To boost Indian exports, government’s initiatives of introducing promotional schemes to exporters, it has been clarified that under the GST regime, all such schemes will remain continue. More importantly, Director General of Foreign Trade, Mr. Ajay Kumar Bhalla has recently stated in his statement that the exporters will get more credit into their account under the current Foreign Trade Policy.

Exporter’s concern of blocking their working capital in paying duties first and then seeking refunds will get relieved once the GST gets implemented w.e.f. 1st July as the refund process will become more simpler practically. However, under the provisions of CGST Act, 90% of the provisional claim amount i.e. duty paid will be refunded within 7 days.

To sum up, because of GST, exporters and government may face some problems initially but these will be short termed and will get resolved within 3 months.