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IGST relief on re-import of goods to promote exports’

The Government’s decision to give relief from IGST on re-import of goods after exhibition would help in promoting shipments of gems and jewellery, an industry body said on Thursday.

The Gems and Jewellery Export Promotion Council of India (GJEPC) said goods exported for exhibition purpose or on consignment basis were being levied IGST on re-import of the unsold products which was causing huge blockage of funds. It was also discouraging exporters to participate in overseas exhibitions which resulted in decline of exports, GJEPC said in a statement. “Now, Revenue Department has come out with a circular which exempts this from IGST (integrated goods and services tax),” it added.

The council was demanding a clarification for the last one year on the matter as about 87 show cause notices had been issued to exporters for payment of IGST and penalty on past imports.

“All these are now considered dropped, which is a big relief for exporters,” it said. GJEPC Chairman Pramod Agrawal hailed the government's move. The labour intensive sector contributes significantly in the country's total exports which stood at USD 331 billion in 2018-19. Gems and jewellery exports declined 5.32 per cent to USD 30.96 billion in 2018-19.

Courtesy - The Hitvada



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