IGST, cess relief to exporters extended till March
Govt extends the exemptions granted to export oriented units and software technology parks from payment of IGST and compensation cess on imports by 6 months
New Delhi: The government has extended the exemptions granted to export oriented units and software technology parks from payment of integrated goods and services tax (IGST) and compensation cess on imports by six months till 31 March 2019.
The exemption from IGST and cess granted to these units was slated to come to an end on 30 September. The Central Board of Indirect Taxes and Customs (CBIC) said that these levies will be applicable on these units from April 2019.
As a principle, GST regime does not encourage exemptions as it keeps supply of goods and services out of the IT trail. It instead, prescribes upfront tax payment and subsequent refunds as part of a self policing mechanism in the IT driven indirect tax system. However, the exemption was granted in this case to ease exporters’ rigors of compliance. A large number of exporters are small and medium enterprises that are big job creators, especially in rural areas.
ALSO READ: Amending the GST law: Let the numbers speak
PwC India partner Pratik Jain said the exemption was given till 1 October 2018 with an expectation that a proposed e-wallet scheme would come in by then, replacing the upfront exemption. “However, it seems that it will take more time and hence the exemption has now been extended till end of the financial year 2018-19,” Jain said.
- Countries agree rules for implementing Paris climate treaty at UN summit
- May said to warn Merkel, Macron their Brexit deal is almost dead
- Rafale verdict: Centre moves application in Supreme Court
- AgustaWestland case: Christian Michel’s custody extended by 4 days
- India, France review pact to build nuclear reactors
Editor's Picks »
- Markets yet to warm up to KEC International’s record order book
- Indraprastha Gas and Mahanagar Gas shares are low on fuel
- Overhang of capacity constraints lifts for ACC, Ambuja Cements
- Stock market traders fall for the ‘buy rural’ narrative, once again
- Continuing volume momentum puts Indian ports in a good position