New Delhi, May 17, 2017
The government is re-designing the export benefit scheme MEIS to make it GST-compliant, a senior official said today. Neeraj Prasad, Additional Commissioner, GST Cell, Central Board of Excise and Customs (CBEC) also said that the issue of working capital requirements under the new tax regime is being deliberated upon by the government.
He said this while addressing Ficci’s Executive Committee Meeting here. Under the Merchandise Exports from India Scheme (MEIS), the commerce ministry gives duty benefits to several products. It provides duty benefits at 2 per cent, 3 per cent and 5 per cent depending upon the product and country.
Prasad said that the GST regime would help build competitive advantage by leveraging supply chain. “While manufacturing and trading activities at present times have a strong taxation orientation and the cost of logistics is high vis-a-vis the mature markets, adoption of GST will reduce the cost of production and distribution,” he added.
Prasad added that technology in logistics, such as the use of advanced telematics, real-time vehicle tracking and route planning are likely to help manage and execute operations in an efficient and seamless manner.
Speaking at the event, Harsh Mariwala, Chairman Ficci’s Task Force on GST said the chamber will be conducting three- day workshops on GST compliance for industry. Ficci would conduct training sessions for trade and industry starting from the first week of June.
[The Financial Express]