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.
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