Exporters’ order book to see dip of 15% due to GST: FIEO

India Infoline News Service | Mumbai | September 16, 2017 12:34 IST

The order books of exporters are said to have taken a hit with estimates showing an impact of up to 15% across industries and product categories due to the implementation of GST.

The order books of exporters are said to have taken a hit with estimates showing an impact of up to 15% across industries and product categories due to the implementation of GST, reported a leading business daily.

According to an assessment by the exporter’s body Federation of Indian Export Organizations (FIEO), the large drop was for export orders that were meant to be delivered until October.

The dip, witnessed over a period of two months since July, was largely on account of exporters foregoing orders due to lack of credit, said Ajay Sahai, director-general at FIEO. The liquidity crunch had forced many to use available resources to manage existing business operations rather than fulfilling orders from abroad.

The issue of liquidity crunch under the GST regime was flagged off by exporters as the most challenging issue. Their costs have risen by up to 1.25% (Freight On Board value) following the implementation of the new tax regime, according to estimates.

Scrips received by exporters under the Services Exports from India Scheme and the Incremental Export Incentivisation Scheme, apart from the Merchandise Exports from India Scheme, will be taxed.

Disclaimer: The contents herein is specifically prepared by ‘Dalal Street Investment Journal’, and is for your information & personal consumption only. India Infoline Limited or Dalal Street Investment Journal do not guarantee the accuracy, correctness, completeness or reliability of information contained herein and shall not be held responsible.

 

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