Mar 29, 2017

GST effect on Foreign Trade Policy: Effect on various exemption and incentive schemes - Part 2

I had elaborated my thoughts on the topic in the Part 1 of the series. This is a continuation and part 2 of the series. As was outlined in part 1, it appears that the duty exemption schemes, specifically the popular advance authorisation scheme may get a short shrift under GST and may be made ineffective. As proposed, GST would allow only refunds on the duties suffered, unless a course correction is done before the launch and now.

I have discussed some details in the video post here:

I have also summarised my thoughts on other schemes, namely the Export promotion capital goods scheme and the export incentive schemes in the same video. I guess I got too lazy to type at some point and decided to video log it over a coffee.

To sum it up, it appears that GST has not kept the best interests of exporting community in mind at the time of rollout. However, one must also agree that GST is being rolled out with a sense of urgency and there will be kinks and knots and pockets of dissatisfaction which would get ironed out over a period of time. Probably there would be revision or rethink about the exemption schemes too. The last word is not yet out. I would most likely come up with a final part of the series then. Till then fingers crossed.