Kolkata, Aug 20 (IANS) In the Goods and Services Tax (GST) regime, exporters will need to adapt to the emerging scenario as exemptions and incentives given to promote exports will go away, a senior official said on Saturday.
“Once the GST is implemented, exemptions and incentives will have to go away,” Union Commerce Secretary Rita Teaotia said.
“Philosophically, we are moving in the direction of creating a conducive policy and economic environment for everybody across the country and that is the intention of the GST law,” she added.
“In a fragmented system, there could be cascading effect of taxes and local duties, but to offer a level-playing field “the requirement of incentives and subsidies would certainly need to be moderated and modified”.
“But that would be taken up subsequently,” she said at a session organised by the Engineering Export Promotion Council, Federation of Indian Export Organisations, Assocham, Bengal Chamber of Commerce and Industry and Gem Jewellery Export Promotion Council.
She said the GST law would be framed by the Revenue Department, not by the Commerce Department.
The officer said the Revenue Department is working on suggestions and consultations received from all the stakeholders on the GST and commerce department has provided its inputs.
According to Teaotia, India’s policies are being framed to increase the competitiveness of the country’s industries so that Indian players are able to take on the challenges in the global market.
“The GST itself is an effort. Nearly all the policies are geared towards that,” she said.