Export Promotion Schemes will Continue as they are in GST Regime: Rita Teaotia

While addressing the FIEO Open House Session on Mid Term Review of Foreign Trade Policy at Bengaluru, Commerce Secretary, Rita Teaotia Friday assured the participants, who expressed industrys concern, regarding the news of discontinuation of incentive schemes after GST implementation said that Govt is committed to continue incentive schemes.

However she clarified that Deemed Export Benefits may discontinue as all will get level playing field in the GST regime, informed FIEO in a press release on Saturday.

While replying to the concerns of exporters due to regular beak down in icegate server of customs, she said that the Department is in the process of upgrading the system so that all the issues of the exporters and importers will be solved.

The Open House Session was organised by FIEO at Bengaluru to invite suggestions from exporters on the measures needed in FTP to improve countrys exports in GST regime.

Exporters presented in the programme from various sectors including Engineering, Textiles, pharma, defence, silk, etc argued for continuation of all schemes to make Indian products competitive as well as the need for exemption route instead of tax payment and then take refund.

Silk industry in Karnataka stated that introduction of 5 percent GST for Silk industry will harm their growth as they are facing competition from countries like China and the process is done by marginal worksman.

Ganesh Kumar Gupta, President, FIEO in his address said that major global trade is happening in high and medium technology sector where India's share is absolutely low. China has constantly increasing its share in this sector and thereby showing quantum jump in exports.

He urged the Commerce Secretary to provide fiscal stimulus to high and medium technology sector in the Mid-term review of the Foreign Trade Policy.

He also stressed the need to build Indias reputation of being the leader in software to sell our hardware and software embedded hardware.

Dr A Sakthivel, Regional Chairman, FIEO (Southern Region) said that paying GST and take refund will block working capital of exporters which is costly compared to our competing countries. He also highlighted various anomalies like non-inclusion of Garments manufacturers in the 5 percent GST announced for textiles industry job works.

Dr Ajay Sahai, DG & CEO, FIEO in his address said that FIEO suggested to the department on flexibility for E-commerce exports, Scheme for supporting Branding and value addition, scheme for sales to foreign tourists visiting India, integrating India into regional value chain, etc. - See more at: http://www.smetimes.in/smetimes/news/top-stories/2017/Jun/24/export-promotion-schemes-will-continue-under-gst-regime1635085.html#sthash.u0XpuFyK.dpuf