GST rollout: Efficient refund mechanism a must, says FIEO chief

Abhishek Law Kolkata | Updated on January 11, 2018

The implementation of GST -- a new era in tax reforms -- would impart much needed competitiveness to Indian exports but there will be initial hiccups, says Ganesh Kumar Gupta, President, Federation of Indian Export Organisations (FIEO).

According to him, the spin-off effect on the economy, particularly on the logistics sector, would also help both manufacturing and exports.

"The refund mechanism through an electronic platform will help reduce transaction costs," he said.

Initial hiccups

In the initial stages, exporters will have to bear the blockage of their working capital and, therefore, the refund mechanism should be efficient in line with the spirit of the Act, Gupta pointed

However, he expressed optimism that the Government will soon consider giving IGST exemption to various duty neutralisation instruments under the Foreign Trade Policy, besides exemption on procurement of goods for export by merchant exporters.

Published on July 01, 2017

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