Union Commerce & Industry Minister, Nirmala Sitharaman in her
meeting with the Union Finance Minister, Arun Jaitley yesterday has
suggested exemptions under GST (Goods & Services Tax) for export
sensitive sectors including Tourism and Hospitality. She also asked for
100% exemption or lower slab of 5% for labour intensive sectors like
plantations, leather manufacturing, etc., under the GST.
According to reports, the Union Commerce Minister also suggested
a review of the current EPCG (Export Promotion of Capital Goods
Authorisation) Scheme where importers of capital goods and raw materials
has to claim the refunds of tax paid upfront which makes the process
cumbersome. She asked simplification of the process as the refunds
generally takes months. Such imports need not to be taxed upfront.
Hotels currently enjoy the EPCG scheme for importing capital goods required for hotel projects in the country.