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Extend DEPB till GST launch: FIEO to govt
June, 14th 2011

The Federation of Indian Exports Organisations (FIEO) today suggested that the 14-year-old Duty Entitlement Pass Book (DEPB) scheme be extended till the Goods and Services Tax (GST) is introduced in the country.

"The DEPB scheme should continue till GST is introduced as it will not possible to fix the drawback rates for all the products for which DEPB rates exist in the short span of three months," FIEO President Ramu S Deora said in press statement.

GST, which was scheduled for release from April next year, may now not be possible as the government has been unable to secure the consent from all the states.

Deora said the government should issue a notification on the same so that the uncertainty regarding extension gets over.

"In the long run government should definitely bring all products under the All Industry Duty Drawback Scheme and should also involve industry bodies in fixation of the rates for accuracy of the data and transparency in fixation," he said.

The Centre today extended the DEPB scheme, which was supposed to end on June 30, to upto September 30 but exporters urged the Finance and Commerce Ministeries to extend it further.

Under the scheme, exporters are given refunds of tax incidence on the import content of their export products. The scheme is the most popular among exporters, especially in the engineering sector, including automobile industry.

 
 
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