Government suspends issuing export benefits under key schemes

The government on Thursday said it has put on hold issuing benefits under various export promotion schemes due to changes in the allocation procedure.

The Directorate General of Foreign Trade (DGFT) said that benefits under the Merchandise Exports from India Scheme, Service Export from India Scheme, Rebate of State and Central Taxes and Levies, and Rebate of State Levies have been “put on hold for a temporary period”.

“During this period, no fresh applications would be allowed to be submitted at the online IT module of DGFT for these schemes and all submitted applications pending for issuance of scrips would also be on hold,” the DGFT said in a trade notice.

It said that trade would be informed once issuance is opened once again.

“This suspension will create uncertainty with respect to these benefits for the exporters and may also impact thier cash flows. The export industry would hope that this suspension is lifted soon and the benefits are made available in full and soon,” said Abhishek Jain, Tax Partner, EY.

The suspension comes amid the government yet to notify the benefits rates under the Remission of Duties and Taxes on Export Products (RoDTEP) scheme that was put in place in January.

Export bodies have been asking for release of the funds for MEIS, clarity on SEIS benefits and continuance of seamless refund of IGST to ease fund blockage.

Merchandise exports grew a record $95 billion during April-June and India aims to clock $400 billion exports in FY22.

Source link


China’s unwrought copper imports fall m/m in May on record-high prices

Article content China’s copper imports fell 8% in May from the previous month, customs data showed on Monday, as record-high prices further eroded...

HSBC to exit subscale U.S. retail banking as part of pivot to Asia

Article content HONG KONG — HSBC announced it is withdrawing from U.S. mass market retail banking by selling some parts of its business...

Rationalise GST rate; reduce exemptions or hike rates

In the past four years, while the reform has achieved a fair bit of maturity is some aspects, the GST child needs more...