GST NEWS
GST glitches likely to hit exports in October
GST glitches likely to hit exports in October
Nov 14, 2017

Exports are expected to shrink in October after several months of increase, with exporters blaming issues related to the implementation of goods and services tax (GST) as well as front-loading of shipments in September to avail of higher duty drawback rates, which are meant to be refunds for tax payments.

Exports had appeared to be back on track, registering a 26 per cent rise in September, the highest in six months.

Data is due to be officially released in a day or two but sources told TOI that labour-intensive sectors such as textiles have been the worst performers. For cotton and viscose textiles, the duty drawback rates and refund of state levies (ROSL), which were in the range of 11-13 per cent, has now come down by 8-9 percentage points from October.

Garment manufacturers are also complaining of widespread loss of orders as buyers, including some of the top global brands, are preferring to source products from Vietnam and Bangladesh, which have cheaper labour but also enjoy preferential access to the US and European markets. While there has been discussion on restoring the rates, the government is yet to notify the changes.

Over the last two months, the government has sought to fix the glitches including offering a special dispensation to exporters to ensure that their funds do not get locked up. In addition, a new tool to enable merchant exporters, who source from manufacturers and export, has also been put in place but it is suffering from initial hiccups, which the revenue department is trying to fix.

 

Source :  The Times of India

Top Stories
Taxpayers can now change email, mobile number under GST system. Here's how to do it
The government has introduced a new system to allow taxpayers to update email and mobile number in t...
Jun 14, 2018
2251 Views
GST Return Filing: Why are central staff lagging states, asks Union Finance Secretary Hasmukh Adhia
With the GST Network, the IT backbone for the goods and services tax (GST), turning out to be a repo...
Jun 7, 2018
388 Views
GST trouble: Assessees told to explain mismatch of ITC claimed in GSTR-3B, GSTR-2A
A large number of assessees under the GST have received notices from the tax department asking them ...
May 30, 2018
424 Views
Centre to provide financial help to SGPC to offset GST on langar
The Centre on Friday decided to provide special financial assistance to the Shiromani Gurdwara Parba...
Jun 1, 2018
205 Views
Textile industry leaders meet Finance Minister over GST issues
Leaders from the textile sector met Union finance minister Piyush Goyal and finance secretary Hasmuk...
Jun 6, 2018
224 Views
Articles on GST