GST to help reorient states towards export promotion: Parliamentary panel

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NEW DELHI: The states considering exports as a drag on their exchequer due to VAT refunds need to be discouraged and implementation of the GST regime would help reorient them towards export promotion, a Parliamentary panel has suggested.

The Parliamentary Standing Committee on Commerce in its report said that the Department of Commerce must further deepen its engagement with the states and spread awareness about the merits of having an optimal export infrastructure and export promotion in general.

This is important in view of the fact that barring a few exceptions, states are generally not taking desired interest in export development, the report tabled in Parliament today said.

“They take export as a drain on their exchequer since they have to refund VAT on the products exported. This attitude of the state governments needs to be discouraged,” it said.

The committee also “hopes that introduction of GST system throughout the country would also help the states to change its orientation towards export promotion in a positive manner,” it said.

It said the department should prepare such strategy for all the states and UTs in the country.

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