Exporters, play by the rule
Trade policy needs to focus on sound physical infrastructure.
The World Trade Organization's (WTO) recent assessment of the second half of 2017 to be buoyant for the global trade in merchandise goods has not come a day too soon as India's exports in October shrank by 1.12 per cent in dollar terms and by four per cent in rupee terms, the weakest show since the 8.6 per cent decline in July 2016. Without hesitation, the exporting community put the blame on the inordinate delay in the settlement of refunds on input tax the authorities are indebted to them, following the rollout of the Goods and Services Tax (GST) and its clumsy implementation in the initial months. Whether it is the duty drawback receipt under the earlier schemes or the input tax credit in the new GST, which unifies all indirect taxes and leaves exporters with the lofty notion that exports are zero taxed, the nub of the issue is that the exporting community always looks forward to getting what is legally due to it for undertaking the national task of exports!