Aggrieved exporters likely to get relief from GST Council on Friday
The goods & services tax (GST) Council at its meeting on Friday is likely to give relief to the exporters who were denied refunds due to changes in the Export Promotion
Capital Goods (EPCG) scheme. The scheme allows import of capital goods at zero duty, subject to an export obligation. Integrated GST (IGST) paid on imports is refunded.
However, recently an amendment was carried out in Rule 96 under the Central GST and State GST Acts withdrawing the benefit of refund of IGST to exporters even when a small
import has been done against the scheme. Punjab Finance Minister Manpreet Singh Badal raised the issue in the previous GST meeting, saying the amendment has introduced an
“avoidable” complexity for exporters.
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