a setback in the no exemption on procurements for exporters, the
upcoming quarter. The Foreign Trade Policy, FTP exporting community is not clear on whether the
2015-2020, has several incentives based on the incentives would increase, decrease or remain the
earlier levies such as excise duty and service tax. It same."
had been expected that these incentives would be
recalibrated under GST but that hasn't happened, (Source: http://economictimes.indiatimes.com/news/
exporters said. economy/policy/exporters-in-serious-fiscal-crisis-due-to-gst-
refunds-delay/articleshow/60482451.cms dated 13th Sept-2017)
"There is an urgent need for the government to
clarify on the incentives available to exporters
as their tax outgo has changed in GST," said MS
Mani, partner, Deloitte India, adviser to some
top exporters. "It is expected that the newly
constituted committee headed by the revenue
secretary (Hasmukh Adhia) would fast track
its recommendations so that exporters get
August-September-2017 46
