The Government should permit wider utilisation of duty credit scrips by exporters as any limited use would impact liquidity situation of exporters, FIEO on Thursday said. Implementation of the Goods and Services Tax (GST) has limited their use by exporters as these can now be utilised only for payment of basic Customs duty and not IGST.
The Federation of Indian Export Organisations (FIEO) President Ganesh Gupta said the Government should permit exporters to use these scrips for payment of integrated GST as well. “The current norm will impact the value of these scrips. We should be allowed to use this for payment of income tax and IGST. Scrips are sort of currency notes. It should not carry any tax on it,” he told PTI. He also suggested that sale of scrips should not attract any duty, otherwise its value would drop significantly. These scrips, a type of certificate that carries certain monetary value, are key incentives extended to exporters by the Government under the foreign trade policy.