Wait...

Online Export Import Data Search

Recent Searches: No Recent Searches
Complete Training Video : Click Here

India’s exports won’t suffer even if existing benefits are quashed under WTO: CEPC


Date: 01-05-2019
Subject: India’s exports won’t suffer even if existing benefits are quashed under WTO: CEPC
Incentives availed by Indian exporters such as duty drawback, Special Economic Zones, Advance Authorisation and other schemes have been challenged by the US before the WTO on the premise that India has surpassed the time in which such benefits could be taken up. 

At present, the report by the panel on WTO’s Dispute Settlement Body on this subject is still pending. Mahavir Pratap Sharma, Chairman, Carpet Export Promotion Council offers a balanced view on whether such export subsidies will continue for India. “Not everything will continue. Until the government of India continues to fight in the international courts against developed countries and the subsidies that they offer to their products and services and India’s offering, I think till such time, we are protected with whatever exists right now,” he says. 

He gives the scenario of what will happen once this is settled. Firstly, he says, once India agrees to do away with schemes such as Merchandise Exports from India Scheme (MEIS) and Service Exports from India Scheme (SEIS), license of MEIS / SEIS will go. “However the government is still not paying exporters, when ideally we are supposed to be 0% taxed companies because eventually we are in the business of exports,” he adds. 

Secondly, Sharma talks of the Rebate of State Levies (RoSL), which essentially is a scheme for exporters to claim refunds from the Centre on all duties paid at the State level. These benefits are meant primarily for exporters of apparel and made-ups. “Many state centric taxes that we pay are taxes embedded into our cost and they don't come in because they are not a part of GST. However, they are still a part of our cost and if we have to compete, then that has to come back as Rebate of State Levies (RoSL). I think once the WTO issue is sorted, the government will bring RoSL in place across all sectors,” highlights Sharma. 

The industry has been rooting for broadening the ambit of the RoSL to additional sectors as well since the government hasn’t been forthcoming on doling out further export subsidies under the MEIS. 

“I think all taxes that are submerged by the state governments will come back to us in one shape or form and the MEIS and SEIS will cease to exist and will come back in RoSL or whatever other name. We will be WTO compliant and we should be WTO compliant and still I don’t think our exports will suffer,” adds Sharma, the optimism evident in his voice. 

He reasons that India will be competitive because interest subsidy, duty drawback will continue and license of the MEIS/SEIS will be replaced by something else under the garb of RoSL. “Marketing and branding of India, Make in India and Indian products under that umbrella will continue to showcase such products and services across the world. We should stay in business and I think the government of India has a clear roadmap in place for such a vision,” sums up Sharma. 

Source: economictimes.indiatimes.com

Infodrive India Pvt Ltd

Delhi :
  F-19, Pocket F, Okhla Phase-I
      Okhla Industrial Area

      New Delhi- 110020
   011 - 40703001

Kolkata :
  5th Floor Stesalit Towers,
      E-2-3, EP & GP Block,

      Sector-V, Salt Lake City,
      Kolkata-700 091
   033 - 71177191

INFODRIVE INDIA Copyright © 1996-2020 InfodriveIndia. All Rights Reserved.
Please read our Terms of Use and Privacy Policy before you use.

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+