GST overhaul set to make life easier for exporters

THE OVERHAUL OF GST, IN SPITE OF A SHORT-TERM DENT IN REVENUE GROWTH, WILL BE FISCALLY SUSTAINABLE, THE OFFICIAL SAID

- Mint Correspondent

India’s proposed overhaul of Goods and Services Tax (GST) will speed up tax refunds for exporters, improve their cash flow, and streamline compliances for small businesses, as part of overall reforms meant to unlock the untapped potential of the economy, a central government official said on Saturday.

India’s efforts to make life easier for businesses, especially exporters, comes as they face headwinds in their largest market, the US, which has slapped additional tariffs of 50%, including a penal rate for New Delhi's energy trade with Russia. On Friday, talks between US President Donald Trump and Russian President Vladimir Putin remained inconclusive in deciding a ceasefire in the Russia-Ukraine war.

“The GST overhaul will result in 90% of tax refunds getting issued very quickly, within two or three weeks,” said the official, who spoke on the condition of anonymity.

“While this will be for all taxpayers, exporters will benefit the most,” the person said.