Indore: Giving a sigh of relief to government amid complexity of GST compliance, exports has registered positive growth in the month of August, with 26 out of 30 major product groups remaining in the positive territory. With the successful projects, the export is likely to reach USD 310 billion this fiscal, said a report by Federation of Indian Exporters Organization (FIEO).
Former regional chairman of FIEO, western region, Khalid Khan informed about the report while addressing a session on ‘Post GST Meet on Export-Import Compliance’ organised by FIEO’s MP chapter here on Thursday. The session was held aimed at benefitting the exporters to make and also, to clarify their doubts related to the implementation of GST, especially pertaining to the export and import related compliances.
Other speakers of the session were chief guest commissioner of CGST and customs, Indore, Neerav Kumar Mallick (IRS), development commissioner SEZ, Pithampur, JM Gupta, deputy commissioner MP SGST Sudeep Gupta and convener of FIEO MP chapter, Suber Rampurawala.
Khan informed that “The export figure for the month of August once again showed positive growth as 26 out of 30 major product groups were in positive territory. Engineering goods, petroleum, organic & inorganic chemicals, marine exports, plantations, cotton yarns, fabrics and made-ups and plastics & linoleum were some of the sectors, which contributed impressively to the positive growth in exports during the month. However, labour intensive sectors such as gems and jewellery, leather, apparel and handicraft either posted negative growth or modest growth which is a worrisome sign.”
He said that “While FIEO is very encouraged by the current trend in exports, at the same time it is also worried about future growth, as order booking position from October onwards is not very encouraging in view of increasing global uncertainties, rupee volatility and challenges at the domestic front.”
However, he claimed that going by the current trend, FIEO expects to reach exports of USD 310 billion this fiscal. “With the implementation challenges emerging under GST, there may be moderate growth in the next few months, as the new system will create transition problems compounded by lack of understanding at the field formations,” he argued.
Mallick in his address said that “GST is the major tax reform in the country and being structured to help out exporters. They may have difficulties initially, but under GST there is much more clarity and transparency.” He also informed that exemption to submit bond without bank guarantee for an exporter registered with recognised Export Promotion Council has been accepted by the department, which will avoid the blockage of working capital of exporters.
Development commissioner of Pithampur SEZ, Gupta explained the procedure to be followed by the SEZ units for supply to the countries with which India has Double Taxation Avoidance Agreement (DTA) units and also the related procedure. Deputy commissioner of MP SGST, Sudeep Gupta spoke about several provisions of GST, liability and also the penal provisions at length.
The seminar was followed by question answer session, which clarified many of the issues concerning GST from the point of exporters and importers. Over 100 exporters from Indore, Bhopal, Pithampur, Dewas, Burhanpur, Nagda and other places of the state attended the session. Suber Rampurawala proposed vote of thanks.
