Aggrieved exporters likely to get relief from GST Council on Friday

Several exporters availing benefits of the EPCG scheme have received refunds of IGST while many have been denied similar refund

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