The Hon’ble Union Finance Minister, Government of India, Shri Arun Jaitley yesterday announced the formation of a Committee on Exports to look at the issues of export sector and to recommend to the GST Council suitable strategy for helping the export sector in the post-GST scenario, according to a statement released by the official Press Information Bureau. The setting up of the Committee was in pursuance of decision taken in the 21st Meeting of GST Council held on 9th September, 2017 at Hyderabad, the statement said.
The Committee on Exports will be headed by the Revenue Secretary, Dr. Hasmukh Adhia and consists of the Chairperson, CBEC; Member (Customs), CBEC; Director General, DGFT; Additional Secretary, GST Council; Director General, DG Export Promotion from the Central Government and Commissioners of Commercial Taxes from the States of Gujarat, Maharashtra, Karnataka, Uttar Pradesh and West Bengal.
A separate Group of Ministers has also been constituted under the convenorship of the Hon’ble Deputy Chief Minister of Bihar, Shri Sushil Kumar Modi, in order to monitor and resolve the IT challenges faced in the implementation of GST.
GJEPC has strongly recommended to the government that levy of GST on imports of raw materials for exports with subsequent refund, was leading to a locking up of working capital and placing a burden especially on small and medium sector enterprises in the sector. It has also suggested that in the case of loose diamonds and coloured gemstones that are for export, transactions taking place between dealer, manufacturer and exporter within a group (which could have a common GST registration) should be exempt from GST.
In an unrelated development relating to GST on exports, the Delhi High Court yesterday ruled that import of goods “constituting inputs for the fulfillment of its export orders placed prior to July 1, 2017” under Advance Authorisations could continue without paying the additional levy of IGST.
The court said, “Export orders are usually placed several months in advance and the price fixed is not variable beyond a point. If an additional levy is imposed, after the acceptance of such export orders, the resultant burden cannot possibly be passed on by the exporter to the buyers outside India. This might lead to the cancellation of such export orders placing the exporter in a piquant situation.”
It however, clarified that this was an interim direction and is “subject to the Petitioner furnishing an undertaking by way of an affidavit that in the case of the Petitioner ….failing to fulfil its export obligations, it is liable to pay the entire IGST as was leviable.”
News Source: gjepc