Global Trade Research Initiative (GTRI) has urged the Indian Government to consider giving refunds to exports in cash instead of scrips for tax remission schemes as this would immediately improve the cash flow for them, GRTI said on January 16.
As of now, the refund under the Remission of Duties and Taxes on Exported Products (RoSDTEP) scheme and the rebate of State and Central Taxes and Levies (RoSCTL) is issued as a scrip which can be used to pay basic customs duties at the time of import.
The scrip can be sold to other importers who can later use the scrip instead of cash for payment of basic customs duty.
These schemes refund select state and central levies to Indian exporters.
Refunding RODTEP and ROSCTL duties to exporters in cash and not in the form of scrips will immediately improve the cash flow of thousands of exporters facing a weak export outlook for 2024, GTRI said.
