Useful recommendations of GST Council for exporters

The present exemption of IGST on import of goods under advance authorisation, Export Promotion Capital Goods (EPCG) authorisation and by Export-Oriented Units will be continued

In its 47th meeting last week, the Goods and Services Tax (GST) Council recommended some facilitation measures that will help exporters.

In 2019, the Central Board of Indirect Taxes and Customs (CBIC) had introduced a mechanism to hold in abeyance the refund of Integrated GST (IGST) paid on export goods to exporters identified as risky, based on certain criteria that are not made public. They were subject to additional checks that took a long time. The CBIC issued circulars on June 17, 2019, (no.16/2019-Cus) and May 20, 2010, (no.131/1/2020-GST) prescribing additional safeguards and standard operating procedures. The mechanism was not working