Commerce Ministry aims to bring e-commerce at par with other exports for tax refunds: DGFT

ENA Sectors 2023-05-24 14:07:05 New Delhi, May 24 (KNN) Ministry of Commerce and Industry is working to put in place a systems that will bring parity between exports through e-commerce and traditional channels, when it comes to tax refunds, said Santosh Kumar Sarangi, director general foreign trade (DGFT) on Tuesday. A lot of policy tweaking is required. Most of our trade regulations are designed for business-to-business (B2B) interface but e-commerce breaks that barrier and it is a scenario where B2C interface is higher, he said. <a href="https://bit.ly/3B9mZSj"><img alt="FOLLOW US on GOOGLE NEWS" src="https://knnindia.co.in//uploads/gallery/GoogleNews.jpg" style="border-style:solid; border-width:1px; height:95px; margin:1px; width:299px" /></a> Sarangi pointed out that one of the major issue facing the e-commerce exporters is that of how to avail the benefit of remission of tax and duties, which traditional exporters do. At present for the cross-border trade, businesses have to register with the Indian Customs Electronic Gateway (ICEGATE), which is run by the Central Board of Indirect Taxes and Customs. This electronic system acts as an interface between trade users and the Customs department, and as a hub for exchanging information with external trading partners. The record of shipping bills on ICEGATE show the value of exports and on that basis incentive, in the form of refund of duties and taxes paid during the manufacturing of the product is calculated. Theoretically, tax remission is available to any exporter who is exporting with an IEC code. With regard to e-commerce, sometimes it may not be the producer who might be exporting, so the seller on record and exporter on record are different in e-commerce. Nevertheless, whosoever is exporting is entitled to remission provided Electronic Customs Clearance System (ECCS) starts talking with ICEGATE and information flows to ICEGATE, he said. Sarangi added that DGFT is in talks with the department of revenue, CBIC, to ensure that the ECCS and ICEGATE have an integrated system which will allow shipping bills to flow into ICEGATE. Apart from government departments, talks are also on with stakeholders including courier services and e-commerce players like Amazon, Flipkart and ebay to ensure that the e-commerce ecosystem is strengthened, the director general added. The government expects that while exporting through e-commerce, 15-20 per cent of products may get returned. This is different from regular B2B exports where the entire consignment is rejected and not just a part, the financial express reported. We have to build in regulations and we have to build in principles which will facilitate these kinds of issues specific to e-commerce. For this we are working with RBI, the department of revenue, department of posts, banks and e-commerce players, Sarangi said. The policy has announced many steps that would be taken to make exports through e-commerce easy. (KNN Bureau) 33449 https://knnindia.co.in/news/newsdetails/sectors/commerce-ministry-aims-to-bring-e-commerce-at-par-with-other-exports-for-tax-refunds-dgft 2023-05-24 14:07:05 knnindia.co.in Commerce Ministry aims to bring e-commerce at par with other exports for tax refunds: DGFT