Aurangabad, Aug 16 (KNN) Federation of Indian Export Organizations (FIEO) in association with Chamber of Marathwada Industries Association (CMIA) is organizing a one day training programme for MSME exporters on ‘GST for Exports’ on August 18.

The programme will be held at Conference Hall, CMIA, Bajaj Bhawan, P-2, MIDC Railway Station, Aurangabad from 10.00 am.

The topics to be covered during the training programme include - Definition under GST; Understanding Exports under GST; Zero Rated Supply; Procedures and Concepts of LUT/Bond; Refund of ITC; Refund of IGST Paid on Exports; Export Documentation; Export Incentives; New Factory Stuffing Procedure; Import & Duty Calculation; and Q&A round.

The objective of the training is to educate the exporters about the changes in Provisions and Procedures of Exports under the new GST Regime.

The training will cover the topics such as the details to be captured in Invoice, Shipping bill, Eligibility for LUT/Bond and the procedure to acquire, Factory stuffing permission, Refund of unutilized ITC procedure, Refund procedure for exports & Effect of GST on various incentive schemes under FTP.

“During earlier regime exporters were free from any tax burden. They used export schemes to buy duty-free raw material or machinery needed for making an export product. But presently exporters are faced with stiff challenge as under new tax regime an exporter has to pay GST at every stage. This is ironic as exports are zero rated under GST, implying no tax burden,” said the organizers.

“But an exporter has to pay GST at the time of buying inputs and exporting the finished goods. Though he can seek a GST refund after the exports, the refund may take place after 3 to 12 months of payment of taxes. This gap makes exports expensive. Firms will have to borrow money not only to buy inputs but also to pay taxes and interest,” the organizers added.

Exporters are acutely concerned that GST will severely dent the liquidity in a big way and the compliance cost of merchant exporter may go up. Moreover, exporters are also faced with constraints in job work, delays in initial returns for exports in the months of July and August, procedural issues in LUT/Bond.

Delays due to lack of knowledge on the part of both exporters as well as tax officials have severely affected exports from India.

In view of the above, the training programme is being conducted and the MSME exporters have been called upon to attend the event.