The Indian government has recently announced that exports of goods or services will now be allowed without payment of Integrated Goods and Services Tax (IGST). This move is expected to provide much-needed relief to small and medium businesses, as well as startup founders, who were previously burdened with high taxes.The decision to allow exports without the payment of IGST was taken at a recent meeting of the Goods and Services Tax (GST) Council.
The council decided that exporters will now be allowed to furnish a Letter of Undertaking (LUT) instead of a bond, as previously required, for exporting goods or services without payment of IGST. This move is expected to help exporters save both time and money, as they will no longer be required to furnish bank guarantees for securing refunds. Additionally, it will also help reduce the compliance burden on small and medium businesses, as they will no longer need to file monthly returns or complete other formalities for claiming refunds.
The new rules will only apply to those exporters who have a clean track record, which means that those who have been found to be involved in any fraudulent or evasion activity will not be eligible for this facility. Exporters will still be required to pay GST on domestic sales, but they will now be able to claim a refund of the same, which will help them reduce their overall tax burden. The government has also stated that it will expedite the process of processing refunds, in order to ensure that exporters receive their refunds in a timely manner. This move is expected to give a much-needed boost to India's exports, which have been struggling in recent months. It will also help small and medium businesses and startup founders to expand their businesses and reach new markets without being burdened by high taxes and compliance requirements. The Indian government has recently announced that exports of goods or services will now be allowed without payment of Integrated Goods and Services Tax (IGST).
This move is expected to provide much-needed relief to small and medium businesses, as well as startup founders, who were previously burdened with high taxes.
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