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Trade & Policy

Nominal IGST And CGST Rates for Exporters Is Now Official: Govt. Gazette

• By  Henry Dsouza
• October 24, 2017

The key decision taken by the GST council to impose a nominal 0.1% IGST rate for exporters till March 31, 2018 has been notified officially in the government gazette. Similarly a CGST rate of 0.05% was proposed in a separate gazette dated October 23, 2017. The proposed e-wallet system will roll out by April 1, 2017.

Following instructions from Prime Minister Narendra Modi and consultations with Finance Minister Arun Jaitley, the GST council came up with a slew of measures to grant immediate and long term relief to exporters, both the big players and smaller ones.

The steps include the proposed establishment of an e-wallet for input tax credit for exporters and facility for quarterly filing of tax returns for small businesses. In addition, the tax rates on 27 items were reduced by the GST council.

The relief came into effect close on heels of the 22^nd GST council meeting in which the secretaries expressed the opinion that credit blockage was engendering major liquidity problems for the exporters. 

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