Module 12: Implication of GST in Export Chain.
Channel: GyaanShaala Education
Date: 2021-08-30

For an Indian exporter’s point of view, the Goods and Services Tax (GST) has become some important area as Indian exporters are finding out lot of issues related to working capital deployment in export chain and raised this issues at various levels. GST provision zero rating of output taxes however an exporter has to pay input tax on procurement of raw material which involves a significant level of working capital. Exporter may face liquidity problems since the process necessitates upfront payment of GST while procuring inputs and getting refunds after substantial lag will block working capital. While exporting, Indian exporters need to pay IGST or take exemptions, which increases compliance costs. The session is aimed at addressing these issues so as to save the precious working capital of exporters.