Govt may give Cash Refund to Exporters for Improve Cash Flow

As we all know government is likely to push different industries nowadays. Recently, GTR unveiled that the Indian government is likely to consider initiating the refund for the exporters. But this refund will be in cash instead of scrips because of the tax remission scheme. As per the experts, this measure will boost the cash flow for the exporters. Let’s discuss this update related to Indian exporters and how this can be a good scheme.

Discussing the current scenario, the refund Remission of Duties and Taxes on Exported Products (RoDTEP) scheme and the Rebate of State and Central Taxes and Levies (RoSCTL) scheme is issued as a scrip. Through this Scrip, exporters can pay basic customs duties at the time of Import. But now it will be replaced by the cash mode.

Previously used mode, Scrips had also the benefit that exporters could sell their scrip to other importers and use it instead of cash for customs duty payment. The step to giving a refund in cash instead of scrip will be helpful for those exporters who do not import and face issues selling their scrip to large importers with unavoidable discounts. The official statement is available below and you can read it.

“Refund RODTEP and ROSCTL dues to exporters in cash and not in the form of scrips. This will immediately improve the cash flow of thousands of exporters facing a weak export outlook for 2024,” the Global Trade Research Initiative (GTRI) said.

GTRI Co-Founder Ajay Srivastava said in his statement that scrips of small exporters remain unutilised and they get fewer incentives. Also, as per his statement, the cash refund would immediately improve the cash flow.