Though e-commerce players are expecting a surge in exports after the roll-out of GST, industry stakeholders feel there is a need to expand the categories for benefits under the export policy.
Under the Merchandise Exports from India Scheme (MEIS), introduced by the Foreign Trade Policy 2015-20, the commerce ministry gives benefits to several products as duty credit scrips. However, the category of products in e-commerce exports, which are eligible for those benefits, is very limited.
The policy is limited to only six categories. It does not expand to gems and jewelry or any new category. It is a challenge for a very small or a medium-sized player to come online because they do not understand the policy clearly.
The subsuming of major central and state taxes in GST, complete and comprehensive set-off of input goods and services and phasing out of central sales tax would reduce the cost of locally manufactured goods and services.
This will increase the competitiveness of Indian goods and services in the international market and give a boost to exports.
A few players in the e-commerce sector feel that under the current foreign trade policy, there is a lack of clarity in terms of e-commerce exports.